Minnesota Home Insurance

The average annual rate for Minnesota homeowners insurance is $1,219. This is higher than the national average of $1,132 per year, and makes Minnesota the 16th most expensive state for purchasing home insurance. Nearly 71 percent of homes in Minnesota are owner-occupied. Nationwide, approximately 63 percent of homes are owner-occupied. Less than 25 percent of mortgaged homeowners in Minnesota spend 30 percent or more of their annual income on expenses related to home ownership. Throughout the United States, roughly 31 percent of mortgaged homeowners spend at least 30 percent on home ownership costs.

As with other states, Minnesota home insurance covers certain categories. Most homeowner policies include two parts – property insurance and personal liability coverage. Property coverage covers your primary resident and other structures including a garage, any guest homes, tool sheds, and other buildings. However, it excludes structures that are rented out or used for business purposes. Minnesota insurers offer coverage for certain personal property such as furniture and clothing. Pets, electronics used for business, and vehicles are typically excluded from personal property coverage. However, some insurance companies offer discounts for purchasing a home and auto package policy, so you may save money by getting homeowners insurance from the same company that insures your car. You can also ask about getting extended or special coverage for items that are valuable to you but not covered under a standard insurance policy, such as jewelry.

When looking for Minnesota home insurance, keep in mind that several factors can influence your premium rate. If you choose to purchase an all-event coverage plan, you pay more annually for home insurance, but your property is covered against loss from all events, such as flooding, earthquakes, and tornadoes. You can also cut initial costs by raising your deductible, which is the amount of money that you must pay out of pocket in the event of a loss before your insurance company chips in. You can, for instance, double your deductible from the standard rate of $250 to reduce your premium rate by 12 percent. Raising your deductible to $2,500 can reduce your premium rate by up to 30 percent. Choosing to get coverage for specific events can lower your premium rate, but it means that your insurance company will not cover expenses incurred in losses due to excluded events. Minnesota homeowners may get discounts for safety and security systems, such as sprinklers, fire alarms, and burglar alarms.

Minnesota is prone to harsh winters and severe thunderstorms in the summertime. You may find that companies offer discounts for house protection against severe thunderstorms (and consequently wind and hail damage). For example, you may get a reduced premium rate if you live in a mobile home and have tie-downs or ground anchors. Some insures offer lower rates for renovated heating and electrical systems, and for having a renovated or hail-proof roof. Non-smokers may get premium rate discounts, as smoking accounts for a large number of residential fires every year. You should mention existing insurance coverage that you have for a car or a business, as some companies give discounts for a package plan.