06/12/2025 | Press release | Distributed by Public on 06/12/2025 16:23
Today, Mayor Cara Spencer signed Executive Order 85, ensuring that the City of St. Louis will no longer hold back 25% of insurance payouts for claims related to the May 16 tornado.
"St. Louisans looking to rebuild after the May 16 tornado deserve every chance to do so, and to do so quickly," said Mayor Spencer. "Waiving the 25% insurance payout holdback in this situation is the definition of a common-sense solution, and I am grateful to everyone involved in making this happen."
The issue stems from the State's holdback law, Section 67.410, RSMo., which was incorporated by the City in 1996 as Ordinance No. 63838, enabling the City to hold 25% of insurance payouts in escrow for severely damaged structures until the owner has either restored or demolished the structure.
This has historically been a helpful tool to keep property owners from taking insurance payouts and leaving empty shells to drag down city neighborhoods. However, the ordinance was never intended for natural disasters of this scale, in which the importance of giving property owners every tool available to rebuild takes clear priority.
Executive Order 85 instructs the city counselor and the building commissioner to waive enforcement of claims under the holdback ordinance against property owners in the impact area pertaining to the May 16 tornado until the end of 2026. It also directs the city counselor and building commissioner to collaborate with the Comptroller's Office as needed to support the release of any payouts that have already been held back.
"I am thankful that by working collaboratively with the Mayor's Office and other City and State entities, we were able to develop this common-sense solution to help ease the recovery efforts of those that are working every day to rebuild their lives after the May 16 tornado," said Comptroller Donna Baringer. "While the Comptroller's Office is committed to ensuring public funds are distributed in compliance with all applicable laws and accounting standards, we will seek to find allowable solutions to any and all bottlenecks that may hinder the City's recovery."
All insurers operating in Missouri will be notified of this waiver by the Missouri Department of Commerce and Insurance and instructed to make 100% of insurance payouts for claims related to the tornado.
This solution was decided after extensive collaboration between the Mayor's Office, Comptroller's Office, Building Division, City Counselor's Office, and the Missouri Department of Commerce and Insurance.