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Best homeowners insurance in Minnesota for 2023

Updated Jan 03, 2023
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How Bankrate chose the best home insurance companies in Minnesota

Bankrate gathers rate data from Quadrant Information Services to compare costs across providers in the state of Minnesota. Rates are based on the same coverage limits and deductibles for a 40-year-old married couple with good credit and no recent claims history.

To help Minnesota homeowners make an informed decision on an insurance carrier, Bankrate developed the Bankrate Score. This Score is based on a five-point scale, comparing several company factors, such as customer experience, online and mobile accessibility, coverage options and financial strength. Using the Bankrate Score and cost data, homeowners can decide which carriers offer the best Minnesota homeowners insurance for their individual needs to get quotes from.

Best home insurance companies in Minnesota

Bankrate partners with Quadrant Information Services to obtain up-to-date quoted premium information for insurance carriers in Minnesota. After analyzing the average premiums of these companies, Bankrate’s editorial team also reviewed customer satisfaction ratings as reported in the J.D. Power 2022 U.S. Home Insurance Study, AM Best financial stability ratings, coverage options and available discounts to determine the best home insurance companies in Minnesota.

Auto-Owners
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
J.D. Power
825
/1,000
AM Best
A++
Average monthly premium
$84
Average annual premium
$1,012
Get a quote
Country Financial
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
J.D. Power
830
/1,000
AM Best
A+
Average monthly premium
$202
Average annual premium
$2,421
Get a quote
American Family
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
J.D. Power
842
/1,000
AM Best
A
Average monthly premium
$120
Average annual premium
$1,445
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
J.D. Power
815
/1,000
AM Best
A+
Average monthly premium
$242
Average annual premium
$2,907
Get a quote
North Star Mutual
J.D. Power
Not rated
AM Best
A+
Average monthly premium
$100
Average annual premium
$1,201
Get a quote
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

*Premiums are for $250K in dwelling coverage

Best for cheaper average rates

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 825 AM Best: A++

Average annual premium

$ 1,012 for $250k dwelling
Auto-Owners Insurance Review

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Of the Minnesota homeowners insurance companies in our analysis, Auto-Owners has some of the cheapest rates for home insurance coverage. But that does not mean homeowners have to sacrifice on coverage with Auto-Owners to maintain a low premium. Policyholders can choose several optional coverage to expand their policy, such as special personal property, home cyber protection, water backup of sewer or drains and equipment breakdown. Most notable is its inland flood coverage, which offers broad coverage for homeowners in low-to-moderate flood zones without the requirement of a separate NFIP flood insurance policy. However, if you are a shopper that values tech, there may be better options — while Auto-Owner’s does have a mobile app, customers don’t rate it very highly in the app store.

Best for premier coverage

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 830 AM Best: A+

Average annual premium

$ 2,421 for $250k dwelling
Country Financial Review

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Country Financial offers three options for home insurance coverage: basic, premier and a combination policy. With the combination policy, Country Financial offers broader coverage for direct physical loss to the home’s structure, while the premier policy adds additional broad coverage for damage to your belongings. Besides the basic policy coverage, Country Financial offers several coverage options, like scheduled personal property, earthquake, sump pump and sewer backup and ID theft. While it may not always be the cheapest, Country Financial offers a few discounts you may qualify for to lower your homeowners insurance cost in Minnesota. It may be worth noting that Country Financial is only available in 19 states. Homeowners who plan on moving out of Minnesota may want to ensure that Country Financial serves their new location.

Best for customer satisfaction

Rating: 3.1 stars out of 5
3.1 Bankrate Score
JD Power: 842 AM Best: A

Average annual premium

$ 1,445 for $250k dwelling
American Family Insurance Review

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American Family is another carrier option with an average rate below Minnesota’s statewide average for home insurance. It also scored well above the industry average in the J.D. Power 2022 U.S. Home Insurance Study and has fewer complaints than the baseline per the National Association of Insurance Commissioners (NAIC). These signs indicate that Country Financial could be an excellent choice for homeowners who value top-notch customer service. You may also be interested in adding optional coverage types to meet your home insurance needs, like matching siding protection, equipment breakdown for appliances and sump pump and water backup coverage. Although AmFam has fewer discount options than other Minnesota insurers, the cheap rates could make up for the lack of potential discounts.

Best for bundling

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 2,907 for $250k dwelling
Allstate Review

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Insuring your home and auto with Allstate could net you a discount of up to 25 percent. In addition to the multi-policy discount, you could save even more for being claims-free and by paying your premium on time. Allstate also offers homeowners insurance with several coverage options available to personalize a policy, like coverage for sports equipment and identity theft. Allstate also offers a green improvement endorsement, which will pay the additional cost to replace damaged or destroyed property with greener alternatives. Although Allstate offers multiple discount options, it’s average rates are much higher than the Minnesota average.

Best for customization

JD Power: Not rated AM Best: A+

Average annual premium

$ 1,201 for $250k dwelling
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North Star Mutual offers Minnesota homeowners many ways to build out their home insurance policy to meet their specific needs. For instance, homeowners can add multiple types of liability coverage, related private structures, refrigerated food products and endorsements for high-value items, such as recreational vehicles, jewelry, guns and portable tools. As a smaller insurer, North Star Mutual is not rated by J.D. Power and does not have a Bankrate Score. However, its robust policy options may be the right choice for certain Minnesota homeowners.

How much is homeowners insurance in Minnesota?

The average cost of homeowners insurance in Minnesota is $1,785 per year for a policy with $250,000 in dwelling coverage. For comparison, the average American homeowner pays $1,312 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 $928, and in Iowa, the average rate is $1,290 per year. Minnesota homeowners insurance rates may be higher than the national average because of the state’s unpredictable winter weather.

Home insurance in Minnesota

Minnesota can experience extreme weather, especially in the winter months. Storms can put homes at risk for damage and even destruction, which is why having a home insurance policy is valuable.

Common causes of loss in Minnesota

Summers in Minnesota are often warm and sunny, but there is always a risk of severe weather and winters can be brutal. Severe weather can put homes at risk, no matter what time of year it happens. Here are some of the most common causes of loss in Minnesota:

  • Hail storms: Summer storms are especially common in Minnesota. They not only bring rain and winds but can also include hail. Hail can be particularly damaging to your roof and siding.
  • Blizzards: Minnesota gets an average of between 36 and 70 inches of snow each winter. Blizzards and snow storms can damage your home, especially if pipes freeze. Heavy snow that sits on the roof for weeks at a time can also bring additional hazards.
  • Flooding: Flooding happens in Minnesota when snow melts. It can also occur after and during summer rainstorms. Floods can cause structural damage to your home’s foundation and electrical system, as well as damage to your personal property.

Before you decide on a homeowners insurance policy, talk to your insurance provider about what additional coverage options may be right for your home.

Home insurance coverage options 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. You may want to consider the following options:

  • Flood insurance: Standard home insurance policies generally do not cover flood damage. If you are concerned about flooding in your area, you can purchase a separate flood insurance policy from the National Flood Insurance Program (NFIP). Several private insurance companies also sell 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.

Frequently asked questions

Written by
Mandy Sleight
Insurance Contributor

Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products.

Edited by Insurance Editor
Reviewed by Senior wealth manager, LourdMurray