If you’re a property owner in the Midwest, you’ve likely noticed insurance rates creeping upward—or in some cases, spiking sharply. The once-stable heartland is now beginning to feel the pressure that coastal property owners have been dealing with for years.
The Property Owner’s New Reality
Owning property in the Midwest has long been associated with stability, moderate weather, lower risks, and affordable insurance. But in recent years, property owners have noticed something different: premium hikes, stricter underwriting requirements, and, in some cases, insurers pulling out altogether.
It’s a shift that has many asking: is the same disruption affecting the coasts now reaching us in the Midwest? The short answer is yes, and it’s changing how property owners protect their investments.
What’s Driving the Shift?
Property insurance disruption is no longer just a coastal concern. While hurricanes, wildfires, and rising sea levels dominate headlines in Florida and California, the Midwest is quietly experiencing its own insurance crisis.
Several factors are contributing:
- More Frequent Severe Weather: Hailstorms, tornadoes, straight-line winds, and even inland flooding are on the rise across the region.
- Rising Reinsurance Costs: Global insurers that backstop U.S. carriers are increasing rates, impacting local availability and pricing.
- Inflation and Construction Costs: Repairs cost more than ever, making every claim more expensive to resolve.
- Litigation and Liability Trends: Higher settlements and legal fees are driving up premiums and changing underwriting appetite.
The result? Property owners in states like Missouri, Illinois, and Iowa are seeing some of the same limitations coastal owners faced just a few years ago.
Coverages Most Affected
While the most noticeable disruption has been in property insurance itself, other related coverages are also feeling the strain. Here’s where property owners should pay close attention:
Property Insurance
- Shrinking availability in certain ZIP codes
- Switches from replacement cost to actual cash value (ACV)
- More exclusions for wind, hail, and water-related damage
- Pressure on older roofs or non-updated structures
Commercial Property
- Stricter underwriting for vacant buildings and rental portfolios
- Higher deductibles, especially for weather-prone assets
- Greater scrutiny on maintenance and risk mitigation practices
Liability and Umbrella
- Increased rates for businesses with customer-facing locations
- More exclusions added to general liability forms
Inland Marine and Equipment
- Higher premiums for contractors and agricultural operators
- Tighter terms around mobile equipment or tools exposed to theft/weather
What This Means for Midwest Property Owners
Whether you own a home, a business facility, farmland, or rental properties, these disruptions mean you’re likely facing:
- Higher premiums year-over-year
- Less coverage for more cost
- More time-consuming renewals or quote requests
- Difficulty insuring older or unique buildings
It’s no longer enough to renew your policy and move on. Property owners must now engage more actively in understanding their coverage, evaluating risks, and comparing options across the marketplace.
What Can Property Owners Do Now?
While the disruption is real, there are steps you can take to protect your investments and minimize surprises.
Smart strategies include:
- Partner with an independent insurance agency: An agency that works with multiple carriers can shop your risk and advocate for your needs.
- Proactively maintain properties: Insurers are more willing to write or renew policies when roofs, plumbing, and wiring are up to date.
- Bundle smartly: Placing property, liability, and auto with the same provider can sometimes unlock discounts or improve leverage.
- Understand your deductibles: Some policies now separate wind/hail deductibles from general losses—know your exposure.
- Review your coverage regularly: What worked last year may not be available today. Annual reviews are no longer optional.
The BPJ Difference
At BPJ Insurance, we don’t believe insurance is ever a “set it and forget it” decision—especially not today. As an independent, employee-owned agency, our team is motivated by your success. We actively monitor market shifts and bring proactive solutions to the table.
Whether you’re a homeowner in Springfield, a landlord with multiple properties across Missouri, or a business owner managing a facility in a weather-exposed area, our goal is simple: find the best available coverage at the most competitive rate, year after year.
Don’t wait until your renewal surprises you.
Let BPJ help you review your policies, compare options, and identify risk mitigation strategies that keep you covered, whatever the market may bring.
Contact us today to get started.