Minnesota Homeowners Insurance
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Homeowners Insurance in Minnesota: Complete Consumer Guide
Do you live in Minnesota or hope to buy a home here? Let us tell you all about your new home state. The word “Minnesota” is from a Dakota Indian word that means “sky-tinted waters” or “sky-blue waters.” It’s the 12th largest state with 5.5 million inhabitants. Minneapolis is the largest city with over 412K citizens. Tourism is a big industry here, as well as healthcare, finance, technology, food manufacturing and iron ore mining. In agriculture, top crops are: corn, soybeans and wheat. You’ll find farms here full of hogs, dairy cows, beef cattle and turkeys! The nickname for Minnesota is the “North Star State.” Famous Minnesotans include Charles Schulz, Dave Winfield, Prince and Robert Bly.
Types of policy for Homeowners Insurance in Minnesota
There are several types of homeowners insurance policies to choose from. The most common is the HO-3 form. See which one fits your needs.
HO-1 is the most basic and limited type of police, which many insurers do not sell.
HO-2 is still quite basic and not as commonly sold as HO-3. It covers 10 perils.
HO-3 is the most common type of homeowners insurance policy residents in Tennessee have. It typically covers 16 perils.
HO-5 is a comprehensive form of homeowners insurance and the second most common policy type for single-family dwellings.
HO-6-is for condo owners and is a “walls-in” type of coverage for unit owners.
HO-8 is for homes that don’t meet insurer standards for other policy forms. Older homes and landmarks usually have this type of coverage.
What factors affect rates on homeowners insurance in Minnesota?
Several factors play a large role in determining homeowners insurance rates in Minnesota and everywhere in the country. Insurers will consider what materials your home is made of and whether they are fire resistant. They will factor in how much it would cost to rebuild your home. Your credit rating will also impact your rate, as will your marital status and the crime rates in your neighborhood. Each insurer weighs factors differently so it’s important that you shop around before you buy a policy.
Top 5 disasters in the State of Minnesota
Minnesota federally declared Flood as the most common disaster with 28 counts since 1953, followed by Severe Storms, Fire, Biological, and Tornado. Here are the top 5 federally declared disasters in the state of Minnesota:
Source: Federal Emergency Management Agency (FEMA)
How much is homeowners insurance in Minnesota?
The average homeowners insurance policy in Minnesota costs $951.
Source: The average cost of homeowners insurance by state, Business Insider.
Crime Rate: Is Minnesota a safe state?
|2019 Crime in Minnesota
*Rate per 100,000 inhabitants
Safest Cities in Minnesota by Property Crime*
- Big Lake, MN has a population of 11,236 with a Property Crime rate of 4.9 per 1k. The city average home value is approximately $275,221.
- Rosemount, MN has a population of 24,961 with a Property Crime rate of 5.8 per 1k. The average home value there is about $349,522.
- Orono, MN came in third as the safest city in the state of Minnesota and has a population of 20,349 with a Property Crime rate of 6.2 per 1k. Its home value averaged at about $782,682.
- South Lake Minnetonka, MN has a population of 12,762 with a Property Crime rate of 6.9 per 1k. Its average home value is $419,861.
- Minnetrista, MN has a population of 10,527 with a Property Crime rate of 7.2 per 1k. The city home value averaged $537,587.
*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.
Top homeowners insurance companies in Minnesota
State Farm has the highest ratings for financial stability from A.M Best with an A++. There are many options for standard dwelling coverage. Each policy can be customized according to your needs. State Farm also offers discounts for bundling home and auto, for having security devices installed in your home, including sprinklers. You can also set a high deductible to make monthly payments easier.
American Family Insurance is also a great option. A.M. Best awarded the company an A and they earned an A from Standard & Poor’s too, so you never have to worry about the financial stability of your insurer. Standard coverage will protect your home from the most common perils. You also have options for many add ons.
Farmers Insurance can also help you save money on premiums by offering various deductions, especially for newer homes and those updated with new systems. If you have security devices in your home, you’ll also earn a discount. With an A+ from A.M Best, you know your insurer is financially stable and your claims will be paid.
Minnesota Home Insurance FAQs
How much loss of use coverage do I need?
Consider how long you’d need to live outside of the home if a disaster occurred and made your home uninhabitable until it’s rebuilt. Typically, people elect 20 to 30% of dwelling coverage for loss-of-use coverage.
Does Geico offer home insurance in Minnesota?
Yes, there are Geico agents throughout Minnesota
Does homeowners insurance cover erosion?
Erosion is considered an “earth movement” which is typically not covered in homeowners insurance policies. Other earth movements not covered by homeowners insurance include sinkholes and earthquakes. You can buy a separate earthquake policy and add it to your homeowners policy.