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Senate advances floor substitute to cap adjuster fees, create Missouri Stronger Homes fund
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Summary
Senators debated a floor substitute that would tighten public-adjuster rules, limit assignment-of-benefits practices, create a Missouri Stronger Homes Fund seeded with $12 million, and add a voluntary disaster-mediation option for disputed claims after declared emergencies.
A Missouri Senate substitute advanced on the floor would tighten consumer protections in the state’s property-casualty insurance laws and create a new grant program aimed at making homes more resilient to severe weather. Senator from the twentieth, the bill’s floor sponsor, described the package as “a comprehensive forward-looking bill that strengthens consumer protections, reduces fraud, and meaningfully invests in making Missouri homes more resilient.”
The substitute would cap fees public adjusters charge during declared emergencies, require clearer written disclosures and a contact path to the Division of Commerce and Insurance (DCI), and curb assignment-of-benefits arrangements that supporters said have driven fraud and higher claim costs in other states. It also contains an initial Missouri Stronger Homes Fund deposit of $12,000,000 and a $2,000,000 annual appropriation for up to 10 years to finance grants and risk-reduction projects such as roof and structural reinforcements in single-family primary residences. The sponsor said the fund is financed by insurers and not general-tax revenue.
The text would create a voluntary Missouri Disaster Mediation Act to give homeowners a non‑adversarial option to resolve disputed claims above a stated threshold (the sponsor said $5,000 was the target figure), with parties retaining the right to go to court if mediation fails. Supporters said mediation could speed settlements and reduce litigation costs.
Senators pressed the sponsor on details including eligibility limits, the program’s sunset clause (a planned 10-year review), and how DCI would implement and enforce the new anti‑fraud authorities. Senator from Dallas said the bill “provides essential safeguards for consumers at a moment when they’re most vulnerable,” while other lawmakers asked for clarifications about program administration and funding mechanics.
The Senate took the bill up for perfection and placed portions of the package on the informal calendar for further action. Sponsors said similar models exist in several other states; the sponsor said the investment could yield a large reduction in future loss claims through resilience projects.
Next steps: the substitute was perfected on the floor and moved through the Senate calendar; the measure faces further processing and possible amendments before final enactment.