Nearly half of all Minneapolis residents own the home in which they live, making affordable homeowners insurance a top priority for many in the region. The average Minneapolis homeowner pays $1,971 annually for insurance coverage on a $250,000 dwelling, however, there are cheaper options that can help residents save on their insurance needs. Our team identified the five best cheap homeowners insurance companies in Minneapolis based on affordability, breadth of coverage, available discounts and customer satisfaction. By understanding what options are available, residents can make a more informed decision and save money on their insurance policies.
Best Cheap Home Insurance Companies in Minneapolis
In order to determine which home insurance companies offer the best cheap coverage, we evaluated each provider for their coverage options, discounts, affordability and customer satisfaction. The following table outlines the five best cheap home insurance companies in the region according to our findings:
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power score|
|AAA (CSAA Insurance Group)||$1,161||882/1,000|
When it comes to the best cheap home insurance companies in Minneapolis, Auto-Owners Insurance is hard to beat. Not only does this provider boast the most affordable rates from the companies we reviewed, but they also offer many optional coverages in addition to their standard homeowners insurance offerings. Such additional coverage options include guaranteed home replacement cost, water backup of sewers or drains, equipment breakdown, identity theft expense coverage, special personal property coverage and much more.
In addition to these special coverage options, Auto-Owners offers many different discount options to help homeowners save even more on their already affordable coverage. Discounts are applicable for multi-policy, payment history, green upgrades, advance quote, protective devices, water shut-off system, automatic backup generator, mortgage-free and favorable loss history.
AAA (CSAA Insurance Group)
In terms of affordability, AAA (also referred to as CSAA Insurance Group by J.D. Power) offers competitive pricing compared to other Minneapolis providers. Standard coverage options are available through the provider, with additional coverage options for boats, umbrella/excess liability, flood insurance, and coverage for valuables such as jewelry, furs, collectibles, computers, silver and more. AAA does not provide many discounts to further bring down the cost of their insurance. However, they do offer savings for those with burglar alarm systems installed, newer homes, having a claim-free past and having multiple policies.
American Family Insurance
Slightly more expensive than AAA or Auto-Owners, American Family Insurance is still well below the regional average at just $1,463 annually for coverage on a $250,000 dwelling. The company offers standard homeowners insurance coverage in addition to optional coverages for equipment breakdown, sump pump and water backup, matching siding and credit theft protection and monitoring. Additionally, American Family offers plenty of discounts to further drive down the cost of coverage, including for security systems, smart home devices, multiple policies, age of home, customer loyalty, paid-in-full and renovated homes.
If you’re seeking customizable coverage for your homeowners insurance needs, Farmers provides plenty of flexible options. Through Farmers’ Smart Plan Home policies, customers can choose from three customizable packages as a starting point for building out their coverage. Customers have the freedom to raise or lower their limits, and add or change coverages as-needed. Farmers also provides plenty of discounts to help policyholders save even more on their homeowners’ insurance needs. Available discounts include enhanced home safety and security, non-smokers, multi-policy and customer affiliations/employment.
Travelers Insurance might be the most expensive on the list, but the company more than makes up for the cost increase with their available coverage options. In addition to standard homeowners insurance coverage, Travelers offers customers optional coverages for special personal property, contents replacement, additional replacement cost protection, jewelry and valuables, personal articles floater, water backup and sump pump discharge overflow, identity fraud and green homes.
Available discounts are pretty slim from Farmers, only including discounts for multi-policy, claim-free, protective devices, green homes and homes purchased within the past 12 months of starting the policy.
Minneapolis Home Insurance Considerations
While homeowners insurance is not legally required, many mortgage lenders require you to have a homeowners insurance policy in place prior to receiving a loan. Even if you do not have a mortgage on your home, obtaining a policy is still strongly recommended to help provide enhanced protection when the unforeseen occurs. In Minneapolis especially, residents have many concerns that can threaten their home safety and security, including crime rates that are twice the national average and an average of 52 inches of snowfall per year. For this reason, considering the following coverages may help protect your personal property:
- Contents Replacement Coverage: With such a high rate of burglary in the region, contents replacement coverage may provide the enhanced coverage you need to pay for the cost of replacing your personal property in the event it is stolen or damaged.
- Flood Coverage: Since Minneapolis sees more snowfall per year than many cities throughout the nation, flood insurance coverage may be a great way to further protect your home from water damage incurred during the seasonal thaw.
- Identity Theft: If someone steals your credit card, computer or other personal property from your home and it results in identity theft, this coverage may help pay for the cost of unauthorized expenses charged to your account.
Home Insurance Discounts in Minneapolis
In addition to finding the right add-on coverages, Minneapolis residents need to seek out ways to make their policies more affordable. The best way to reduce the cost of coverage is by taking advantage of available discounts. Each insurance provider offers their own set of discounts to policyholders, so it is recommended that you shop around to see not only which provider offers the lowest rates, but also which company provides the most opportunities for increased savings. The following are just some of the most common discounts available to homeowners in the region:
- Multi-Policy: This discount rewards customers who also have automotive or life insurance policies with the same company. By bundling your insurance policies, you may be able to save significantly on your premium.
- Protective Devices: Homeowners that install security or smart home systems may be eligible for a discount through their provider.
- Automatic Backup Generator: Especially in Minneapolis’ snowy climate, having a backup generator is a good idea regardless of whether or not you will receive a discount. If you have one installed in your home, you may be able to save on your insurance cost depending on which provider you have selected.
- Claim-Free: One of the easiest ways to save on the cost of insurance is by having a favorable loss history. Insurance carriers assess each policyholder’s risk when determining the cost of their premium, so it makes sense that those with fewer claims on their record may receive more favorable rates.
Be sure to consult with your insurance agent to learn about which discounts can help you save the most on your premium.
Frequently Asked Questions
What is the best home insurance company?
The best homeowners insurance company largely depends on your specific needs. There are many available home insurance providers in Minneapolis, each of which boasts their own set of pros and cons. To find the best policy for your needs, it is strongly recommended that you shop around and conduct thorough research to learn about each provider’s coverage options, discounts and claims satisfaction.
How much does home insurance in Minneapolis cost?
According to recent data, the average cost of homeowners insurance in Minneapolis is $1,971 annually for coverage on a $250,000 dwelling. However, there are more affordable home insurance options available in the region that can help residents save on their premium.
How much home insurance do I need in Minneapolis?
There is no legal requirement for the amount of homeowners insurance Minneapolis residents need. However, your mortgage lender may require you to hold specific policy limits depending on your loan terms. Additionally, residents are encouraged to factor in regional concerns (i.e. higher-than-average crime rates) in order to assess their coverage needs accurately and seek out any optional coverages that may further protect their property.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.