Creates provisions relating to insurance coverage for damage to siding on real property

2026 Regular Session Introduced by Jaclyn Zimmermann

When matching siding isn’t available, Missouri insurers must replace all siding for homeowners policies or payout full structure replacement for dwelling-owners policies starting 2

Public Hearing Completed (H)

#businessandcommerce #insurance-property

Purpose and Intent

HB 2250 proposes to expand insurance coverage requirements for damage to siding on real property. Starting January 1, 2027, insurers offering homeowners’ or dwelling-owners’ insurance in Missouri would be required to provide coverage for siding damage under specific rules when matching replacement siding is not reasonably available.

Key Provisions

Scope and definitions

Applies to insurers offering or issuing homeowners’ or dwelling-owners’ insurance policies delivered in Missouri on or after January 1, 2027.
Defines terms for consistency with existing law (homeowners’ and dwelling-owners’ insurance; “insurer” as licensed insurers author to write these policies in Missouri).

Partial damage scenarios (when matching siding is not reasonably available)

If siding damage affects only part of the siding on a structure and the replacement siding that matches adjacent siding in quality, color, and size is not reasonably available, the insurer must do the following:
Homeowners’ insurance policies (replacement cost value): Replace all siding on the structure to achieve a reasonably uniform appearance.
Dwelling-owners’ insurance policies (actual cash value): Pay an amount equal to what the insurer would have paid if the covered damage had occurred on all siding on the structure (i.e., payout amount based on total siding replacement).

Who is Affected

Insurers offering or issuing homeowners’ or dwelling-owners’ insurance in Missouri, effective for policies delivered or renewed on or after January 1, 2027.

Policyholders: homeowners with homeowners’ insurance policies and owners with dwelling-owners’ (commercial or residential) policies that cover residential property siding damage.

Financial and Administrative Impacts

Estimated fiscal impact: The Missouri Department of Commerce and Insurance indicates the bill’s provisions can be absorbed within current appropriations; no net state cost is expected for FY 2027–FY 2029. Local and federal funding impacts are projected to be negligible or zero.

Industry impact: Insurance companies may face increased costs due to mandatory replacement of all siding or higher payout amounts in certain cases, depending on policy type and the availability of matching siding.

Administrative timeline: If enacted, the new requirement takes effect for policies delivered, issued for delivery, continued, or renewed on or after January 1, 2027.

Additional Notes

The fiscal note indicates no general revenue impact and no changes to FTE are anticipated; the primary effect is on insurance policy terms and potential pricing or coverage adjustments by insurers.

The bill mirrors concepts from prior legislation (e.g., HB 908 of 2025) and follows standard legislative process, with public hearing and committee review noted.

Overall, HB 2250 sets a clear rule: when siding damage cannot be matched, insurers must either replace all siding for homeowners’ policies or provide a full-structure payout for dwelling-owners’ policies, beginning in 2027.

Bill