Tornado Damage Reveals Insurance Coverage Concerns in North St. Louis
When an EF3 tornado tore through north St. Louis on Friday, it left a trail of destruction that highlighted a significant concern for many residents: the lack of homeowners insurance. The storm killed at least five people and damaged thousands of homes, but the extent of insurance coverage among those affected remains unclear.
Research from the Consumer Federation of America indicates that about 7% of Missourians lack homeowners insurance, while LendingTree.com estimates the figure could be as high as 11%. Lenders typically require mortgage holders to carry insurance, but Missouri law does not mandate coverage for homeowners who own their properties outright.
Communities north of Delmar Boulevard in St. Louis have several factors that suggest a higher likelihood of homeowners being uninsured. According to Sharon Cornelissen, a researcher with the Consumer Federation of America, people of color are disproportionately represented among those lacking homeowners insurance, with an estimated 11% of Black homeowners being uninsured. The population in north St. Louis is approximately 91% Black, according to demographer Ness Sandoval of St. Louis University.
The issue is further complicated by the fact that many homes in the affected areas are valued at less than $150,000, making insurance less likely. For example, the median sales price in the Academy-Sherman Park neighborhood is about $97,000, according to Realtor.com, while homes in the Ville neighborhood often sell for between $65,000 and $75,000.
Another factor contributing to the lack of insurance is the phenomenon of ‘heirs property,’ where homes have been passed down through generations without being formally transferred. According to Cornelissen, about a third of these homes lack insurance coverage. ‘These homes have been passed down for generations to pass on wealth, and we find they’re unprotected. They’re really vulnerable when a storm or disaster happens,’ she explained.
The issue of uninsured homes is not limited to St. Louis; Cornelissen’s research indicates that more than 6 million homeowners across the United States lack insurance. This leaves many families vulnerable to losing everything in the event of a disaster.
As the community begins to recover from the tornado, the need for insurance coverage and disaster preparedness has become a pressing concern. The situation highlights a broader national issue that affects not just homeowners in St. Louis, but communities across the country.
