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: https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-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.
Best 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
Why contact every insurer in Minnesota you want a homeowners quote from? You can just answer a few questions about your home and desired coverage, and get competing quotes. Save time and money with QuoteWizard.
Top 10 Minnesota Home Insurance Company Market Share
| Rank | Company | Direct Premiums Written (in thousands) | Market Share |
|---|---|---|---|
| 1 | American Family Insurance Co. | $250,809 | 13.7% |
| 2 | Farmers Insurance Group of Cos. | $162,175 | 8.8% |
| 3 | Auto-Owners Insurance Co. | $99,926 | 5.5% |
| 4 | Allstate | $97,012 | 5.3% |
| 5 | Liberty Mutual | $88,276 | 4.8% |
| 6 | USAA Insurance Group | $57,445 | 3.1% |
| 7 | Travelers Companies Inc. | $55,455 | 3.0% |
| 8 | Nationwide Mutual Group | $49,881 | 2.7% |
| 9 | Auto Club Insurance Assoc. Group | $45,762 | 2.5% |
Financial Strength Ratings of Top Minnesota Home Insurers
Source: A.M. Best (Ratings as of 8/24/2015)
- American Family Insurance Co.: A+
- Farmers Specialty Insurance Co.: A
- Auto-Owners Insurance Co.: A++
- Allstate: A+
- Liberty Mutual: A
- USAA Insurance Group: A++
- Travelers Companies Inc.: A++
- Nationwide Mutual Group: A+
- Auto Club Insurance Assoc. Group: A-
Minnesota Property & Casualty* Insurance Company Market Share
| Rank | Company | Direct Premiums Written (in thousands) | Market Share |
|---|---|---|---|
| 1 | American Family Insurance Co. | $699,397 | 16.8% |
| 2 | Farmers Specialty Insurance Co. | $459,848 | 4.5% |
| 3 | Progressive Group | $444,748 | 4.3% |
| 4 | Travelers Companies Inc. | $407,545 | 4.0% |
| 5 | Liberty Mutual | $380,307 | 3.7% |
| 6 | Auto-Owners Insurance Co. | $363,788 | 3.6% |
| 7 | Wells Fargo Insurance Group | $299,032 | 2.9% |
| 8 | Allstate | $271,972 | 2.7% |
| 9 | QBE Insurance Co. | $251,423 | 2.5% |
| *Represents both home and auto insurance | |||
Home Insurance Rate Factors
Many different factors come into play when insurance companies calculate the cost of homeowners insurance. Some, like the age of your home, are within your control. Others, like crime rates or natural disasters, are beyond your control. Here are some of the factors that affect the cost of homeowners insurance in Minnesota.
Average Home Listing Prices
Home prices can greatly affect the cost of insurance in any given state. A higher average home price generally means higher premiums in that state. For Minnesota, the average listing price is $274,574 as of July 2015, about the same as the national average of $284,748.
Average Burglary Rates
Burglary is a serious and sometimes violent property crime. States with higher average burglary rates generally have higher average home insurance premiums. That's because the likelihood that someone will need to file a claim is higher. According to data from the FBI Uniform Crime Report, in 2013, Minnesota’s average burglary rate was 419.0 per 100,000 people. This is much lower than the national average of 610.0 per 100,000.
States with more law enforcement per capita tend to be safer. In Minnesota, there are 14.9 law enforcement personnel per 100,000 total citizens. That's much lower than the national median of 32 per 100,000.
Home Insurance Hazards
Minnesota experiences all four seasons. It is probably most famous (or perhaps infamous) for its extremely cold and snowy winters. In the summers, the heat and humidity occasionally give way to severe thunderstorms and tornadoes. These year-round extremes represent a number of homeowners insurance hazards.
Extreme winters: Winters in Minnesota are extremely cold and extremely snowy. The northern parts of the state are much colder, on average, than the southern portion of the state. January in northern Minnesota is marked by high temperatures below freezing and lows below zero. While average highs in southern Minnesota are also below freezing, the average daily temperature is a bit higher. Southern Minnesota usually emerges from winter earlier and starts winter later than northern Minnesota. Overall, the state averages about 38 days and 54 inches of snow per year. As with temperatures, the snowfall distribution is also uneven. The capital city of St. Paul, in southern Minnesota, averages 34 days of snow, and 51 inches of snow per year. But the northern city of Duluth averages 61 days of snow per year, and 86 inches of snow per year. This snow often comes in the form of heavy blizzards caused by “Alberta clippers.” These are fast-moving low pressure systems responsible for much of the extreme winter snowfall in the Upper Midwest.
Thunderstorms: Minnesota is so far north it gets thunderstorms later in spring than states closer to the Gulf of Mexico. Minnesota averages about 35 days of thunderstorms per year, mostly in the summer. The North Star State averages over 100 days of rain per year. Thunderstorms contribute greatly to the 27 inches of rainfall that the state averages each year.
These thunderstorms are encouraged by the state’s warm summers and extremely high humidity. In summer months, southern parts of the state average about 80 degrees with about 90% humidity, whereas northern parts average closer to 70 degrees with about 80% humidity. This is because Lake Superior, to the northeast, moderates the surrounding area, keeping summers cooler and winters warmer. Thunderstorms in Minnesota can be dangerous and very destructive. They bring heavy rains, strong winds, lightning, and can cause tornadoes, wildfires, and flooding.
Minnesota is especially susceptible to flooding, from both summer storms and snow melt runoff, and averages 3 days per year of flood conditions. Proper preparation is the best way to combat this kind of extreme weather. The only way to obtain flood insurance is through the National Flood Insurance Program. Learn more about the NFIP here.
Tornadoes: Spring and summer thunderstorms give way to tornadoes, which are the most violent kind of storm. The southern half of the state is much more susceptible because of the increased exposure to warm, humid air. According to the National Oceanic and Atmospheric Administration, Minnesota averages 19 tornadoes per year. In 2012, the National Weather Service ranked Minnesota as the #20 most tornado-prone state. 2010 saw 48 tornadoes, the most on record, including nine that ranked “strong” or higher. These tornadoes can have winds up to 110 mph, and can travel for miles before slowing down. A strong tornado can tear buildings from their foundations and flip over cars. Even a weak tornado can cause property damage and knock over trees. So be sure to discuss how you can protect yourself from them with your insurance agent.
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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