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Best Homeowners Insurance in Minnesota

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In the Land of 10,000 Lakes, natural disasters and severe storms are the norm in the winter months. From 2005 to 2013, 54 percent of claims were related to natural disaster events.

It’s cold in Minnesota, and flooding, hail, and wind are also main contenders for disaster events.

The Best Homeowners Insurance in Minnesota:

Average Annual Premium in Minnesota

Insurance premiums reflect risk, insured value, and also current loss trends — causing rates to spike following widespread claims. On an individual level, Minnesota has the misfortune of being the state with the highest average increase in premiums for customers following a claim; increases can easily top 20 percent.

Overall, home insurance rates in the state are slightly above average, with Minnesotans paying an average of $1,219 compared to a national average of $1,132, according to data from the Insurance Information Institute.

Discounts

Insurers use discounts both to attract customers and to keep the customers they have. Customers who have multiple policies with the same insurer are less likely to switch insurers as often, so a multi-policy discount is the most common discount, and one of the top discounts in regard to savings.

Claims-free discounts are often the largest discounts on your premium but because your claims history is used to determine your premium, this discount isn’t always obvious.

Common home insurance discounts

  • Multi-policy discounts (bundling home and auto)
  • Discounts for seniors
  • New home buyer discounts
  • Claims-free discounts
  • Loyalty discounts
  • Auto-pay or pay-in-full discounts
  • Home safety features
  • New customer discounts

Flood Insurance

Home insurance covers a lot of risks, but floods are not among them. If one of Minnesota’s 10,000+ lakes appears in your living room, your home insurance policy won’t help — but a flood insurance policy can provide some coverage.

A separate flood insurance policy can be purchased through most insurance agents and premiums range from a few hundred dollars per year up into the thousands. Finished areas and personal belongings kept in basements won’t be covered by a flood policy, but furnaces, hot water heaters, and circuit breakers are part of the building coverage on a flood policy.

Deductibles for flood insurance tend to be higher than many home insurance deductibles and premiums are determined by your flood zone and the insured value of your home and personal property.

Mortgage lenders often require flood insurance for mortgaged homes that are in high risk areas.

Best Home Insurance in Minnesota

Take a look at the best home insurance companies in Minnesota. Get multiple quote to find the best premium.

Pros
  • Fast quote process
  • Complimentary smart home system in some states
  • Claims concierge service
Cons
  • Can’t file a claim online
  • Not available in all states

1. Hippo

Hippo Home Insurance is a relatively new insurance provider that offers a host of coverage types. Hippo Home policies include a number of protections left out of competitors’ policies and it only offers a somewhat antiquated claims process: over the phone only.

Policies are on the more affordable end, and discounts are available for new homeowners and those who act early when they need coverage.

In addition to all the necessities Hippo also offers more coverage than the average insurer for computers, home office equipment, appliances and electronics, and they even insure your babysitter. You can get a quote in as little as 60 seconds. Take advantage of their smart home upgrades to prevent potential issues and have peace of mind with their full replacement costs coverage.

Pros
  • Website provides helpful information
  • A nationwide network of over 18,000 agents
  • Sizable discount on auto policies for customers who also purchase life insurance
Cons
  • Premiums may be higher than some competitors
  • Less flexibility in term lengths

2. State Farm

Minnesotans understand the value of a firm handshake and many appreciate the ability to do business face-to-face. With about 18,000 agents, State Farm maintains its commitment to service its customers in the communities they live in.

As a full-service insurer, policies are available through State Farm for any type of home — from mobile homes, to single family homes, to landlord policies.

If you are shopping for auto insurance as well, be sure to get a quote from State Farm. The company’s multi-policy discount, which reduces the cost for both policies, can be larger than the multi-line discount offered by some competitors.

Pros
  • Offers a wide range of discounts based on safety, security, policy bundles, claim avoidance and loyalty
  • Robust mobile app
  • Large agent network, so help is more accessible
Cons
  • Receives average customer service ratings
  • Higher premiums compared to competitors

3. Farmers

The Farmers Insurance Group of Companies includes its well-known namesake, Farmers Insurance itself, but also includes a number of other lesser-known insurers. This structure allows Farmers to find a policy within its network to meet nearly any insurance need.

A network of nearly 50,000 exclusive and independent agents provide easy access for customers with service needs, coverage questions, or who want to bind coverage.

Replacement cost coverage is available (important in larger claims), and valuables can be added to your policy as scheduled items without a need for a separate policy. Of course, multi-policy discounts are available and Farmers even offers a discount for non-smokers.

4. American Family

With policies for home, auto, life, business, and even farms and ranches, American Family Insurance focuses its core business on 19 states that are a perfect fit for its mix of local market knowledge and products designed to meet the unique needs of consumers in those states.

Home insurance should cover the big risks, and American Family’s policy structure allows customers to choose the coverage they want without buying coverage they don’t need. Multi-policy discounts are available as is a special discount for homes with Smart Home features.

Pros
  • Ease of online service or through an agent
  • Clear claims process
  • Useful mobile app
Cons
  • Average customer satisfaction for claims
  • Optional coverage like yard and garden not available in every state

5. Allstate

When shopping for insurance, it’s always recommended to visit at least one agent in person — and Allstate, with its massive network of exclusive agents, makes it easy to do discuss your insurance needs face-to-face.

Both independent agents and exclusive agents have their benefits, and one of the main benefits of exclusive agents is their comprehensive knowledge of the products they sell because they only sell insurance for one company.

Questions are welcomed with Allstate and a conversation with your local agent can help you understand your policy and coverage in a way that phone service and company websites will never be able to provide quite as well. Discounts are available for bundling policies and a powerful combination of discounts are available for customers who are new to Allstate.

6. Auto-Owners

Don’t let the name mislead you. Auto-Owners Insurance Group offers a lot more than auto insurance, with policies for homes, landlord policies (rental dwelling), farms, and more. Sold through independent agents, Auto-Owners holds its own against some of the most attractive policies in the market.

With 42,000 independent agents selling its insurance products, a local agent is almost always nearby and ready to help with questions or to bind coverage. Guaranteed replacement cost is available and Auto-Owners even offers an option to cover underground service lines to your home, a large gap in coverage with many other insurers.

Auto-Owners’ long list of available discounts, including multi-policy discounts and a mortgage-free discount (handy for seniors), helps you find more ways to save on insurance premiums.

Take Action

Price is an important consideration in many Minnesota households — but with the state’s unique risks to homes, policy features become an equally important part of the insurance buying decision.

At some point in your insurance-buying journey, try to talk to an agent face-to-face for a quote. The exchange, as you describe your home insurance needs, will uncover other risk considerations, answer those lingering questions we all have, and provide you with a better overall understanding of your insurance coverage.

Most of us pay thousands of dollars each year for our combined insurance needs; insurance premiums feel like money better-invested instead of simply spent when we are given the opportunity to understand the coverage we pay for — and to choose the best options to protect our homes.

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