Key Takeaways
- American Family has the cheapest home insurance in Minnesota and the highest customer service scores.
- The average price of home insurance in Minnesota is 17% higher than the national average.
- The state’s average home insurance rates range from $173 a month in Rochester to $213 a month in Minneapolis.
In this article
Cheapest homeowners insurance companies in Minnesota
American Family offers the cheapest homeowners insurance in Minnesota, charging rates that average $2,078 a year, or $173 a month.
The next-best rates are available from Allstate, $179 a month, and Travelers, $186 a month.
| Company | Annual rate | Monthly rate |
|---|---|---|
| American Family | $2,078 | $173 |
| Allstate | $2,150 | $179 |
| Travelers | $2,230 | $186 |
| State average | $2,235 | $186 |
| State Farm | $2,282 | $190 |
| Farmers | $2,436 | $203 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
How much is homeowners insurance in Minnesota?
The average cost of homeowners insurance in Minnesota is $2,235 a year, or $186 a month. This amount is 17% higher than the national average of $159 a month.
Insurance companies evaluate several factors about you and your home to determine your rate. The most significant include:
- The age, location and construction features of your home
- Your neighborhood’s exposure to risks such as extreme weather and crime
- Your credit and insurance history
- Your home’s safety and security features
- Any discounts you may be eligible to receive
Since each insurance company weighs these factors differently and offers different discounts, you may get a much lower rate from one company than you do from others. This is why it’s best to compare quotes from multiple companies when you shop for a policy.
Get free home insurance quotes from top companies
Home insurance rates by deductible
Choosing higher deductibles is an easy way to reduce your home insurance rates. In Minnesota, increasing your deductible from $1,000 to $2,000 reduces your insurance rate by 12%.
| Deductible | Annual rate | Monthly rate |
|---|---|---|
| $500 | $2,461 | $205 |
| $1,000 | $2,235 | $186 |
| $1,500 | $2,120 | $177 |
| $2,000 | $1,968 | $164 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Home insurance rates by dwelling coverage limits
The dwelling coverage limit you choose for your policy also goes a long way toward determining your home insurance rate.
For example, a home insurance policy with a $350,000 dwelling limit costs 22% more than one with a $275,000 limit.
| Dwelling coverage limit | Annual rate | Monthly rate |
|---|---|---|
| $200,000 | $1,748 | $146 |
| $275,000 | $2,235 | $186 |
| $350,000 | $2,727 | $227 |
| $425,000 | $3,258 | $272 |
| $500,000 | $3,848 | $321 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Lenders typically require you to choose a dwelling coverage limit that matches your home’s replacement cost value, which is the estimated cost of rebuilding it from the ground up.
It’s usually also best to insure your home at or near its replacement cost value if you own the home outright or have a low loan balance. Otherwise, you may be saddled with large out-of-pocket expenses to rebuild the home after a major or total loss.
Nevertheless, it’s still good to review your quote or policy to make sure your dwelling coverage limit is not too high.
The best way to do this is to make sure the information the insurance company has about your home is accurate. Most insurance companies enter details about your home into computer software they use to estimate your home’s replacement cost value.
Minnesota’s best homeowners insurance companies
American Family: Best rates and customer service
$2,078 a year, or $173 a month
7% lower than the state average
842 out of 1,000, J.D. Power
American Family leads the way for homeowners insurance in Minnesota with the state’s lowest rates and highest customer service scores.
Cheapest average home insurance rate statewide.
High customer satisfaction ratings.
Low frequency of complaints.
Lowest rates are not available to all applicants.
Allstate: Best policy features and discounts
$2,150 a year, or $179 a month
Avoiding claims lowers your deductible
A rate-guard feature protects you from price increases after your first home insurance claim
Allstate's discounts and policy features combine to save you money before or after you file a claim.
Second-lowest average home insurance rates in Minnesota.
Lowest average rates in Minneapolis-St. Paul.
Discounts to new customers with no recent claims.
Claims RateGuard and Deductible Rewards programs save you money if you do have a claim.
Best policy features require an upgrade to a pricier policy tier.
Higher frequency of confirmed complaints than its competitors.
State Farm: Best for bundling
819 out of 1,000
A++, AM Best
State Farm’s standalone home insurance rates exceed the state average, but the discounts it offers for bundling home and auto policies often bring its combined rates down to more affordable levels.
High customer satisfaction score from J.D. Power.
Generous discounts for bundling home and auto.
Additional discounts for impact-resistant roofing and home security systems.
Standalone home insurance rates are higher than the state average.
Customer service ratings for Minnesota home insurance companies
Among Minnesota’s home insurance companies, American Family has the best customer satisfaction score from J.D. Power and the best complaint rating from the National Association of Insurance Commissioners (NAIC).
J.D. Power’s overall customer satisfaction index rankings are based on customer surveys rating home insurance companies on factors such as policy offerings, price and claims.
American Family’s score of 842, on a 1,000-point scale, is the highest among Minnesota’s leading homeowners insurance companies.
| Company | Overall satisfaction score |
|---|---|
| American Family | 842 |
| State Farm | 829 |
| Segment average | 819 |
| Allstate | 815 |
| Travelers | 794 |
| Farmers | 792 |
| Source: J.D. Power 2022 U.S. Home Insurance Study | |
The NAIC Complaint Index compares insurance companies by confirmed complaints, which are complaints that lead to a finding of fault. A company with a 2.0 Complaint Index rating has twice as many complaints as expected for its size, while a company with a 0.5 rating has half as many.
American Family’s Complaint Index rating of 0.13 is the lowest, or best, among Minnesota’s home insurers, followed by Travelers, 0.17, and State Farm, 0.35.
| Company | Complaint Index |
|---|---|
| American Family | 0.13 |
| Travelers | 0.17 |
| State Farm | 0.35 |
| Farmers | 0.39 |
| Allstate | 0.74 |
| Source: National Association of Insurance Commissioners, 2022 data | |
Minnesota home insurance rates by city
In Minnesota’s largest cities, home insurance rates range from $173 a month in Rochester to $213 a month in Minneapolis. The average cost of home insurance in St. Paul is $203 a month.
| City | Annual rate | Monthly rate |
|---|---|---|
| Bloomington | $2,349 | $196 |
| Brooklyn Park | $2,352 | $196 |
| Duluth | $2,143 | $179 |
| Lakeville | $2,370 | $198 |
| Maple Grove | $2,447 | $204 |
| Minneapolis | $2,559 | $213 |
| Plymouth | $2,387 | $199 |
| Rochester | $2,079 | $173 |
| St. Paul | $2,431 | $203 |
| Woodbury | $2,300 | $192 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Find cheap homeowners insurance in Minnesota
Cheapest home insurance in Minneapolis-St. Paul
Although American Family has the cheapest average home insurance rate statewide, Allstate’s rates are lowest in Minneapolis-St. Paul. Allstate’s rates in the Twin Cities average $176 a month, which is slightly lower than American Family’s rate of $182 a month.
| Company | Annual rate | Monthly rate |
|---|---|---|
| Allstate | $2,115 | $176 |
| American Family | $2,183 | $182 |
| State Farm | $2,247 | $187 |
| Farmers | $2,911 | $243 |
| Travelers | $3,098 | $258 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Cheapest home insurance in Rochester
Farmers offers the cheapest home insurance in Rochester, $157 a month, followed by Allstate and American Family, which both charge $174 a month.
| Company | Annual rate | Monthly rate |
|---|---|---|
| Farmers | $1,883 | $157 |
| Allstate | $2,086 | $174 |
| American Family | $2,092 | $174 |
| State Farm | $2,094 | $175 |
| Travelers | $2,241 | $187 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Cheapest home insurance in Duluth
Travelers has the cheapest home insurance in Duluth, $146 a month, followed by American Family, $169 a month, and Allstate, $175 a month.
| Company | Annual rate | Monthly rate |
|---|---|---|
| Travelers | $1,751 | $146 |
| American Family | $2,032 | $169 |
| Allstate | $2,105 | $175 |
| State Farm | $2,119 | $177 |
| Farmers | $2,706 | $226 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Minnesota home insurance rates by county
In Minnesota’s largest counties, home insurance rates range from $175 a month in Olmsted County to $204 a month in Hennepin County.
| County | Annual rate | Monthly rate |
|---|---|---|
| Anoka County | $2,330 | $194 |
| Dakota County | $2,366 | $197 |
| Hennepin County | $2,445 | $204 |
| Olmsted County | $2,099 | $175 |
| Ramsey County | $2,405 | $200 |
| Scott County | $2,361 | $197 |
| St. Louis County | $2,174 | $181 |
| Stearns County | $2,134 | $178 |
| Washington County | $2,386 | $199 |
| Wright County | $2,311 | $193 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Frequently asked questions
Homeowners insurance in Minnesota costs an average of $2,235 a year, or $186 a month, for a typical home.
Homeowners insurance is not required by law in Minnesota. However, if you have a mortgage, your lender will likely require you to insure your home at its replacement cost value, or close to it. If you have a mortgage for a home in a high-risk flood zone, your lender is likely to require flood insurance, too.
The average cost of flood insurance in Minnesota is $881 a year, or $73 a month, for policies obtained through the federally-managed National Flood Insurance Program.
Methodology
The rates shown in this article are based on an analysis of quotes provided by Quadrant Information Services for a typical home in every Minnesota ZIP code. Unless otherwise noted, prices reflect quoted rates for a standard HO-3 policy with the following coverages, limits and deductibles:
- Dwelling: $275,000
- Other structures: $27,500
- Personal property: $137,500
- Loss of use: $55,000
- Liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
Home insurance by city
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