The Best Home Insurance in Minnesota ( 1057 )

The average cost of homeowners insurance in Minnesota is $1,845 per year, or about $154 per month, according to a NerdWallet analysis. That’s slightly more than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in Minnesota. Our sample rates are for a homeowner with good credit and $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible. Your rates will be different.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

America’s largest home insurer celebrated its 100th anniversary in 2022. One useful endorsement you may be able to add to a State Farm policy is an inflation guard rider, which automatically increases your policy limits to make sure your coverage doesn’t fall short.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

Chubb policyholders may also be able to take advantage of the company’s HomeScan service, which uses infrared cameras to look for problems behind the walls of your home.

Founded in Madison, Wisconsin, American Family receives fewer consumer complaints than expected for a company of its size. You may be able to customize your policy with optional add-ons such as identity theft, equipment breakdown or service line coverage, which pays for repairs to water, power or other underground lines that run to your house.

Homeowners may be able to save on their premiums by installing smart-home devices, bundling multiple policies or setting up automatic payments.

Country Financial has three different levels of homeowners coverage to help you choose the package that’s best for you. You also have the option to add extra coverage for the structure of your home, in case inflation drives up the cost of rebuilding more than you expect.

Country Financial sells homeowners insurance through local representatives. The company has drawn far fewer complaints than expected to state regulators.

How much does homeowners insurance cost in Minnesota?

The average annual cost of home insurance in Minnesota is $1,685. That’s 7% less than the national average of $1,820.

In most U.S. states, including Minnesota, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Minnesota, those with poor credit pay an average of $3,985 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s more than double the rate of those with good credit.

The average cost of homeowners insurance in Minnesota by city

What you pay for homeowners insurance in Minnesota depends on where you live. For example, the average cost of home insurance in Minneapolis is $1,845 per year, while homeowners in Rochester pay $1,530 per year, on average.

What to know about Minnesota homeowners insurance

Minnesotans are very aware of the harsh weather that can accompany living in the state. When shopping for homeowners insurance in Minnesota, you’ll want to consider the potential damage from severe weather, such as winter storms, hail, flooding and more.

If you aren’t sure about what your policy covers, contact your insurer to get more details.

Winter storms

Minnesota is known for its severe winters, including heavy snowfall, ice storms and freezing temperatures. These winter storms bring with them a host of issues, from fallen trees and collapsed roofs to burst pipes.

A standard homeowners policy typically covers damage from winter storms, but it’s important to review your policy to make sure you have adequate coverage. You’ll also need to make sure you’re taking the appropriate steps to protect your home. For example, damage from frozen pipes may not be covered if you leave your heat off while out of town.

Some types of winter weather damage might require extra coverage. For example, your homeowners policy likely won’t pay for damage due to a backed-up drain or sewer caused by snowmelt. You’ll need to add that coverage to your policy.

Hail

Large hail storms can significantly damage your property, and Minnesota sees plenty of them. While your insurance policy may cover hail damage, it’s important to review it carefully, as many Minnesota homeowners are now finding this coverage only kicks in when there’s been substantial damage to their home’s siding or roof.

You may also have a separate deductible for wind or hail damage. These deductibles are often either a flat rate, such as $1,000, or a percent of your dwelling coverage. For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for hail or wind claims. So if your house has $250,000 worth of dwelling coverage, you’d have to pay for the first $2,500 of hail damage yourself.

Tornadoes

Although tornadoes are uncommon in Minnesota, they do happen, particularly in the southern part of the state that’s closest to Tornado Alley. Tornadoes can cause extensive damage to homes, including roof damage, broken windows, and structural damage.

Standard homeowners insurance will cover tornado damage. However, you should still review your policy carefully, as there may be a separate deductible for wind damage.

Flooding

Minnesota is known as the Land of 10,000 Lakes. That, combined with heavy rain and snowmelt, means flooding is a key consideration for Minnesota homeowners. However, most standard homeowners insurance policies do not cover flood damage. In Minnesota, 40% of flood claims came from outside high-risk areas. As a result, you may want to consider purchasing separate flood insurance coverage through the National Flood Insurance Program.

To find out if you’re at risk, check out the Federal Emergency Management Agency’s flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is considered low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.

Remember that while you can buy flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Wildfires

Dry conditions can lead to wildfires in heavily wooded areas of the state, which can be devastating to homeowners in wildfire-prone areas. Homeowners insurance typically covers damage from fires, but it’s important to review your policy to ensure adequate coverage and to take steps to protect your home if it could be at risk.

Pay particular attention to your dwelling coverage limit. This is the amount the insurance company will pay to rebuild your house. A significant fire can destroy your whole home, so review your policy and discuss it with your insurance agent to be sure your coverage can help you rebuild if necessary.

Minnesota insurance department

The Minnesota Commerce Department’s Insurance Division oversees the state’s insurance industry and provides consumer protection and information. For example, it provides resources on what’s frequently covered under homeowners insurance policies and tips for filing a claim with your insurance.

The Minnesota Commerce Department’s Insurance Division is also your go-to location to file a complaint against your insurance company through its online portal. If you have questions about filing a complaint, contact the customer service department via email at consumer.protection@state.mn.us or toll-free at 800-657-3602.