Best Homeowners Insurance in Minnesota
Homeowners insurance in Minnesota is not cheap, which is why it pays to shop around to find the best rates and coverage. Here’s a look at how prices stack up and other key information to help you find the best homeowners insurance in Minnesota.
In this article:
What is the average cost of home insurance in Minnesota?
The average cost of home insurance in Minnesota is $2,087 a year, or $174 a month, according to the latest rate analysis by QuoteWizard. Among the companies included in our analysis, American Family, Travelers and Allstate have the cheapest average statewide rates.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| American Family | $1,747 | $146 |
| Travelers | $1,858 | $155 |
| Allstate | $1,882 | $157 |
| State Farm | $2,406 | $201 |
| Farmers | $2,540 | $212 |
| Statewide average | $2,087 | $174 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
In our analysis, we obtained non-binding quotes for a standard homeowners insurance policy from five leading companies on a typical home in every ZIP code in the state.
Since insurance companies evaluate a number of rate factors that vary by customer and home, you are likely to qualify for a higher or lower rate with each carrier. This is one of the main reasons why it’s best to compare quotes from multiple companies when you shop for homeowners insurance.
Our analysis also shows the average costs of homeowners insurance in Minnesota’s major cities.
Best home insurance rates in Minneapolis and St. Paul
American Family and Allstate offer the best rates in the Twin Cities, with State Farm close behind.
In Minneapolis, American Family’s rate works out to $159 a month, compared to $174 a month for Allstate and $188 a month for State Farm.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| American Family | $1,911 | $159 |
| Allstate | $2,084 | $174 |
| State Farm | $2,253 | $188 |
| Travelers | $2,771 | $231 |
| Farmers | $2,831 | $236 |
| Citywide average | $2,370 | $198 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
In St. Paul, the average rate offered by American Family and Allstate each works out to $162 a month, while State Farm’s average rate is $186 a month.
Overall, the average monthly cost of home insurance is $198 in Minneapolis and $190 in St. Paul, which both exceed the statewide average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Allstate | $1,939 | $162 |
| American Family | $1,949 | $162 |
| State Farm | $2,230 | $186 |
| Travelers | $2,583 | $215 |
| Farmers | $2,688 | $224 |
| Citywide average | $2,278 | $190 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Best homeowners insurance rates in Bloomington
The average monthly rate for homeowners insurance in Bloomington is $189, with Allstate, American Family and State Farm offering rates that are lower than the citywide average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Allstate | $1,946 | $162 |
| American Family | $2,116 | $176 |
| State Farm | $2,117 | $176 |
| Travelers | $2,299 | $192 |
| Farmers | $2,873 | $239 |
| Citywide average | $2,270 | $189 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Best homeowners insurance rates in Rochester
The average monthly rate of homeowners insurance in Rochester is $173, and American Family, Travelers and Allstate each offer a monthly rate that is cheaper than the average for the city.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| American Family | $1,848 | $154 |
| Travelers | $1,981 | $165 |
| Allstate | $2,020 | $168 |
| State Farm | $2,094 | $175 |
| Farmers | $2,413 | $201 |
| Citywide average | $2,071 | $173 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Best homeowners insurance rates in Duluth
The average monthly rate of homeowners insurance in Duluth is just $160 a month, with Travelers and American Family offering rates that are less than the citywide average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Travelers | $1,582 | $132 |
| American Family | $1,796 | $150 |
| Allstate | $2,040 | $170 |
| Farmers | $2,044 | $170 |
| State Farm | $2,119 | $177 |
| Citywide average | $1,916 | $160 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Best homeowners insurance rates in St. Cloud
The average cost of homeowners insurance in St. Cloud works out to $173 a month. The average rates offered by Travelers, Allstate and American Family are less than this citywide average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Travelers | $1,657 | $138 |
| Allstate | $1,946 | $162 |
| American Family | $1,988 | $166 |
| State Farm | $2,141 | $178 |
| Farmers | $2,665 | $222 |
| Citywide average | $2,079 | $173 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Best customer service for Minnesota home insurance
When it comes to customer service indicators, State Farm has the highest J.D. Power customer satisfaction score, and American Family has the best Complaint Index from the National Association of Insurance Commissioners (NAIC).
Based on a 1,000-point scale, J.D. Power’s satisfaction scores are based on customer surveys that rate insurance companies on interaction, policy offerings, price, billing process, policy information and claims. State Farm’s customer satisfaction score is 835, American Family’s score is 831 and Allstate’s score is 829. All three are higher than the segment average of 825.
| Company | Customer satisfaction score |
|---|---|
| State Farm | 835 |
| American Family | 831 |
| Allstate | 829 |
| Farmers | 813 |
| Travelers | 800 |
| Segment average | 825 |
| Source: J.D. Power 2021 U.S. Home Insurance Study. | |
The NAIC’s Complaint Index compares insurance companies by the number of confirmed complaints they receive. A complaint is confirmed when it leads to a finding of fault by the insurance commissioner in the state in which it was filed.
The National Complaint Index is 1.0. A company with a 2.0 Complaint Index has twice as many confirmed complaints as expected, and a company with a 0.5 Complaint Index has half as many as expected. A lower Complaint Index reflects better performance.
The Complaint Index shows that American Family, State Farm and Travelers had fewer confirmed complaints than expected in 2020, the most recent year for which data is available.
The NAIC’s Complaint Index is based on combined data from every state in which an insurance company conducts business. In addition to showing each home insurance company’s Complaint Index, the table below also shows the number of confirmed complaints each carrier received in Minnesota in 2020.
| Company | Complaint Index | Confirmed complaints in Minnesota |
|---|---|---|
| American Family | 0.56 | 11 |
| State Farm | 0.74 | 20 |
| Travelers | 0.94 | 1 |
| Farmers | 1.27 | 0 |
| Allstate | 2.0 | 1 |
| Source: National Association of Insurance Commissioners, based on 2020 data. | ||
What are the best home insurance companies in Minnesota?
Based on key customer service metrics and price, American Family and State Farm stand out as the best homeowners insurance companies statewide in Minnesota. However, Allstate’s rates are extremely appealing in the Twin Cities area, while Travelers is quite competitive in Rochester, Duluth and St. Cloud. Each of these companies also offers additional ways to save.
American Family offers a discount to customers who have replaced their home’s plumbing, electrical or heating system within the past 15 years. And those between 18 and 30 are eligible for an additional discount if a parent is already insured by American Family.
State Farm offers a homeowners insurance discount to customers with impact-resistant roofing materials, such as hail-resistant shingles.
Allstate offers a discount to new customers without recent claims, as well a Deductible Rewards program that reduces your deductible by $100 for each year you don’t file a claim.
Travelers provides a discount to those with protective devices in their homes, including automatic water shut-off systems, interior sprinkler systems and home technology that provides alerts in the event of a fire, water leak or intrusion.
Each of the companies included in our analysis also offer discounts for bundling your homeowners coverage with your auto insurance or any other policy, such as the insurance you might have for your motorcycle, boat or rental property.
What do Minnesota’s homeowners insurance laws require?
In Minnesota, the insurance industry is regulated by the state Department of Commerce, under the agency’s deputy commissioner of insurance. Unlike auto insurance, there is no legal mandate to purchase homeowners insurance in Minnesota, or any other state. However, if you finance your home, your lender will require it.
State laws do place limitations on insurance companies’ ability to deny, cancel and non-renew coverage. For example, an insurance company can only cancel a policy for a limited number of reasons, including nonpayment of premium or a change to the property that makes it riskier to insure.
State law also restricts a company’s ability to non-renew your homeowners insurance at the end of each policy term. However, if you file two or more claims within a three-year period, an insurance company can refuse to renew your policy, unless you meet certain exceptions.
The state does not restrict a customer’s ability to cancel a policy. However, your lender will probably require you to arrange to have a new policy go into effect on your existing policy’s cancellation date, which is a wise practice even if you own the home outright.
Minnesota’s flood risks
The Minnesota Department of Natural Resources (DNR) reports that the state has seen an increase in the frequency and intensity of rainfall in the past 20 years. This includes a four-fold increase in widespread rain events of more than six inches since 2000.
While standard homeowners insurance does not cover flood damage, you can purchase flood insurance if your home is in a community that participates in the National Flood Insurance Program (NFIP).
Fortunately, Minnesota’s modern floodplain management efforts date back to the late 1960s. Back then, they dovetailed with the formation of the NFIP, which, among other things, spurred communities to enact zoning laws and design infrastructure to minimize flood risks. Today, more than 95% of Minnesotans live in an NFIP-participating community, according to the DNR.
This means that if your home is at risk of flood damage, there’s a good chance that you are eligible to purchase flood insurance from either the federal government or a private insurance company. In Minnesota, the average cost of government-backed flood insurance is $932 a year, or $78 per month.
Federal and private flood insurance is widely available through authorized local insurance agents.
You can protect your home from other types of water damage by adding endorsements for water backups and sump pump failures to your homeowners insurance policy. Damage from these specific risks is otherwise usually excluded from standard coverage.
Methodology
In our analysis, we obtained quotes from every ZIP code in Minnesota for a homeowners insurance policy on a standard home with the following limits and deductible:
- $275,000 dwelling coverage
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
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