Finding a good price on home insurance is a top concern for many homeowners. If you want to find good coverage at a reasonable price, comparison shopping is your best bet. We evaluated average rates for large insurers to help you find the best cheap homeowners insurance in Minnesota.

Cheap Home Insurance in Minnesota Cost Comparison

It’s wise to compare home insurance quotes if your goal is to find cheap homeowners insurance. Home insurance companies assess risk differently, so the price for the same policy can vary significantly among insurers. You won’t discover which company offers the best price without comparison shopping.

Home insurance company Average annual home insurance cost in Minnesota
$1,231
North Star
$1,447
Western National
$1,522
AAA
$1,529
$1,604
$1,731
West Bend
$1,903
$2,012
Secura
$2,031
$2,287
$2,504
$3,090
$3,103
Source: Quadrant Information Services, based on dwelling coverage of $300,000

When shopping around, don’t ignore what companies have to offer beyond price. The best home insurance companies will offer not only a reasonable rate but provide coverages that match your needs.

Minnesota Homeowners Insurance Cost Factors

Finding cheap home insurance in Minnesota will depend on the following factors:

  • Your home insurance claims history
  • The age of your house
  • The fire rating of the home
  • Your location
  • Your credit
  • Your property’s claims history
  • The building materials, such as wood vs. masonry
  • The cost to rebuild the home
  • Policy limits and coverage amounts
  • Claims deductible

When shopping for home insurance quotes, all of those factors will play a part in what a company provides as a cost estimate.

 

What Does Homeowners Insurance Cover in Minnesota?

Standard homeowners insurance (often called an HO-3) covers your house for any problem that’s not excluded in the policy. Common exclusions include floods, sinkholes, nuclear hazard, earthquakes, war, wear and tear, vermin and insect infestations.

Your personal property is covered for specific “perils” (problems) in a typical home insurance policy. Fires, riots, tornadoes, theft and vandalism are just some of the problems covered by home insurance.

It’s a good idea to review how home insurance works to protect you so you can best determine how much home insurance you need.

The main categories of coverage your standard home insurance plan fall into:

  • Dwelling: This category of coverage pays the costs to repair and rebuild your house and its attached structures, such as a deck, garage or balcony.
  • Other structures: Units not attached to your home, such as a carport, fence or shed, are covered under this type of coverage.
  • Personal property: This type of home insurance pays to repair and replace your belongings, such as kitchen appliances, clothing, rugs, toys and furniture.
  • Liability: This category of coverage pays for property damage and injuries you accidentally do to others. For example, if your dog bites a guest, liability insurance can pay for court judgment or settlement and your legal defense fees.
  • Medical payments to others: This coverage pays for small medical claims made by a non-household member, regardless of fault. For example, if a small child slips on your kitchen floor and knocks out a tooth, it can pay for urgent care costs. Coverage amounts are minimal, usually capped around $1,000.
  • Additional living expenses: If you can’t stay in your home due to a problem covered by your policy (like a tornado), additional living expenses coverage pays for extra costs such as hotel bills, restaurant meals, pet boarding, laundry and other extra costs.

 

What’s Not Covered by Minnesota Homeowners Insurance?

Standard home insurance policies commonly exclude floods, earthquakes, sinkholes, wear and tear, power failure, intentional loss, war, vermin and insect infestations, and nuclear hazard.

It’s a good idea to read your policy closely so you understand what is covered and what is not covered by your policy.

Flood Insurance in Minnesota

Standard home insurance plans usually do not cover flood damage. With flooding on the rise, it might be a good idea to consider flood insurance, especially if your property is at risk.

There is limited financial help for flood victims available through the government. Your best bet is to buy your own flood insurance. Most people who buy flood insurance get it through the National Flood Insurance Program (NFIP), a federal program. However, private flood insurance is also an option.

If you find yourself in need of housing after a disaster (one that is not covered by your insurance plan or other sources) FEMA’s Individuals and Households Program (IHP) can provide monetary and direct assistance.

Tips for Buying Homeowners Insurance in Minnesota

No matter if you’re a first time homeowner or if you’re looking to switch insurance plans, you will want a policy with great coverage at a good price. Here are some home insurance shopping tips:

  • Assess your rebuilding costs. Ask your insurance company or your insurance agent to give you an estimate to rebuild your home. This will be based on local labor and material costs. Your dwelling coverage amount should be equal to this estimate.
  • Evaluate how much liability coverage you need. A good rule of thumb is to have enough liability insurance to cover what you could lose in a lawsuit, or at least $300,000.
  • Consider add-on coverage for your belongings. Certain types of belongings, like jewelry, may have a sub-limit for what will be covered in certain cases, such as theft. For example, your policy might only cover $1,500 for stolen jewelry. It’s a good idea to schedule personal property so your valuables are covered for what they are worth.
  • Think about the benefits of replacement cost instead of actual cash value. Replacement cost coverage pays to replace your damaged items with new items, while actual cash value (ACV) coverage will reimburse you only for the depreciated value. If you have ACV coverage and buy new items you’ll need to make up the difference.
  • Assess coverage gaps. Many homeowners insurance policies offer additional coverage for situations such as home-based businesses, home day care operations and even sump pump backups.
  • Ask for discounts. Insurers offer a wide variety of discounts. For example, your company might offer discounts if your home is in a gated community or has a new roof. Bundling auto and home insurance is generally a good discount.
  • Research financial ratings. Your bank might not finance your mortgage unless you have an insurer with at least an “A” financial strength rating. You can do your research ahead of time through ratings agencies like A.M. Best and Standard & Poor’s. Insurers often have their financial strength ratings on their websites.
  • Compare quotes from multiple insurance companies. Home insurance quotes can vary significantly among companies, so shopping around is a good way to save money.