The Best Home Insurance in Minnesota for 2024
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The average cost of homeowners insurance in Minnesota is $2,375 per year. That’s compared to the national average of $1,915.
NerdWallet analyzed data from numerous insurance companies to help you find the best home insurance in Minnesota in the following categories:
Best for affordability: Auto-Owners.
Best for coverage: State Farm.
Best for consumer experience: American Family and Nationwide.
The rates in our analysis are estimates based on many factors, so your rate may differ.
Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.
Best affordable homeowners insurance in Minnesota: Auto-Owners
Auto-Owners Insurance
Coverage options
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NAIC complaints
Auto-Owners Insurance
Coverage options
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NAIC complaints
In Minnesota, the average annual premium for Auto-Owners is $1,775, which is well below the state average of $2,375.
Based in Michigan, Auto-Owners has been in business for more than a century. Its homeowners policies include all the basics, but you can also add coverage for things like identity theft or the failure of major appliances. Guaranteed replacement cost coverage is another optional add-on, enabling you to rebuild your home after a total loss even if your dwelling coverage limit is too low.
Auto-Owners sells homeowners insurance through independent agents.
Learn more with our Auto-Owners home insurance review.
Best homeowners insurance in Minnesota for coverage: State Farm
Coverage options
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State Farm
Coverage options
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NAIC complaints
As America’s largest insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.
State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.
Learn more with our State Farm homeowners insurance review.
Best homeowners insurance in Minnesota for consumer experience: American Family and Nationwide
Coverage options
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NAIC complaints
American Family
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NAIC complaints
American Family receives fewer consumer complaints than expected for a company of its size. Its user-friendly website offers features such as bill payments, claim reporting, online quotes and general insurance information.
Homeowners may be able to save on their premiums by installing smart-home devices, bundling multiple policies or setting up automatic payments.
Get more information in our American Family homeowners insurance review.
Nationwide
Coverage options
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NAIC complaints
Nationwide
Coverage options
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NAIC complaints
Nationwide offers a robust digital experience, including a website that makes it easy to manage policies, file and track claims, and set up automatic billing. It also has a highly rated app for Android and iOS that allows customers to file and track claims, review policy documents, and set up autopay.
In addition, Nationwide’s policyholders have several ways to get assistance, such as reaching out to their agent or calling the company’s customer service hotline. Outside of business hours, they can use the Nationwide website to get proof of insurance, pay bills and schedule callbacks. A chatbot is also available to answer basic questions.
Learn more with our Nationwide homeowners insurance review.
Full list of the best homeowners insurance in Minnesota
If you’re looking to buy homeowners insurance from a well-rated brand, consider one of these insurers, all of which have a NerdWallet star rating of 4.5 or higher.
How much does homeowners insurance cost in Minnesota?
The average annual cost of home insurance in Minnesota is $2,375. That’s 24% more than the national average of $1,915.
In most U.S. states, including Minnesota, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.
In Minnesota, those with poor credit pay an average of $4,090 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 72% more than than those with good credit, who pay $2,375.
Average cost of homeowners insurance in Minnesota by city
What you pay for homeowners insurance in Minnesota depends on where you live. For example, the average cost of home insurance in Minneapolis is $2,515 per year, while homeowners in Rochester pay $2,190 per year, on average.
City | Average annual rate | Average monthly rate |
---|---|---|
Andover | $2,495 | $208 |
Anoka | $2,485 | $207 |
Bemidji | $2,000 | $167 |
Burnsville | $2,320 | $193 |
Cottage Grove | $2,255 | $188 |
Duluth | $1,930 | $161 |
Eden Prairie | $2,355 | $196 |
Elk River | $2,230 | $186 |
Farmington | $2,385 | $199 |
Hopkins | $2,330 | $194 |
Inver Grove Heights | $2,385 | $199 |
Lakeville | $2,385 | $199 |
Mankato | $2,245 | $187 |
Maple Grove | $2,475 | $206 |
Minneapolis | $2,515 | $210 |
Moorhead | $2,080 | $173 |
Osseo | $2,365 | $197 |
Prior Lake | $2,575 | $215 |
Rochester | $2,190 | $183 |
St. Cloud | $2,145 | $179 |
St. Paul | $2,645 | $220 |
Savage | $2,370 | $198 |
Shakopee | $2,470 | $206 |
Stillwater | $2,365 | $197 |
Winona | $2,070 | $173 |
The cheapest home insurance in Minnesota
Here are the insurers we found with average annual rates below the Minnesota average of $2,375.
Company | NerdWallet star rating | Average annual rate |
---|---|---|
$1,775 | ||
Western National | Not rated | $1,785 |
Auto Club Group (AAA) | $1,825 | |
North Star | 4.0 NerdWallet rating | $1,965 |
$2,320 |
What to know about Minnesota homeowners insurance
You may face certain risks when living in Minnesota. Here are a few of the most common, along with steps you can take to insure your home properly against them.
Winter storms
A standard homeowners policy typically covers damage from winter storms, but it's important to review your policy to make sure you have adequate coverage. You’ll also need to make sure you’re taking the appropriate steps to protect your home. For example, damage from frozen pipes may not be covered if you leave your heat off while out of town.
Some types of winter weather damage might require extra coverage. For example, your homeowners policy likely won’t pay for damage due to a backed-up drain or sewer caused by snowmelt. You’ll need to add that coverage to your policy.
Hail
While your insurance policy may cover hail damage, it’s important to review it carefully, as many Minnesota homeowners are now finding this coverage kicks in only when there’s been substantial damage to their home’s siding or roof.
You may also have a separate deductible for wind or hail damage. These deductibles are often either a flat rate, such as $1,000, or a percentage of your dwelling coverage. For example, your policy may have a $1,000 deductible for most claims and a 1% deductible for hail or wind claims. So if your house has $250,000 worth of dwelling coverage, you’d have to pay for the first $2,500 of hail damage yourself.
Flooding
Most standard homeowners insurance policies do not cover flood damage. In Minnesota, 40% of flood claims over the preceding 30 years came from outside high-risk areas, according to a 2021 report from the state’s commerce department. As a result, you may want to consider purchasing separate flood insurance coverage through the National Flood Insurance Program.
To find out if you’re at risk, check out the Federal Emergency Management Agency's flood maps or visit RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is considered low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.
Remember that while you can buy flood coverage anytime, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.
Wildfires
Homeowners insurance typically covers damage from fires, but it's important to review your policy to ensure adequate coverage and to take steps to protect your home if it could be at risk.
Pay particular attention to your dwelling coverage limit. This is the amount the insurance company will pay to rebuild your house. A significant fire can destroy your whole home, so review your policy and discuss it with your insurance agent to be sure your coverage can help you rebuild if necessary.
Minnesota insurance department
The Minnesota Commerce Department’s Insurance Division oversees the state’s insurance industry and provides consumer protection and information. For example, it provides resources on what’s frequently covered under homeowners insurance policies and tips for filing a claim with your insurance.
You can also file a complaint against your insurance company using the agency's online portal. If you have questions about filing a complaint, contact the customer service department via email at [email protected] or toll-free at 800-657-3602.
Looking for more insurance in Minnesota?
Amanda Shapland contributed to this story.
A previous version of this article incorrectly stated the average cost of homeowners insurance in Minnesota. It has been corrected.
NerdWallet calculated median rates for 40-year-old homeowners from various insurance companies in every ZIP code across the state. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:
$300,000 in dwelling coverage.
$30,000 in other structures coverage.
$150,000 in personal property coverage.
$60,000 in loss of use coverage.
$300,000 in liability coverage.
$1,000 in medical payments coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for homeowners with poor credit.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Star rating methodology
NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full homeowners insurance rating methodology.
Complaint methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
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