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A homeowners insurance policy helps provide a financial safety net for damage or loss from events such as storms, fires, and theft. To help homeowners in Minnesota, our experts have researched the best homeowners insurance companies in Minnesota. These tips are designed to help homeowners find the best value for the best price.
The cheapest homeowners insurance policies in Minnesota are sold by regional insurance companies. The top two are based in Minnesota, and the third in Illinois:
Homeowners insurance for new homes is typically the least expensive. New homes are less likely to have issues that older homes have. They are built with newer materials, must comply with stricter safety regulations, and insurance companies aren't quite as worried about things going wrong. The cheapest homeowners insurance for new homes in Minnesota comes from these regional insurance companies:
Homeowners insurance for older homes is more expensive than for new homes, due to the wear and tear of age. That's especially true for homes built 50 or more years ago, which are more likely to have plumbing and electrical issues, as well as deteriorating roofs. The top three companies for insuring old Minnesota homes cheaply are:
Homeowner's insurance pays for losses and damage to property if something unexpected like a fire or burglary occurs. When someone makes a claim, however, their insurance rates may rise for a period. The cheapest coverage for people who have previously made a claim is available through:
The average homeowners insurance in Minnesota is $1,636, which is 5% lower than the national average of $1,725.
|Average Rate Category||Minnesota||National Average|
|New home construction||$1,023||$943|
|When making a claim||$1,669||$1,803|
There are many national, regional, and local companies that offer homeowners insurance in Minnesota. The key is finding the best value based on the needs of a homeowner. Here are some other factors to consider.
There are six types of policies designed to cover traditional brick-and-mortar homes, from basic policies to those that offer more features. The types of homeowners coverage are dwelling, other structures, personal property, loss of use, personal liability, and medical payments.
The best home insurance companies offer a wide range of coverage types. Homeowners should look for coverage based on their needs, what they want covered, and their budgets. Common gaps in coverage for those living in Minnesota may be a sump pump (a pump to remove water in a sump basin, usually in basements), sheds and unattached enclosures, trampolines, pools, jewelry, artwork, and a home office or business.
Standard homeowners policies provide basic coverage for damage from disasters such as fire, lightning, or hail. Those who live in areas prone to flood or at risk of earthquakes will need coverage for those potential disasters. Homeowners should consider a policy with high enough limits to cover the cost of rebuilding a home. The adage "you get what you pay for" often applies to homeowners insurance. Creating a home inventory of what would need replacement can help determine if there is enough coverage.
A deductible is an amount the homeowner must pay out of pocket towards a claim before the insurance company pays the rest. The typical deductible is $1,000. The deductible amount a homeowner chooses impacts the premium. Raising the deductible can lower the premium amount. A homeowner's premium would be higher for a $500 deductible, and lower for a $2,000 deductible compared to premiums for a $1,000 deductible.
Many insurance companies offer home insurance discounts. The exact discounts vary, so check your potential insurer's list. One common discount is for bundling of auto, home, and other types of insurance. Before choosing a policy, take into account any discounts you qualify for. Homeowners may get greater value at a lower cost by taking advantage of all the discounts available.
Every region is known for a different set of natural disasters. Minnesota residents, luckily, don't have to worry about earthquakes and wildfires like California. Minnesota homeowners do, however, see more severe winter storms and flooding than other parts of the country. Here are some of the most common homeowners insurance claims in The Gopher State.
Due to Minnesota's northern location, severe winter storms are common. Hurricanes, tornadoes, and winds are also covered under the "wind and hail" category. Per the Insurance Information Institute, claims under this category make up 34.3% of all homeowners claims in the U.S., the largest percentage of claims made.
The second highest category is property damage from plumbing issues and storms. Frozen pipes that burst and water damage from storms make up 29.4% of all claims. Water damage covered by homeowners insurance also typically includes water damage after a fire, roof leaks, or ice dams. Insurance companies generally do not cover water damage due to lack of maintenance, negligence, or intentional damage.
Fire and lightning claims makeup 25.1% of all claims, however, they are the most expensive. with an average cost of $78,838 per claim. Most policies protect the home and its contents if they're damaged by fire. Typical policies cover the home itself, detached structures (like sheds or detached garages), and personal property in the home. Some policies cover only a percentage of personal property losses, so it is important to have an accurate inventory of all belongings.
Homeowners should review their policies every year to determine if they still fit needs. They don't want to be underinsured in the event of a disaster, but also don't want to pay for more coverage than needed. It's also a good idea to shop around and compare prices from other companies every couple of years to find the best homeowners insurance in Minnesota. Here are coverage options to help you compare policies, plus some common discounts to look for.
Homeowners can pick and choose the different levels and types of coverage that best meet their needs. Here are the coverage options:
HO-1: This is known as "basic form," and is the most basic type of policy. HO-1 covers home and personal belongings at actual cash value against typical perils. HO-1 coverage is limited, so many insurance companies no longer offer this type of policy.
HO-2: This is known as "broad form," and while this policy expands on the HO-1 by offering coverage against more than basic perils, it is still limited. It includes protection against things like freezing, electrical surges, volcanic eruption, and damage due to the weight of ice, snow, or sleet.
HO-3: This is known as a "special form," and is one of the most commonly purchased types of coverage. It covers a homeowner against a wide range of risks unless they're explicitly excluded in the policy. HO-3 policies pay actual cash value to replace damaged or lost property. They take into account depreciation, and pay the current market value.
HO-4: This is a standard renters insurance policy and does not apply to homeowners.
HO-5: This is known as a "comprehensive form," and unlike an HO-3 policy, it covers actual replacement value, and automatically includes coverages beyond those of HO-3. It is much broader, and as the name suggests, more comprehensive than HO-3.
HO-6: This is known as "walls-in" coverage, and is a condo insurance policy. It also covers the condo owner's personal belongings.
HO-7: This is a typical mobile home insurance policy. It covers a mobile home and personal property.
HO-8: This type of coverage is for older homes, historic homes, or homes that are architecturally important.
Each insurance company offers its own discounts. These discounts can help homeowners find the best homeowners insurance in Minnesota. Here are the most common:
Many factors affect the cost of home insurance. Where someone lives and how much it would cost to rebuild a home are the two biggest factors. Others include:
Here are the five cheapest cities in Minnesota for homeowners insurance:
|City Name||Average Home Insurance Rate|
Here are the five most expensive cities in Minnesota for homeowners insurance:
|City Name||Average Home Insurance Rate|
The best homeowners insurance in Minnesota provides comprehensive coverage at the best value. It is important to look for cheap homeowners insurance in Minnesota that not only saves money, but adds the necessary protection. Lastly, the right policy can help homeowners with peace of mind, once they know they have enough coverage to protect one of their most valuable assets.
Our Insurance Expert
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The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
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