Having adequate homeowners insurance is important for every homeowner. For Minnesotans, living in the second-most-northern state in the U.S., disasters often are related to winter weather. The best Minnesota homeowners insurance policies will feature generous coverage for damage resulting from hail, snow and wind.
Fortunately, some of America’s best homeowners insurance companies operate in Minnesota and are familiar with the potential hazards that can face homeowners. When looking for Minnesota home insurance, assess factors including the level of customer service, financial stability and ease of making a claim.
Best home insurance in companies in Minnesota
Some of the best Minnesota home insurance options include:
- Allstate: Generous discounts and a wide range of endorsements are hallmarks of an Allstate home insurance policy. It also has an excellent website packed with educational information.
- Auto-Owners Insurance: Auto-Owners earns a coveted A++ rating from AM Best, which assesses the financial strength of a company. The score shows that the company will be there when you need them, no matter how bad the economy.
- Farm Bureau: Although Farm Bureau began 80 years ago to serve farmers, it now offers a comprehensive cross-section of coverages to homeowners with some nice add-ons, such as one that will pay you if you lose the food in your fridge during a black-out and one that covers your electronics in the case of an electricity surge.
- Farmers: Farmers offers solid coverage with some unique discounts, including one for making green improvements to your home. It has good ratings for customer service and financial accountability across the board.
- State Farm: State Farm writes more policies in Minnesota than any other company. Its agents know the state, offer an excellent range of coverages, and are highly rated by organizations like J.D. Power and Consumer Reports.
We chose our best Minnesota homeowners insurance companies by first checking out what rating organizations such as Consumer Reports and J.D. Power had to say about them. These organizations poll thousands of homeowners about their satisfaction with their insurance. Next we looked at the website and assessed how easy it was to find information, get an online quote and make a home insurance claim. Lastly, we talked to agents and got a sample quote.
|Consumer Reports reader score||J.D. Power||AM Best financial strength rating||Other types of insurance available|
|Allstate||82||3 out of 5||A+||Auto, motorcycle, off-road, renters, life, condo, boat, business|
|Auto-Owners||89||3 out of 5||A++||Condo, renters, mobile home, umbrella, farm, pet, motorcycle,motorhome, boat, trailer, life, business|
|Farm Bureau||N/A||N/A||N/A||Condo, renters, auto, life, farm/ranch, health, business|
|Farmers||83||3 out of 5||A||Auto, life, business, renters, condo|
|State Farm||85||3 out of 5||A++||Condo, renters, auto, boat, motorcycle, motorhome, health,disability, life, liability, small business|
Average homeowners insurance cost in Minnesota
According to the Insurance Information Institute, the average Minnesotan paid $1,348 in 2017 for homeowners insurance. This is on the high side, above the national average of $1,211. The median property value in the state is $235,400—so depending on the value of your home, your premium rate will differ.
|State||Average homeowners premium||National rank from most expensive to least expensive|
Minnesota homeowners insurance rates are higher than average because of the state’s unpredictable winter weather. Hail, heavy snow mass and high winds are especially damaging to your roof. Wind and hail damage make up 38% of claims.
In obtaining online quotes for a $320K home in Minneapolis with $300K liability and $296K personal property, we found premium costs to range widely: from a high of $2,765 at Farmers to State Farm’s $1,568, when bundled with auto insurance. Without auto insurance, that State Farm quote was $2,418.
Discounts can be key to getting the lowest possible home insurance premium payments. Also, while an online quote tool is a great first step, it pays to follow up with a local agent to see if they can get your further discounts or recommend additional coverages. The best agents want to build a relationship with you, so they’ll go the extra step to customize your policy to best suit your needs and pocketbook.
Home insurance coverage options in Minnesota
Most homeowners insurance policies are HO-3 policies. For these, the coverage is broken down into several categories:
- Dwelling or hazard coverage: This pays to repair or rebuild your home and any structures attached to it, such as a porch.
- Other structures coverage: This will pay for repairs or rebuilding of non-attached structures such as a garage or gazebo.
- Personal property: If you lose your possessions in a disaster, you’ll receive a payment, even if they aren’t at your house (say, for something stored at an off-site storage unit or you’re traveling).
- Loss of use: This pays for living expenses, such as hotel costs, while your home is being repaired.
- Personal liability: If someone sues you when they are injured on your property, this coverage will help pay the legal costs.
- Medical payments: This covers medical bills for anyone hurt on your property or by your pets.
Common causes of home insurance losses in Minnesota
Minnesota is known for balmy, pleasant summer weather, but it makes up for that with some of the coldest winter weather in the U.S. With temps that can drop to -60 and up to 170 inches of snow in some locations, it’s at the top of many “worst weather” listings. That leaves you, the homeowner, vulnerable to potential damage.
Minnesota hail storms, for example, can involve softball-sized chunks of ice that wreak havoc on windows, siding and roofs. For this reason, you’ll also want an auto policy with good window coverage. And it’s not unknown for wind storms to blow through with hurricane force, destroying or seriously damaging homes, garages and barns. When wind is combined with snow, drifts can cause structural damage to outlying buildings and homes.
Homeowners should review their policies carefully and talk to their agents about coverage in the event of an extended loss of electricity, flooding from sump pump backups or other plumbing mishaps related to a sudden thaw.
Frequently asked questions
What is the cheapest homeowners insurance in Minnesota?
The cheapest Minnesota homeowners insurance is based on multiple factors, including the replacement value of your home, its age and condition and even such seemingly small considerations like how close a fire hydrant is to your home.
How do I get homeowners insurance in Minnesota?
A good first step is to have an assessment done of your home. But don’t stop there: you also need to know the replacement value, which may be different. Both of these numbers should inform your decision on how much dwelling insurance you need, which is the coverage that would allow you to repair or rebuild in the event of a disaster.
What is hazard insurance and do I need it?
Hazard insurance is just another word for dwelling insurance. It probably makes up the largest part of your homeowners insurance policy, and it’s the amount you would be paid after a claim to rebuild or repair your home.
Is flood insurance included in my home insurance policy?
Probably not. Flood insurance policies are obtained from the government’s National Flood Insurance Program, but it’s an additional cost. Although floods aren’t a top producer of homeowners insurance claims in Minnesota, it may be worth it if you live in a flood plain. To find out if you do live somewhere you’d benefit from flood insurance, talk to your agent or check out FEMA’s Flood Map Service Center, which allows you to enter an address to find out if you are likely at risk of flooding.