Best Homeowners Insurance in Minnesota of 2024

After in-depth research, the Guides Home Team found the following to be Minnesota’s best homeowners insurance providers:

• Liberty Mutual: Our pick for discounts
• Allstate: Our pick for extended coverage
• Farmers: Our pick for customizable coverage
• American Family: Our pick for helpful online resources
• Travelers: Our pick for deductible savings

According to 2023 homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in Minnesota is $2,324.00, which is lower than the national average of $2,511.25.

Homeowners insurance rates are ultimately based on how risky your home is to insure. Underwriters, the individuals who assess risk and determine your rates, will consider the following factors:

• Location: The price of a home insurance policy may vary by state and city. One of the critical considerations is the cost of rebuilding in your area. City residents tend to see higher rates than rural homeowners. If you live in an area prone to weather events such as hurricanes or tornadoes, it can also affect your rates. Local crime rates may also be considered, and the company will likely ask how close you live to a fire department, police station and fire hydrant.
• Replacement cost: Home insurance costs are largely based on the cost of rebuilding your home using construction materials that are comparable to the original materials used. To determine replacement cost, the company will ask questions about your home’s square footage, number of bedrooms and bathrooms, age, roof, and architectural style. It will also consider local construction costs.
• Age and condition: Your insurer will also factor in your home’s age and condition. Plumbing systems, electrical wiring and building materials have evolved, making older systems and materials more challenging to repair and replace. Paired with the everyday wear and tear older homes have faced, they can be more costly to insure than newly constructed homes.
• Roof: Damaged roofs can lead to extensive and costly repairs. Some companies offer discounts for home insurance shoppers with fire or impact-resistant roofing materials or recently replaced roofs.
• Credit score: If you have a low credit score of 580 or below, you could pay more for homeowners insurance. Applicants with good credit scores may be eligible for lower rates due to their history of responsible credit use.
• Claims history: The home insurance company will also look at your claims history to determine how likely you are to file a claim. The more claims you have filed in the past, the higher your rates are likely to be. On the other hand, you could be rewarded for a claims-free record by earning special discounts and deductible credits when you purchase or renew a home insurance policy.
• Security features: Arming your home with security features such as sprinklers, fire alarms, security systems and deadbolts can earn you better rates. So can weather-proofing your home with storm shutters or building your home with fire- or impact-resistant roofing materials.
• Renovations: While minor home improvements like a fresh coat of paint won’t impact your home’s replacement value, more extensive renovations and remodels can. If you finish your basement, add a room or make major upgrades, it can alter your home’s valuation and increase your coverage needs. Conversely, some home updates, such as green-home improvements that make your home more environmentally friendly could earn discounts from select providers.
• Policy amounts: How much personal property, dwelling and liability coverage you purchase will significantly affect the cost of coverage. Adding endorsements such as riders for fine jewelry or identity fraud protection can also increase your rates. 
• Deductible: Your deductible, the amount of money you agree to pay out-of-pocket before your coverage is applied to a claim, is adjustable and can impact the cost of coverage. By choosing a higher deductible, you can lower your home insurance premiums. Just note that you’ll be expected to pay more in the event of a claim.
• High-risk structures: You can expect to see higher homeowners insurance rates if you have a pool or a trampoline. These items increase the risk of an accident occurring on your property, leading to a higher likelihood of a liability claim. Removing high-risk structures you don’t use could earn you lower rates.
• Dog breed: Your dog’s breed also factors into liability insurance. If your dog is considered more likely to show aggression or if their bite is likely to cause severe damage, you may have to pay more for coverage. Some dog breeds are excluded from liability coverage altogether. Each company’s list of banned dog breeds varies, so it’s essential to check with individual providers to see how your pet might impact your policy’s cost and coverage.
• Discounts: Each of the home insurance providers in this review offers discounts that can significantly affect your premiums. Most popular companies offer multiple lines of insurance, rewarding individuals who bundle their home and auto policies. Some companies offer unique discounts, such as AmFam’s discount for young homeowners whose parents are also insured by the company.

The average cost of homeowners insurance in Minnesota is $2,324.00 which is lower than the national average of $2,511.25 according to our analysis of homeowners insurance premiums using data provided by Quadrant Information Services. The annual cost of homeowners insurance can vary greatly based on your specific location which can cause your home to be more or less susceptible to risk. Use the charts below to determine the average cost in your specific area before getting quotes from multiple providers.

Minnesota enjoys beautiful weather, but the elements can sometimes cause costly home insurance claims. Specifically, Minnesota residents often have to deal with the perils below:

• Wind damage: Minnesota residents are no strangers to wind damage, particularly those who live on the coast. 
• Flooding: Whether rainstorms or melting snow are to blame, Minnesota residents face flooding frequently.
• Water damage: With snowstorms, ice and heavy rains, Minnesota weather makes water damage a fairly common claim in the state.
• Hail: Minnesota sees a lot of hail storms in the summer, which can inflict severe damage on a home’s roof and siding.

Standard homeowners insurance policies typically cover damage arising from wind and uncontrolled water damage from snow and ice and hailstorms. However, it does not usually cover flooding. If you live in a flood-prone area, a stand-alone policy could be a good idea.

We recommend Liberty Mutual to homeowners in Minnesota due to its affordable coverage, stellar customer service, and high number of discounts. 

However, each provider in this review presents unique advantages. They are highly reviewed for their customer service, cost and coverage. To ensure you choose the right company for your home insurance needs, we recommend comparing quotes from at least three providers.

Get insurance quotes from insurers by entering your ZIP code here or calling 855-948-5219.