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Compare Homeowners Insurance In Minnesota
Minnesota is the birthplace of Bob Dylan, Judy Garland, Target stores, and Charles M. Schulz, creator of Peanuts. The Land of 10,000 Lakes is known for its kind citizens, and having one of the highest standards of living of any state in the US. The Gopher State is also known for its extremely cold winters.
Average Minnesota Homeowners Insurance Rates
How much is home insurance in Minnesota? Minnesota has relatively high homeowners insurance premiums. The average cost of home insurance in the state of Minnesota was $1,323. That's a bit higher than the national average of $1,173. Only 12 states have higher average home insurance premiums than Minnesota.
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| Minnesota Annual Average | $1,222 | $1,219 | $1,323 |
| Minnesota Price Per Month | $102 | $101 | $110 |
| US Annual Average | $1,096 | $1,132 | $1,173 |
| US Cost Per Month | $91 | $94 | $98 |
| National Rank | 11 | 16 | 13 |
| Source: Facts + Statistics: Homeowners insurance | |||
The graph below shows the change in average Minnesota home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, Minnesota homeowners insurance rates increased from $1,056 in 2011 to $1,323 in 2015, a jump of $267 dollars, or 25.28 percent.
Choosing a homeowners insurance company in Minnesota should be easier. Actually, it’s already easy. The key to finding the best rates is to get a homeowners insurance quotes comparison in Minnesota from multiple companies.
Most Popular Minnesota Home Insurance Companies
Last year, these were the 10 most common home insurance companies reported by QuoteWizard users living in the state of Minnesota. Out of the 13,982 Minnesota homeowners that used QuoteWizard to request insurance quotes last year, 461 had no home insurance.
- American Family
- Progressive
- Farmers
- Allstate
- AAA
- Liberty Mutual
- Geico
- USAA
- Nationwide
- Travelers
Best Homeowners Insurance Companies in Minnesota
The above list shows the most popular home insurers in Minnesotas according to our users. But popular doesn’t always mean best.
Our study on the best homeowners insurance companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:
- Amica: Best Overall
- MetLife: Best for Bundling
- Allstate: Best for Local Agents
- Hartford: Best for Seniors
- State Farm: Best for Pet Owners
- Travelers: Best for Flexible Policies
- Nationwide: Best Replacement Coverage
- Farmers: Best for Eco-Friendly Homes
- Liberty Mutual: Best for Quick and Easy Quotes
- Auto Owners Insurance: Best Claims Experience
Top Minnesota Home Insurance Company Market Share
| Rank | Company | Financial Rating | Market Share |
|---|---|---|---|
| 1 | American Family Insurance | A+ | 13.7% |
| 2 | Farmers Specialty Insurance | A | 8.8% |
| 3 | Auto-Owners Insurance | A++ | 5.5% |
| 4 | Allstate | A+ | 5.3% |
| 5 | Liberty Mutual | A | 4.8% |
| 6 | USAA Insurance | A++ | 3.1% |
| 7 | Travelers Companies | A++ | 3.0% |
| 8 | Nationwide Mutual | A+ | 2.7% |
| 9 | Auto Club Insurance Association | A- | 2.5% |
Minnesota Home Insurance Rate Factors
Several factors come into play when insurance companies calculate the cost of your homeowners insurance. Some factors, like the type of pet you own, are within your control. Other factors, like neighborhood crime rates, are beyond your control. Here are some of the factors that influence the cost of homeowners insurance in Minnesota.
Your Personal Rate Factors
Your House
The rate you’ll pay for insurance varies depending on the home. These are the main factors that affect your homeowners insurance costs:
- Your home’s age. Old homes come with high insurance rates. That’s because as a home gets older, it can require major repairs. And that means old homes are more likely to have hefty insurance claims. Most MN residents own old homes, with 8 percent of homes built in 1939 or earlier.
- The age and quality of your roof. Maintaining your roof with region-appropriate material can help you cut insurance costs. A well-maintained roof can be the difference between major damage and minor repairs after a disaster. Insurers know this, and so your rates reflect the age and condition of your roof. In Northeastern Minnesota, for example, try to avoid wood shingles as they’re a major fire hazard. And make sure your roof is equipped to handle heavy snow loads.
- Your home’s replacement cost. Replacement cost is how much it would cost to rebuild your home from the ground up after an accident or disaster. Your home’s replacement cost should match your dwelling/structure coverage, which is a home insurance price factor. Thus, a higher replacement cost means higher premiums. Replacement cost doesn’t factor in how much you bought your home for, but instead depends on the style and size of your home. For example, a $600,000 home in Edina could have a lower replacement cost than a house worth $300,000 in Minneapolis.
Claims History
If you’ve filed multiple claims within the last few years, you may have higher home insurance rates. Claims tend to stay on your record for five to seven years. If you file several claims within that time period, your prices could rise. That’s why homeowners try not to file any avoidable claims.
Pets
Do you own an exotic pet? Or a rottweiler, pit bull, or chow chow? Your homeowners insurance rates could rise because of the type of pet you own, or even the breed. You may even have a hard time finding a company to insure you in the first place. According to the AVMA, Minnesota has one of the lowest pet ownership rates, especially when it comes to dogs, in the nation.
Credit Score
Your credit score also influences your homeowners insurance rates. Companies look at your credit score to determine your policy price. Unfortunately, people with bad credit scores pay more for homeowners insurance. Minnesota residents are in luck, as the state has the best average credit score in the nation.
Minnesota Rate Factors
Weather
Minnesota is the 25th most natural disaster-prone state in the US. That’s good news, because areas with a high risk of natural disasters have high insurance rates. MN falls in the middle of the pack when it comes to weather risk, but climate varies depending on where in the state you live. If you live in Northeastern MN, take steps to mitigate your home’s fire risk. If you live in Southwestern MN, prepare your home in case of a flash flood. And no matter where you live, make sure your house can handle Minnesota’s cold and snowy winters. These weather types can strike anywhere in the state.
- Wind storms
- Floods
- Wildfires
- Winter storms
- Tornadoes
MN has a high flood risk, and homeowners insurance doesn’t cover flood damage. Make sure you buy flood insurance.
According to mn.gov, there are steps you can take to prepare your home for a natural disaster.
- Buy flood insurance.
- Follow local and state fire codes.
- Inspect roofs and drains regularly.
Property Crime
Burglary poses a big risk for both you and your home. That’s why areas with high property crime rates pay more for homeowners insurance. MN has the 20th lowest property crime rate in the country. In 2017, Minnesota’s average property crime rate was 2,191.5 per 100,000 people.
The chance of a burglary occurring at your home depends on where in the state you live. For example, Minneapolis has an average of 44.01 property crimes annually per 1,000 residents. Whereas Saint Paul has an average of 34.57 property crimes annually per 1,000 residents.
Similar to natural disaster preparation, there are steps you can take to limit the risk of property crime. These steps include adding security cameras, deadbolt locks, alarms, and more.
Types of Home Insurance Policies
As a homeowner, you have plenty of options when shopping for home insurance. In MN, you can choose from these policy types:
- HO-1: This insurance policy is the most basic, it covers normal damages.
- HO-2: This is considered broad homeowners insurance. This policy covers everything in HO-1, plus falling objects and damages to AC units, pipes, and other home systems.
- HO-3: This is the most popular homeowners policy type. It covers all damages unless specifically excluded. It also covers unattached structures.
- HO-5: This is a comprehensive policy like HO-3. However, it comes with more coverage and less property claim limitations. HO-5 is considered a premium policy.
- HO-6: If you own a condo, this is probably your best coverage option. It covers possessions and provides liability for condo owners.
- HO-7: Are you a mobile homeowner? This policy offers similar coverage as HO-3, but for mobile homeowners.
- HO-8: If you own an older home, you may need a policy to cover its unique needs. This policy is like HO-3, but for older homes.
Minnesota Office of the Insurance Commissioner
- Website:
- Homepage
- Insurance Commissioner:
- Jessica Looman
- Insurance Hotline:
- (651) 539 – 1600
- Office Hours:
- Monday - Friday
8:00 am to 5:00 pm
- File a Consumer Insurance Complaint
- Complaint Page
Sources:
- A.M. Best Insurance Carrier Ratings
- Insurance Information Institute – Home Insurance Market Share in Minnesota
- NAIC--Home Insurance Market Share in Minnesota
- Average Home Insurance Rates in Minnesota
- Average Home Listing Price in Minnesota
- Most Tornado-Prone States
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