This spring, Missouri has faced a relentless wave of severe weather. Tornadoes, flooding, and baseball-sized hail have left behind a trail of damaged homes, shuttered businesses, and rising insurance claims. In May alone, State Farm reported over 4,000 home and auto claims in the state, according to Insurance Business Magazine.
Now, state lawmakers are exploring whether a new kind of relief could ease the financial burden for families trying to rebuild.
A bill under consideration during a special legislative session would offer up income tax deductions for homeowners and renters who paid insurance deductibles on storm damage repairs. The proposal comes on the heels of a major disaster declaration approved by President Donald Trump on June 9.
“We call on legislators to use this special session as a rare opportunity to support our vulnerable neighbors in their time of need,” said Gov. Mike Kehoe at a press conference announcing the special session. “This work is too important to leave unfinished.”
The proposal
The governor’s proposal aims to ease the financial strain on storm-struck Missourians by offering an income tax deduction of up to $5,000 per disaster, per year. The deduction would apply to out-of-pocket insurance deductiblespaid by homeowners and renters for damage caused by severe weather events.
The out-of-pocket deductible is the amount a policyholder needs to pay for covered damage before insurance starts to cover its share of the costs. There’s no standard deductible, but there has been a trend in recent years of policyholders raising their deductibles to offset the cost of rising premiums.
That trend combined with Missouri’s vulnerability to natural disasters could make Kehoe’s proposed deduction a valuable tool for homeowners.
To qualify, the damaged property must be the taxpayer’s primary residence and located in an area covered by a presidential disaster declaration—like the recent EF-3 tornado that hit St. Louis. The goal is to offer meaningful relief to those rebuilding after federally recognized disasters.
In addition to the tax break, Kehoe has proposed a $25 million expansion of the Missouri Housing Trust Fund. The funding would broaden eligibility and streamline Disaster Housing Response Grants, helping to deliver faster, more flexible emergency housing aid to those displaced by storms.
Why it matters for homeowners
Missouri homeowners have been pummeled by extreme weather this year. On May 16 alone, the city of St. Louis estimates that 10,000 buildings were damaged, with affected residents becoming eligible for FEMA assistance only as recently as June 10.
At the same time, insurance premiums and deductibles continue to rise nationwide. In many cases, homeowners are facing $1,000 to $5,000 in out-of-pocket costs just to begin repairs. The governor’s proposed tax deduction could help offset that financial burden and encourage more residents to carry coverage in the first place.
That encouragement is badly needed. Nearly 1 in 7 homes in Missouri is currently uninsured, according to estimates from LendingTree. For families on the fence about maintaining a policy, the prospect of a state tax break could be a powerful incentive.
Who would qualify—and who might miss out
The proposed tax deduction would be available to homeowners and renters who pay out-of-pocket insurance policy deductibles for damage caused by severe weather. To qualify, the affected property must be:
- A primary residence,
- Located in an area covered by a presidential disaster declaration, and
- The individual must be filing Missouri state income taxes.
The deduction would be capped at $5,000 per household, per disaster, per year.
While the proposal is designed to support a broad group of storm-impacted residents, it might offer more relief to some than others. Households with low or no state income tax liability might see limited benefits. Renters who carry minimal coverage and anyone who doesn’t meet the disaster zone requirement might not be eligible.
Will it help?
If passed, the tax deduction could provide financial relief to residents who are facing rising insurance costs and steep deductibles following this year’s severe weather events. For some, it might help offset the burden of rebuilding after tornadoes, flooding, or hailstorms.
But the policy has limits. Residents who are uninsured, underinsured, or do not file taxes are the most likely to fall through the cracks. But they might be bolstered by the Legislature’s broader efforts to support recovery in the Show Me State.
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