The Best Home Insurance in Minnesota for 2024

Auto-Owners and State Farm are among the best home insurance companies in Minnesota.
Kayda Norman
Sarah Schlichter
By Sarah Schlichter and  Kayda Norman 
Updated
Edited by Caitlin Constantine

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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:

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.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

Best affordable homeowners insurance in Minnesota: Auto-Owners

insurance-product-card-logo

Auto-Owners Insurance

4.5

NerdWallet rating 
Auto-Owners offers plenty of ways to customize your policy and save money on home insurance.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected
insurance-product-card-logo

Auto-Owners Insurance

4.5

NerdWallet rating 
Auto-Owners offers plenty of ways to customize your policy and save money on home insurance.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected

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.


Best homeowners insurance in Minnesota for coverage: State Farm

insurance-product-card-logo

State Farm

4.5

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected
insurance-product-card-logo

State Farm

4.5

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected

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.


Best homeowners insurance in Minnesota for consumer experience: American Family and Nationwide

insurance-product-card-logo

American Family

4.5

NerdWallet rating 
Customizable coverage and discounts for smart-home devices.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected
insurance-product-card-logo

American Family

4.5

NerdWallet rating 
Customizable coverage and discounts for smart-home devices.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected

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.

insurance-product-card-logo

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Close to expected
insurance-product-card-logo

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Close to expected

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.


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.

Company

NerdWallet star rating

Average annual rate

5.0

NerdWallet rating 

Not available

5.0

NerdWallet rating 

Not available

5.0

NerdWallet rating 

$4,025

4.5

NerdWallet rating 

$2,585

Auto Club Group (AAA)

4.5

NerdWallet rating 

$1,825

4.5

NerdWallet rating 

$1,775

4.5

NerdWallet rating 

Not available

4.5

NerdWallet rating 

Not available

4.5

NerdWallet rating 

$2,320

4.5

NerdWallet rating 

$2,785

5.0

NerdWallet rating 

Not available

*USAA homeowners policies are available only to active military, veterans and their families.

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

4.5

NerdWallet rating 

$1,775

Western National

Not rated

$1,785

Auto Club Group (AAA)

4.5

NerdWallet rating 

$1,825

North Star

4.0

NerdWallet rating 

$1,965

4.5

NerdWallet rating 

$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

Minnesota Commerce Department. Flood Insurance. Accessed Mar 20, 2024.
. 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.

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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.

Frequently asked questions

Homeowners insurance isn’t legally required in Minnesota, but your mortgage lender may require you to buy it. For more information, read Is Homeowners Insurance Required?

There are several ways to save money on homeowners insurance in Minnesota:

  • Shop around to make sure you’re getting the best rate.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.

  • Bundle your home and auto insurance for a lower overall rate. See the best home and auto insurance bundles.

  • Ask your insurer if you qualify for any home insurance discounts.

Methodology

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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