MO| The Missouri Department of Commerce and Insurance has issued Bulletin 25-05 in response to the May 16, 2025, tornado in St. Louis, announcing the waiver of the city’s insurance claim holdback ordinance for properties that sustained 50% or more damage within designated tornado-impacted neighborhoods. This temporary policy shift, effective immediately and lasting through December 31, 2026, allows insurers to remit full claim payments directly to affected property owners in the specified areas, rather than withholding 25% of proceeds as previously mandated by city ordinance and state law.
Key Points:
- The waiver applies only to properties in the defined “Tornado Impact Area” damaged by the May 16, 2025, tornado, allowing full insurance payouts to insureds without the usual 25% holdback requirement.
- This measure is intended to expedite recovery for tornado-impacted residents and does not affect properties damaged by other events or outside the specified neighborhoods; standard holdback procedures remain in place elsewhere.