A Moment of Fear in St. Louis
In the aftermath of devastating storms that struck her north St. Louis residence, Margaret Williams recalled the alarming moment that compelled her to seek shelter in her basement. “I heard a loud boom, and the house trembled,” stated Williams, gesturing toward her home of nearly half a century. “This is a brick house, and it was shaking as if it were a cardboard box.”
During the tumultuous events of May 16, she took refuge in her basement on Walton Avenue in the Fountain Park area, crouched between her laundry appliances as the storms raged above. “It felt like two or three massive trucks were revving their engines,” Williams recounted, shuddering at the terrifying sounds that echoed around her. “It was a series of bangs and crashes—nothing I’ve ever dealt with before.”
Surveying the Damage
After the storms had passed, Margaret and her husband Melvin, who weathered the storm at his nearby auto repair shop, surveyed the wreckage of their early 1900s home. Broken windows and deteriorating front steps were merely the beginning of their troubles; most of the rear of the house had completely caved in.
Standing outside their damaged residence, the couple hesitated to broach a significant topic: their lack of homeowners insurance. “Mel and I didn’t discuss it immediately,” reflected Williams. “It took a conversation with our son to bring it up.”
There’s little data on the number of residents without homeowners insurance in St. Louis, leaving many uncertain about how many were caught in similar situations during the recent storms. On May 22, the Missouri Department of Commerce and Insurance estimated that up to 67% of homes in three north city ZIP codes might lack coverage:
- 63115 – covering Penrose and parts of Greater Ville as well as O’Fallon.
- 63105 – College Hill.
- 63113 – including the Ville, Vandeventer, and Kingsway East.
The department further indicated that as many as 50% of homeowners in other affected regions might also be uninsured. Using American Community Survey data along with its own analysis, the department acknowledged the estimated figures could shift over time.
Angela Nelson, the department’s director, noted that existing tracking of insurance policies could assist in recovery operations. “This is an initial estimate since predicting exact numbers is challenging,” she emphasized. “We believe we’re providing a vital service by offering these insights.”
The Challenge of Coverage
Reports indicate that around 7% of Missouri residents do not possess homeowners insurance, a figure that jumps to 11% according to some estimates. While lenders typically require mortgage holders to have insurance, it is not a legal requirement in Missouri outside of that requirement.
Sharon Cornelissen, director of housing for the Consumer Federation of America (CFA), noted that approximately 6 million homeowners across the nation lack coverage, totaling over $1.6 trillion in unprotected property value. “Home ownership is traditionally viewed as the American dream, but without adequate protection, that dream can quickly turn into a nightmare,” she warned.
Overcoming Financial Hurdles
Having recently paid off their mortgage before the pandemic, the Williamses, like many homeowners, intended to keep a homeowners insurance policy. “When we paid off the mortgage, we searched for insurance independently since we had originally obtained it through our lender,” Margaret recalled.
This search, however, uncovered significant financial barriers. Insurers presented high premiums, necessitating extensive repairs before they would issue a policy. For instance, Williams received a quote of more than $20,000 just for replacing their windows. Additionally, other insurers echoed similar estimates, complicating the couple’s quest for affordable coverage.
After seeking a loan from their credit union based on the value of their mortgage-free home, the amount offered fell short of their needs for repairs, prompting the couple, who had saved for years to fix their house, to begin gathering estimates just before disaster struck.
The Impact of Insurance Disparities
Many residents of St. Louis, particularly in neighborhoods affected by discriminatory practices like redlining, face stark contrasts in insurance coverage. Areas north of Delmar Boulevard, including Fountain Park, illustrate these disparities. City officials estimate that around 5,000 homes were destroyed in the recent storm, impacting communities on both sides of Delmar Boulevard.
A local Realtor remarked that a lack of insurance is “very common,” as conversations about insurance rates frequently arise among neighborhood residents. “Many people are in the same boat in our community,” Williams added, emphasizing a collective struggle.
Even without precise data, it’s understood that many homeowners within these neighborhoods grapple with increasing vulnerability due to uninsured homes. “Many residents are living on the edge, facing gradual deterioration of their homes or potentially losing everything to a disaster,” Cornelissen indicated, pointing out the national implications of this issue.
Rising Premium Costs
The trend of rising insurance premiums extends beyond state borders, with a recent report from the CFA revealing that homeowners insurance has surged from an average of $2,656 in 2021 to $3,303 in 2024—a dramatic 24% increase, significantly outpacing inflation rates.
States experiencing the steepest hikes include Utah (59%), Illinois (50%), and Arizona (48%). Various factors contribute to this rise, including the frequency of severe weather events, inflation, and heightened interest rates impacting real estate and consumer goods pricing.
Olgun Sahin, a finance professor, explained that insurance firms base their operations on expected future claims costs. “The balance of premiums collected versus claims is a straightforward equation,” he stated. “If the premiums don’t cover expected losses, companies risk losing money.”
Finding a Path Forward
With their home now rendered uninhabitable, Margaret and Melvin Williams face uncertainty regarding their future living arrangements. Post-storm, Melvin slept at his repair shop to protect against looters while Margaret stayed with family. A red notice soon appeared on their door, marking the house as unsafe.
Despite the hefty rebuilding costs estimated at $500 to $1,000 per square foot, there remains little hope of restoring their once-vibrant home. “Rebuilding something as expansive as our house would be prohibitively expensive,” Margaret analyzed. “I fear it will have to come down entirely.”
The community’s recovery from the storms remains uncertain as local officials, residents, and advocates contend with the underlying issues of insurance coverage and property vulnerability. The hope is to rekindle the vibrancy of the Fountain Park neighborhood, preserving its beauty and resilience through potential collaborative efforts to restore and enhance the community.
