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Best homeowners insurance in Minnesota for 2024

The best home insurance policies in the North Star State are being written by Allstate, Auto-Owners, Country Financial, American Family and North Star Mutual.

Updated Mar 14, 2024
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Compare the best home insurance companies in Minnesota

By analyzing data from Quadrant Information Services, Bankrate's insurance team determined the 2024 average annual premium for Minnesota home insurance is $2,174, or $181 a month, for $250,000 in dwelling coverage. This is 24 percent more the 2024 national average, which is $1,759 or $147 a month.

We also looked at each company's customer satisfaction scores in the 2023 J.D. Power Insurance Study and assessed financial strength by looking at AM Best ratings. Using this information and other metrics, we assigned each company a Bankrate Score out of a possible 5.0 points to help readers get a quick assessment on the strengths of each company.

Based on our research, the five best home insurance carriers in Minnesota are Allstate, Auto-Owners, Country Financial, American Family and North Star Mutual.

Insurance company
Bankrate Score
Info
Average monthly premium Average annual premium
4.6
Rating: 4.6 stars out of 5
$112
$1,339
4.2
Rating: 4.2 stars out of 5
$267
$3,202
4.2
Rating: 4.2 stars out of 5
$158
$1,900
3.9
Rating: 3.9 stars out of 5
$272
$3,262
North Star Mutual
$118
$1,417
*Premiums are for $250K in dwelling coverage
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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The top 5 home insurance companies in Minnesota

Best for cheaper average rates

Auto-Owners

4.6

Rating: 4.6 stars out of 5

Avg. premium for $250K dwelling

$112/mo

Avg. premium for $250K dwelling

$1,339/yr

Customer satisfaction

834/1,000

Best for bundling

Allstate

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$267/mo

Avg. premium for $250K dwelling

$3,202/yr

Customer satisfaction

809/1,000

Best for customer satisfaction

American Family

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$158/mo

Avg. premium for $250K dwelling

$1,900/yr

Customer satisfaction

813/1,000

Best for premier coverage

Country Financial

3.9

Rating: 3.9 stars out of 5

Avg. premium for $250K dwelling

$272/mo

Avg. premium for $250K dwelling

$3,262/yr

Customer satisfaction

819/1,000

Best for customization

Avg. premium for $250K dwelling

$118/mo

Avg. premium for $250K dwelling

$1,417/yr

Customer satisfaction

Not rated

Additional Minnesota home insurance companies to consider

State Farm

State Farm

Who this may be best for

Homeowners looking for above-average customer service

State Farm is the largest writer of homeowners insurance policies in the U.S., with more than 18 percent of the market share, and there are some good reasons for its popularity. With more than 200 agents in Minnesota, you are likely to find a company representative no matter where you live in the state. It has an above-average ranking from J.D. Power for overall customer satisfaction. If you prefer to do your insurance business online, State Farm has a robust, informative website and mobile app that allows you to view and manage your policies, pay your bill and more. One nice perk: homeowners may qualify for a free fire hazard monitoring device when they purchase a policy.

If you’re interested in a policy, read more about State Farm’s coverage.

Travelers

Travelers

Who this may be best for

Homeowners who wish to personalize their policy

Travelers may be a good choice for homeowners who want solid policy options that allow them to craft their coverage to fit their circumstances. In addition to standard coverage types for your dwelling, property and liability, the company offers a range of add-ons that may be appealing, including a green home endorsement that provides additional protection to cover the costs of repairing or rebuilding with environmentally-sensitive materials after a covered loss. You may want to get quotes from a range of carriers if customer service is your highest priority, though. Travelers ranked near the bottom of J.D. Power's 2023 Home Insurance Study for customer service, and also scored below average for claims satisfaction.

See how a Travelers’ home insurance policy stacks up in our review.

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Finding cheap home insurance in Minnesota

There are a number of cheap home insurance companies in Minnesota. Finding the right one for you starts by asking for quotes from several companies to see who can offer you the lowest rate. It can also be beneficial to work with a knowledgeable agent who can help you make sure you are utilizing all possible discounts without sacrificing coverage. Back to top Caret Up

Cheapest home insurance companies in Minnesota

Although the state's average rate for home insurance is above the national average, it is possible to find affordable coverage by looking at companies that are known for writing the best cheap home insurance in Minnesota. Bankrate's team has already done the legwork for you, sifting through the insurers writing policies in the state to see who has the most affordable coverage. The following five companies have the lowest average home insurance cost in Minnesota, and may be a good place to start your search.

Carrier Monthly premium for $250k coverage Annual premium for $250k coverage Savings vs state avg. for $250k coverage
$112
$1,339
- $835
North Star Mutual
$118
$1,417
- $757
Auto Club
$127
$1,526
- $648
$155
$1,857
- $317
$158
$1,900
- $274
*Based on $250K dwelling coverage

How to get cheap Minnesota home insurance

Although it's important to have robust insurance coverage in Minnesota to protect your investment in your home and property, no one wants to pay more than they need to for their policy. Fortunately, there are several strategies you can use to save money while ensuring that you are purchasing the best Minnesota homeowners insurance.

  1. Shop around: As you can see from the average rates above, each insurer has its own methodology for determining rates, and two insurers may give you completely different rates for the exact same coverage. So it makes sense to request quotes from several insurers to see who offers you the best rate for your policy.
  2. Consider your deductible: If you can afford to do so, you may want to consider raising your deductible, which should immediately lower your premium. Keep in mind, however, that you would need to pay this amount in the event of a covered peril, so you will want to ensure that whatever deductible you choose is an amount that you are comfortable paying on short notice.
  3. Review your coverage: Understanding how much home insurance you should purchase can be a little tricky. If you're not sure you have the right amount, it could be time for a conversation with a knowledgeable agent. Perhaps there are optional coverage types you can eliminate if you are trying to save money, or you may want to lower your basic coverage limits. An agent can help you understand what you actually need to protect your finances.

Best home insurance discounts in Minnesota

Taking advantage of discounts is another way to save money on your Minnesota homeowners insurance. Almost all insurers offer at least a few discounts, and they can be easy to earn. Consider the following common discounts when you are looking for the best Minnesota home insurance:

Most insurers will offer you a discount, sometimes as high as 25 percent, if you purchase more than one policy from them. Most commonly, this will be homeowners plus auto insurance, but you can check to see if your insurer will honor a discount for other types of policies as well.
Devices such as smoke detectors, sprinkler systems and theft protection systems make your home a safer place, and mean you will be less likely to file a claim, which may earn you a discount.
Smoking in the home can increase your risk of home fires. If you are a non-smoker, ask your insurer if you can earn a discount because of the lower risk.
If you are able to avoid filing claims for a certain number of years—anywhere from one to five, depending on the carrier—you may earn a small discount.
An aging roof can lead to costly claims for damages. If you replace the roof on your house or purchase a home with a fairly new roof, you may be in line for savings on your premium.

How to save on home insurance policy renewals in Minnesota

Once you have purchased affordable coverage in Minnesota, you will undoubtedly want to ensure that your rate stays low each time you renew. Here are some tactics that may lead to your insurer not raising your rates at renewal time.

  • Limit claims. Insurers may increase your rate if you have filed one or more claims in the previous year. Too many claims may even lead them to refuse your renewal. If you have a loss that is not too costly —  near your deductible or only slightly above it — consider footing the bill yourself rather than filing a claim to avoid an increase.
  • Maintain your credit rating. Statistics show that individuals with high credit scores are less likely to file claims. This makes high-credit homeowners desirable policyholders for insurers, and they are likely to earn lower rates than those who have low credit ratings. If you can improve your credit rating even by a small amount, you may be eligible for a lower premium rate.
  • Raise your deductible. The deductible is the amount you pay out of pocket while your policy takes over to pay the rest. If you can afford a higher deductible, you will likely see a lower premium, since it means your insurer will be paying less after a covered claim. Be careful that you don't raise your deductible so high that you would have difficulty paying it, however, if you need to file a claim.
  • Review your policy annually. An informal annual policy audit, either on your own or with the help of an agent, can highlight changes that could be made to lower your premium rate. You may want to change your coverage limits, for example, if a building on your property has depreciated in value or you no longer own it. An audit may also uncover any new discounts that your company has implemented in the past year.
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Understanding home insurance costs in Minnesota

A range of factors may influence the price of your homeowners insurance in Minnesota, from increasing winter storms caused by climate change to local regulations and laws that impact how you rebuild following a disaster. It's important for homeowners to understand the considerations that play a role in determining their coverage, so they can be sure they are prepared for any possible damage, no matter what the cause. Back to top Caret Up

How much is home insurance in Minnesota?

The average cost of homeowners insurance in Minnesota is $2,174 per year for a policy with $250,000 in dwelling coverage. For comparison, the average American homeowner pays $1,759 per year for home insurance.

Minnesota home insurance is more expensive than the national average, and also more expensive than homeowners insurance in neighboring states. In Wisconsin, the average annual home insurance premium is $1,026, and in Iowa, the average rate is $1,688 per year. Minnesota homeowners insurance rates may be higher than the national average because of the state’s unpredictable winter weather.

Minnesota homeowners insurance rates by city

Even within the same state, insurance rates may vary depending on where you live. Regions in the northern part of the state that see more severe winter weather, for example, may have somewhat higher premium rates because of the increased risk of claims related to snow and hail. Areas with higher crime rates may also see increased rates.

  • Brownsville: $1,921 per year — 12 percent below state average
  • Babbitt: $1,936 per year — 11 percent below state average
  • Utica: $1,941 per year — 11 percent below state average
  • Rollingstone: $1,941 per year — 11 percent below state average
  • Duluth: $1,943 per year — 11 percent below state average
  • New Germany: $2,352 per year — 8 percent above state average
  • Saint Bonifacius: $2,324 per year — 7 percent above state average
  • Norwood: $2,312 per year — 6 percent above state average
  • Cologne: $2,308 per year — 6 percent above state average
  • Mayer: $2,307 per year — 6 percent above state average

*Rates are for $250,000 in dwelling coverage

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Insuring your Minnesota home

Common insurance claims in Minnesota include those for damage from wind and hail, and damage from frozen pipes and water damage. Most of this is likely to be covered by a basic HO-3 policy, but consider adding an endorsement for sump pump and water backup if you're concerned about damage to your sewer pipes caused by freezing or flooding. Back to top Caret Up

What does home insurance cover in Minnesota?

Standard home insurance policies cover your home and belongings in two different ways. Your personal property, from clothing to appliances, is covered on a named perils basis, which means you are covered for 16 common "perils." These include the following:

  • Wind and hail: This is the most common claim by homeowners in the U.S., and may include damage caused by winter storms.
  • Water damage and freezing: Minnesota homeowners are likely to be familiar with the potential damage caused by freezing pipes that may crack and cause water damage.
  • Fire and lightning: The third-most common claim in the U.S., damage caused by fires and lightning strikes accounted for nearly 25 percent of claims in 2021, according to the Insurance Information Institute.

Your home and any other structures are covered under an open peril basis, which means that damage to them is covered as long as the damage is not caused by something that is specifically excluded from the policy.

One important fact to know is that flooding is not generally covered in a basic home insurance policy. If you live in a flood plain, or are concerned about flooding from a local waterway, you may want to consider a separate flood insurance policy.

Additional home insurance coverage types in Minnesota

If you live in Minnesota, you may want to look for an insurance policy that includes coverage tailored to your state’s common causes of loss. In addition to the standard offerings on your policy, your insurer is likely to offer optional add-ons, called endorsements, or even additional policies, that provide more complete coverage for your property. Some common endorsements or policies worth considering in Minnesota include the following:

  • Flood insurance: Although flooding can occur in all parts of Minnesota, there are certain parts of the state, like near the Mississippi River, that tend to see more flooding than other areas. Typically, flood damage is not covered in standard home insurance policies. If you’re interested in buying a separate flood insurance policy, you can contact the National Flood Insurance Program (NFIP) or a private company that sells flood insurance.
  • Scheduled personal property coverage: If you own precious or expensive items, scheduled personal property coverage could be beneficial. This coverage allows you to increase your coverage limits for specific items, like jewelry, art, furs or collections.
  • Identity theft insurance: Many home insurance companies offer identity theft coverage, which can help pay for identity restoration services, like credit monitoring and legal fees.
  • Sewer and sump pump backup: This is generally not covered in standard HO-3 policies, the most common type of homeowners insurance. If you have issues with your plumbing or rely on a sump pump to keep your basement dry, it may be worth adding to your policy.

Related content:

Common Minnesota home insurance problems

The insurance industry is increasingly challenged to write affordable policies for homeowners, because of the increase in severe weather brought about by climate change. An increase in winter storms, wildfires and more has led to an uptick in the number of claims files in many states. Although this is most pronounced in states that are coastal, such as Florida and California, even Minnesota homeowners may find themselves paying more for their policies.

Here are a few of the challenges Minnesota residents may have with their insurance:

  • Supply chain issues: Homeowners faced with repairs or rebuilding after a covered claim may notice that supplies such as lumber and other building materials have increased greatly in price since the pandemic. Because of this, insurers are raising their rates to counter the effect of claims that are more expensive than they were a decade ago.
  • Coverage exclusions: Standard policies may have holes in their coverage that could leave homeowners vulnerable to out-of-pocket repairs. One of the most common instances of this is flood damage, which is not covered by HO-3 policies.
  • Limited availability: Homeowners who live in areas of the state that see a higher number of claims may find insurers who are reluctant to write policies. This may leave them with fewer options for coverage, and correspondingly higher premiums for basic insurance policies.

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Recent news in Minnesota homeowners insurance market
  • According to the Minnesota Department of Health, wildfires are becoming larger and more frequent in the state, in part due to the effects of climate change. The Minnesota Department of Natural Resources (DNR), meanwhile, recommends that homeowners clean up all yard waste quickly and take extra care when lighting campfires to avoid sparking a fire. Fires are most common during the spring and summer seasons, and the DNR maintains online fire danger and burning restrictions maps that can help homeowners prepare for any possibility of danger in their local region.
  • The Minnesota Department of Commerce issued an alert for homeowners to be aware of limitations to their homeowners insurance policies, due to an increased number of complaints following winter storms. Some insurers, the alert noted, are now including a separate and higher deductible for hail and wind damage. This has caused an increased number of coverage denials or unexpectedly high out-of-pocket costs after damage from wind or hailstorms.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze the latest rates from February 2024 for 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: $150,000, $250,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
  • 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 will differ.

Bankrate Score

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2024 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech  and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Written by
Mary Van Keuren
Contributor, Insurance

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute