Finding the Best Homeowners Insurance in Minnesota
Even during the COVID-19 pandemic, people have been and are still buying and selling homes. What's more surprising is that Minnesota's average sale price rose in May by 1.2% (according to twincities.com). Whether you're a first-time buyer or you're shopping around for cheaper providers of home insurance, a quick search online for Minnesota homeowners insurance quotes will show you all kinds of reviews, quote providers and companies offering you their insurance. Going through this overwhelming amount of information can be time-consuming. With that being said, how can you easily find the best homeowners insurance in Minnesota? Well, we've sifted through the different policy providers available in your state and put the essential information you need to know here. If you're looking for cheap homeowners insurance in Minnesota or thinking of lowering your coverage amount to reduce cost, it's worth thinking about what the potential risks are in Minnesota, where some parts of the Land of 10,00 Lakes are now more prone to flooding, and severe wind and snowstorms. You would be right in thinking that you could save on your insurance premiums by taking out less coverage, but many homeowners in Minnesota who have taken out less coverage and who have needed to make claims on their home insurance haven't been able to cover the damage or replacement costs because these came to more than their coverage amount. So, how much coverage should you take out? And who is the best provider for you? Let us guide you towards finding the right policy that suits your needs.
| Minnesota Homeowners Insurance Cost Broken Down | Price |
|---|---|
| Yearly Cost of Homeowners Insurance in Minnesota | $1,553.00 |
| Costs Per Month for Homeowners Insurance in Minnesota | $129.42 |
How Much is Homeowners Insurance in Minnesota
When you purchase home insurance, you need to decide how much dwelling coverage you want to take out and choose a deductible amount. The deductible is the amount you would pay before your policy covers the rest. Dwelling coverage pays the cost of repairing your home. It’s important to insure your home based on its replacement cost. That’s the amount you need to rebuild it if it’s destroyed or damaged, and this is not equal to its market value. Taking out coverage equal to your home’s replacement cost offers more protection because the cost of building a home is normally more than its market value. The average cost of home insurance in Minnesota is $2,121, or $177 per month, which is considerably higher than the national average of $1,288, or $107 per month. The most expensive city for homeowners insurance in Minnesota is New Brighton, with an average annual premium of $2,082, or $174 per month; and the least expensive city is Rochester, where the average annual premium is $1,823, or $152 per month. It’s also worth remembering that homeowners insurance doesn’t cover damages suffered as a result of floods. You will need to purchase flood insurance through the National Flood Insurance Program.
| City in Minnesota | Monthly Costs | Yearly Costs |
|---|---|---|
| Minneapolis, MN | $171.17 | $2,054.00 |
| St. Paul, MN | $169.42 | $2,033.00 |
| Rochester, MN | $151.92 | $1,823.00 |
| Duluth, MN | $153.08 | $1,837.00 |
| Bloomington, MN | $165.00 | $1,980.00 |
| Brooklyn Park, MN | $169.50 | $2,034.00 |
| Plymouth, MN | $166.58 | $1,999.00 |
| Maple Grove, MN | $170.17 | $2,042.00 |
| Woodbury, MN | $166.67 | $2,000.00 |
| St. Cloud, MN | $166.25 | $1,995.00 |
| Eagan, MN | $165.25 | $1,983.00 |
| Lakeville, MN | $166.92 | $2,003.00 |
| Blaine, MN | $160.42 | $1,925.00 |
| Eden Prairie, MN | $163.00 | $1,956.00 |
| Coon Rapids, MN | $162.50 | $1,950.00 |
| Burnsville, MN | $171.83 | $2,062.00 |
| Apple Valley, MN | $166.92 | $2,003.00 |
| Minnetonka, MN | $171.00 | $2,052.00 |
| Edina, MN | $161.25 | $1,935.00 |
| St. Louis Park, MN | $168.00 | $2,016.00 |
| Moorhead, MN | $162.25 | $1,947.00 |
| Mankato, MN | $160.33 | $1,924.00 |
| Shakopee, MN | $167.00 | $2,004.00 |
| Maplewood, MN | $167.92 | $2,015.00 |
| Cottage Grove, MN | $166.08 | $1,993.00 |
| Roseville, MN | $165.58 | $1,987.00 |
| Richfield, MN | $161.42 | $1,937.00 |
| Inver Grove Heights, MN | $172.00 | $2,064.00 |
| Andover, MN | $159.50 | $1,914.00 |
| Savage, MN | $170.25 | $2,043.00 |
| Brooklyn Center, MN | $158.42 | $1,901.00 |
| Oakdale, MN | $165.92 | $1,991.00 |
| Fridley, MN | $157.58 | $1,891.00 |
| Shoreview, MN | $165.92 | $1,991.00 |
| Ramsey, MN | $170.33 | $2,044.00 |
| Prior Lake, MN | $167.83 | $2,014.00 |
| Winona, MN | $160.83 | $1,930.00 |
| Chaska, MN | $168.83 | $2,026.00 |
| White Bear Lake, MN | $166.42 | $1,997.00 |
| Owatonna, MN | $164.92 | $1,979.00 |
| Chanhassen, MN | $167.00 | $2,004.00 |
| Champlin, MN | $163.50 | $1,962.00 |
| Austin, MN | $157.50 | $1,890.00 |
| Elk River, MN | $168.67 | $2,024.00 |
| Rosemount, MN | $168.33 | $2,020.00 |
| Faribault, MN | $167.17 | $2,006.00 |
| Farmington, MN | $160.42 | $1,925.00 |
| Crystal, MN | $156.00 | $1,872.00 |
| New Brighton, MN | $173.50 | $2,082.00 |
| Hastings, MN | $162.75 | $1,953.00 |
Minnesota Homeowners Insurance Laws
Home insurance is not required by law in the state of Minnesota. If you financed or will be financing your home with a mortgage, your mortgage provider may still require you to purchase homeowners insurance to protect their financial interest in your property. Minnesota homeowners insurance laws prevent insurance companies from altering rates based on several conditions. If you have previously declined coverage, the law protects you from being penalized with higher rates due to this. There are also other rules and regulations in place to protect homeowners from being denied coverage. When it comes to the age of a home, insurance companies must follow the guidelines set in place under Minnesota's law. Homeowners Insurance providers are well-aware of these guidelines and know the circumstances on which a homeowner may rightfully be denied coverage. For example, an older home with an updated wiring system and other similar renovations couldn't be denied coverage based on the original construction date.
What Does Homeowners Insurance Cover in Minnesota
Homeowners insurance providers in Minnesota typically offer three kinds of policies. HO-1 and HO-2 insure the property (often referred to as the “dwelling”), other structures, and personal property against a list of named “perils,” or causes of loss, such as fire, lightning, etc. HO-1, the most basic policy, usually covers 11 perils. HO-2 offers a broader range of coverage. The third type of policy, normally termed HO-3, includes an “all risk” clause covering nearly all perils or causes of loss, with specific exceptions, which almost always include flood, earthquake, war, and nuclear hazard. There is also the liability portion of the homeowner policy, which protects against a claim or lawsuit from someone who is injured on your property. It may also include damage to that person’s property if it is caused by something you do or for which you are responsible. The liability portion of your homeowner’s policy pays for damages when you are liable for the injury, pays the medical bills if the person is injured, and provides legal expenses to defend you.
| Costs of Home Insurance in Minnesota by County | Monthly Average Costs | Yearly Average Costs |
|---|---|---|
| Anoka County, MN | $164.92 | $1,979.00 |
| Blue Earth County, MN | $160.33 | $1,924.00 |
| Carver County, MN | $167.92 | $2,015.00 |
| Clay County, MN | $162.25 | $1,947.00 |
| Dakota County, MN | $167.04 | $2,004.50 |
| Hennepin County, MN | $165.21 | $1,982.50 |
| Kings County, MN | $163.96 | $1,967.50 |
| Mower County, MN | $157.50 | $1,890.00 |
| Olmsted County, MN | $151.92 | $1,823.00 |
| Ramsey County, MN | $168.13 | $2,017.50 |
| Rice County, MN | $167.17 | $2,006.00 |
| Scott County, MN | $168.36 | $2,020.33 |
| Sherburne County, MN | $168.67 | $2,024.00 |
| St. Louis County, MN | $153.08 | $1,837.00 |
| Stearns County, MN | $166.25 | $1,995.00 |
| Steele County, MN | $164.96 | $1,979.50 |
| Washington County, MN | $166.38 | $1,996.50 |
| Winona County, MN | $160.83 | $1,930.00 |
Top Rated Homeowners Insurance Companies in Minnesota Based on Ratings
Top-rated home insurance companies in Minnesota often have a high A.M. Best financial strength rating, which means they’re able to handle any sort of claim, independent of its size. These providers are often large, financially stable companies. Furthermore, a high J.D. Power rating is reflective of strong customer satisfaction. State Farm, a financially solid company, has an A++ A.M Best financial strength rating and has around 25% of the market share for homeowners insurance. State Farm homeowners insurance in Minnesota also has an 825 out of 1000 J.D. Power rating. Auto-owners insurance also has an A grade A.M Best rating and an 822 out of 1000 J.D. Power rating. The limitation with auto-owners is their lack of online capabilities. You can pay bills and track claims online; however, you have to call them to ask for a quote and purchase a policy. You also need to contact them to make a claim. AAA is also another highly rated homeowners insurance company in Minnesota. It has an A grade A.M. Best financial rating and an 819 out of 1000 J.D. Power rating. If you’re already an AAA member, you can access more of their available discounts. Additionally, if you’re over 50, you could qualify for further discounts.
| Minnesota Home Insurance Company | JD Power Rating | NAIC Rating |
|---|---|---|
| State Farm Ratings for Homeowners Insurance in Minnesota | 4/5 | 0.2 |
| American Family Ratings for Homeowners Insurance in Minnesota | 3/5 | 0.69 |
| Farmers Ratings for Homeowners Insurance in Minnesota | 3/5 | 0.46 |
| Allstate Ratings for Homeowners Insurance in Minnesota | 3/5 | 0.34 |
| Liberty Mutual Ratings for Homeowners Insurance in Minnesota | 2/5 | 0.53 |
| Travelers Ratings for Homeowners Insurance in Minnesota | 2/5 | 0.3 |
| Auto Club Group Ratings for Homeowners Insurance in Minnesota | 3/5 | 0.99 |
| North Star Ratings for Homeowners Insurance in Minnesota | N/A | 0.39 |
| Chubb Ratings for Homeowners Insurance in Minnesota | 2/5 | 0.14 |
| COUNTRY Ratings for Homeowners Insurance in Minnesota | 3/5 | 0.13 |
How to Lower Homeowners Insurance in Minnesota
Just because you want to lower the cost of your homeowner's insurance policy doesn't necessarily mean that you need to opt for less coverage. With falling relative incomes and piggy bank savings drying up at these times of hardship, there are a few things you can do to lower your insurance premiums. Here we outline 5 things that you can do to lower your homeowner's insurance in Minnesota without reducing coverage. Apart from the extra level of safety, you can benefit from refurbishing your plumbing, wiring, and roofing to lower the cost of your homeowner's insurance. What's more, is that it can increase the market value of your home--a worthwhile investment. Ask for a higher deductible amount. By paying a greater deductible amount, you can reduce your premiums. Instal some home security systems. Not only can this add value to your home, but it can reduce your premiums. Ask your current insurance provider about any discounts or loyalty schemes they offer. Sometimes providers offer discounts if you bundle together your homeowners and auto insurance. Get a quote from another company if your current provider can't offer you anything to reduce your premiums without lowering your coverage amount. The home insurance market is a competitive one, which drives down prices, so shop around and find a better deal.
Compare Homeowners Insurance in Minnesota Before Buying
Shopping for the best homeowners insurance in Minnesota starts with making sure you’re taking out enough coverage; this depends on how much it would cost to rebuild your home if the worst was to happen. You’ll also need to consider how much of the deductible you’re able to cover in the event of a claim and whether you need extra coverage for valuables and other things in your home. By looking at what different providers offer, you might also want to purchase add-ons for your policy and ensure you’re covered for everything. This gives you peace of mind, safe in the knowledge that your property and items are covered. Comparing homeowners insurance quotes in Minnesota allows you to make the most informed decision about which company to go with and for you to find the most suitable policy for you and your home. We are sure that with the metrics we have used to compare different companies, such as the A.M. Best and J.D. Power ratings, you can find a suitable and affordable homeowner insurance company for your home in Minnesota.