Best homeowners insurance in Minnesota for 2025

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 $2,628, or $219 a month, for $300,000 in dwelling coverage. This is 18 percent more than the 2025 national average, which is $2,258, or $188 a month.

We also looked at each company's customer satisfaction scores in the 2024 J.D. Power Home 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 an idea of the strengths of each company.

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

The top 5 home insurance companies in Minnesota

Additional Minnesota home insurance companies to consider

State Farm

Travelers

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. Based on what we found, here are the five companies with the lowest average home insurance cost in MN:

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.

• 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.
• 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.
• 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:

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 prevent your rates from rising 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 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. However, be careful that you don't raise your deductible so high that you would have difficulty paying it 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. 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.

How much is home insurance in Minnesota?

The average cost of homeowners insurance in Minnesota is $2,628 per year for a policy with $300,000 in dwelling coverage. For comparison, the average American homeowner pays $2,258 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 $1,162, and in Iowa, the average rate is $2,197 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.

*Rates are for $300,000 in dwelling coverage

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. It’s the second-most common claim by homeowners.
• Fire and lightning: The third-most common claim in the U.S., damage caused by fires and lightning strikes accounted for nearly 22 percent of claims in 2022, 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 near an unpredictable waterway or your property is vulnerable to flooding from the annual snow melt, 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 add-ons worth considering in Minnesota include the following:

• Flood insurance: With the Mississippi River, over 10,000 lakes and the likelihood of significant snowmelt, Minnesota homes are at considerable risk of flooding. 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, sporting equipment 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.

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, especially in areas with higher crime rates and more exposure to severe weather. This may leave them with fewer options for coverage, and correspondingly higher premiums for basic insurance policies.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our 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 highlighting where they fall short.