Explore Minnesota Homeowners Insurance State Guides, Laws and Regulations before You Buy Insurance
The North Star State is brimming with natural beauty. From canoeing in the raging rivers of the Boundary Waters, to boating in one of Minnesota’s 10,000 plus lakes, the state affords Minnesotans and visitors several ways to unwind. For those that aren’t too enamored with the outdoors, the North Star State is home to one of the largest malls in the country, the Mall of America, and two vibrant, energetic cities, the Twin Cities (Minneapolis and St. Paul).
Minnesota is virtually landlocked, barring its northeastern tip which borders Lake Superior. As one of its nicknames states, it truly is the Land of 10,000 Lakes. In fact, data suggests there are over 11,800 lakes in Minnesota. Those bodies of water, coupled with the inherent climate of the region, make the state ripe for flooding. Whether its melted snow, or intense rainfall, many regions within Minnesota suffer from flooding. Another natural peril that homeowners within the state must protect against is wind; often due to the intense winter storms that plague the state.
What Does Homeowners and Renters Insurance Cover, and How Much Does it Cost?
Minnesotans enjoy some of the best rental insurance rates in the country, but conversely, some of the most expensive homeowners insurance rates. Property owners in the state pay homeowners insurance premiums that fall within the top fifteen most expensive states in the country, yet renters pay the third lowest premium in the country for insurance.
Average Homeowners and Renters Insurance Premium
Source: Insurance Information Institute (2017)
Given the state’s propensity for experiencing floods, and the fact that this particular peril is typically excluded from the standard homeowners or renters policy, Minnesotans should engage the National Flood Insurance Program (NFIP) for separate flood insurance coverage. For most property owners, the basic homeowners insurance policy will provide adequate coverage. Covering perils such as wind, fire, theft, and a host of others are risks typical renters and property owners in the North Star State will encounter during their policy periods.
Which Property Insurance Carrier Should I Choose?
Minnesota’s homeowners insurance market is fairly concentrated, with the top two insurance carriers controlling over forty percent of the market. Although there’s certainly a concentration of business, there is a great representative sample of carriers, both national and regional, that are in the top five insurance companies in the region, as measured by market share. Thus, don’t feel compelled to partner with the largest, or most popular carrier when searching for homeowners insurance. Be sure to include several national and regional carriers in efforts to find the right coverage.
Top 5 Home Insurance Carriers in Minnesota
American Family Insurance Group
Farmers Insurance Group
Auto-Owners Insurance Co.
Source: Insurance Information Institute (2019)
Minnesotans are spoiled with the amount of nature they are surrounded by. The Twin Cities and the Mall of America also provide a bit of reprieve from the peaceful confines of nature. For those lucky enough to call the North Star State home, or are looking to move there, note that unfortunately homeowners insurance rates are relatively high, but renters insurance rates are some of the lowest in the country.