Missouri lawmakers are discussing a new bill that could help homeowners and renters dealing with the fallout from severe weather. This proposed legislation, introduced during a special session, aims to provide tax deductions for the deductibles paid on home insurance to cover storm damage repairs.
The bill is part of a larger agenda that also includes plans for disaster housing grants and affordable housing initiatives. Governor Mike Kehoe called for this special session on May 30, following a series of extreme weather events that have caused significant destruction across the state. Missouri has faced tornadoes, large hail, and flooding in recent months, leading to widespread damage.
In a statement, Governor Kehoe emphasized the importance of supporting residents in need and investing in the state’s future. He urged legislators to take this opportunity to address pressing issues.
If the bill passes, homeowners and renters could reduce their tax liability by the amount of their insurance deductible for damages related to severe weather. However, there would be a cap of $5,000 per household each year for each disaster. To qualify, the property must be the primary residence and located in an area affected by a presidential disaster declaration.
Alongside the tax deduction proposal, lawmakers are also looking at ways to expand access to disaster housing response grants. The goal is to make it easier and quicker for property owners to receive the aid they need.
The push for this legislation comes at a time when Missouri residents are facing challenges due to recent disasters. In May alone, State Farm reported over 4,100 claims for home and auto damage following severe weather events. St. Louis was particularly hard hit, with around 5,000 buildings damaged or destroyed by an EF-3 tornado.
In 2024, data showed that the largest homeowners insurance providers in Missouri included State Farm Group, American Family Insurance Group, Liberty Mutual, Allstate, and Travelers, with State Farm holding the largest market share.
As the discussions continue, many are hopeful that this legislation will provide much-needed support for those recovering from the impacts of severe weather.