House bill seeks to protect insured homeowners after disasters

The House Insurance Committee held a public hearing Monday, April 13, for a bill that aims to help homeowners handle insurance claims during disasters.

House Bill 3328, introduced by Rep. David Casteel, R-High Ridge, would instate the "Missouri Disaster Mediation Act" and the "Missouri Stronger Homes Act," along with other changes to home insurance.

"The bill is a comprehensive consumer-focused reform that prepares Missouri families in our insurance market for the next major disaster while encouraging stronger, more resilient homes," Casteel said.

The Missouri Disaster Mediation Act would allow homeowners to meet with a mediator and their insurer if a dispute arises over insurance claims. The purpose of this is to settle any disagreements between homeowners and insurance companies over disaster claims filed by homeowners.

The insured homeowner would have to ask for mediation within a 60-day period after a claim is denied. If a homeowner claims damage due to a disaster, the insurer would be required to notify the homeowner of their right to mediation. The insured homeowner would need to submit a request, and the insurance company would be responsible for the expenses of hiring a mediator. The mediator would act independently of the insurer.

"The purpose of the mediation program is mainly for a faster, cheaper, less formal, nonadversarial discussion between the insurance company and the homeowner for their insurance disputes," Steven Marion, legislative director for the Missouri Department of Commerce and Insurance, said during his testimony in support of the bill.

The Missouri Stronger Homes Act would provide grant money to Missouri residents to retrofit their homes to withstand natural disasters.

Money to fund these upgrades would come from the Missouri Stronger Homes Fund, which would be annually funded by a $12 million transfer from the Insurance Dedicated Fund. This fund comes from fees paid by insurance companies to the Department of Commerce and Insurance "for the operation of insurance regulation," Marion said.

Casteel said the fund would ensure "a stable, long-term funding source for strengthening owner-occupied homes before and after disasters."

The bill raised questions from some committee members during the hearing over how the legislation could impact residents of St. Louis in light of a tornado that struck the city in May 2025.

Casteel believes the mediation program would highlight problems with claims or any other confusion that may have occurred after the St. Louis disaster.

The bill would also change provisions on public adjusters, but that portion of the bill is still being workshopped.