Minnesota STATS
On average, Minnesotans are paying $1,506 every month on homeownership costs. There are 2.5 million homes in the North Star State, 72% of which are occupied by owners.
- Population: 5,611,179
- Average value of homes that’s occupied by owners: $199,700
- Households: 2,153,202
- Average household income: $65,699
- High school grad or higher, percent of people age 25 years +: 93%
- Average travel time to work: 23 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
The “Land of 10,000 Lakes” is filled with natural beauty and is located in the midwestern region of the U.S. Minnesota is the second northernmost state in the U.S. after Alaska, which means winters are very harsh in this region.
Homeowners in Minnesota have to face weather-related troubles throughout the year. In 2008, several tornadoes were recorded in May, which resulted in the loss of properties and crops. Similarly, the tornado outbreaks in 2011 caused many damages in this state. MN is also included among the top five states that sustain hail damage.
All these facts call for an adequate coverage policy for homeowners insurance. Since there are many providers in Minnesota, how to choose which one is the best, in terms of coverage and price? The easiest way is to do your own research. Apart from finding the coverage you need based on your current conditions, it’s important that you know if the company has a good record of paying off their claims. We say this is the most important aspect of choosing your home insurer. Finding an exceptional company that has the coverage you need is the first part. The second part and equally as important is to find the best deal around. After finding your potential insurers, it’s helpful to make a list and then take down the different rates you collect from various providers. This way, you can get an overall picture and choose from the ones offering you the cheapest rates. We aim to help you with our free tool, by giving you a list of home insurers in your area.
This article outlines the mean premiums in MN and in the country. These numbers are good to know when you’re searching for your own policy to see where your quotes are falling in regards to Minnesota’s average. Then, we highlighted three popular home insurers in MN, reviewing aspects of their offered services to get an overall picture of how they perform.
Minnesota average premium vs nationwide
The average premium rate in Minnesota is comparatively higher than the national average because the risks are higher in this state. Using Insurance Information Institute’s (III) latest available data from 2016, we can see that the annual average premium in Minnesota was $1,340 that year, which comes to about $112 per month, while the national annual average is $1,192. There is a total difference of $148 per year between MN’s yearly average home insurance costs and the nation’s average.
Your own rates will vary from these mean numbers as premiums are dependent on a lot of things. If you are living in a small town, your premium may be lower and vice versa. The value of your home, its location and its age are also the determining factors. However, keep these averages in mind and question your insurer if your rates are falling way above the average. Do you have conditions like living in a high-risk area that’s attributed to your premium increase?
Average Minnesota Home Insurance Premiums
| 2016 | 2015 | 2014 | |
|---|---|---|---|
| Monthly average | $112 | $110 | $102 |
| Annual average | $1,340 | $1,323 | $1,219 |
| National annual average | $1,192 | $1,173 | $1,132 |
| Rank | 14 | 13 | 16 |
A Review Of Best Companies In MN By Market Share
It is very important to make sure your home has the proper coverage it needs in difficult times. A state like Minnesota is prone to weather-related disasters such as hail, heavy snowfall, and snowstorms. Therefore, you have to make sure your insurance provider covers all your specific needs.
The following are popular homeowners insurance companies that have been providing insurance services to Minnesotans for years. Before going for any company, take a look at its financial position and customer service from agencies like AM Best, JD Power, and S&P, that work to give a clear picture of the company through ratings and reviews. We reviewed companies that hold the most percentage of the home insurance market share in MN in 2017 from III’s records.
State Farm
State Farm is a reputable company in the market with strong ratings from agencies. This company got an A++ (Superior) for financial strength from AM Best and scored 825 out of 1000 on JD Power’s customer satisfaction survey. Its rating is proof of its timely payments, simple claims process, and satisfied customers. In 2017, this company had a 25.7 percent share in the market.
Its homeowners insurance policy provides coverage for damage sustained due to extreme weather conditions such as storms, lightning, fire, wind, and floods, and situations such as thefts. This policy is suitable for people living in single-family homes, condominiums, farms, and manufactured homes.
This company allows you to get in touch with a qualified worker who can repair damaged floorings in case of floods or other natural disasters through its Premier Service Program. You can also check its Double Check Discount feature where a discount is automatically applied if you are eligible for one. This offer can further reduce your insurance premium rate by 40%. It claims to be available to its customers 24/7 through the phone and web.
American Family
American Family is a private mutual company which is also known as AmFam. It was founded in 1927 and mainly used to deal with property, casualty and auto insurance. This company provides coverage for all the basics like damage due to wildfires, thunderstorms, hail and theft.
This company is the second most popular one in Minnesota with 14 percent home insurance market share. AM Best gave AmFam an A (Excellent) for its financial strength, and JD Power gave it 3 (About average) out of 5 Power Circle Ratings. In the JD Power 2018 U.S. Home Insurance Study, it received a score of 813 out of 1000. This shows that customers are sticking with this company due to satisfaction sustained from AmFam’s services and support.
There is an automatic process that allows its customers to save on premiums if they haven’t made a claim in at least six years or have been a customer of the company for quite some time. You can save more money by installing protective devices, insuring a new or recently renovated home or bundling home and auto insurance policies.
By insuring with this company, you can take advantage of the Dream Vault tool, which allows you to document all your valuables which are covered under the policy. Hence, you don’t need to make extra effort in your time of need and can file a claim efficiently.
Farmers
Farmers was founded in 1928 and is based in California. It offers a variety of insurance coverages including homeowners insurance. It scored an A (Excellent) rating from AM Best for its financial strength, and the JD Power customer satisfaction survey shows a score of 819 out of 1000.
This company works with an extensive network of agents and boasts the lowest cases of customer complaints. In 2017, this company had an 8.5 percent share in the Minnesota homeowners insurance market.
Farmers can help you determine the possible risk of wildfires with the help of its unique risk calculator. This process enables you to get the perfect blend of required coverage with the premiums being easy on your pockets.
There is another program offered by Farmers which allows a claim to be absolved after six months without another application known as the claims forgiveness program. Another fantastic feature offered by Farmers is cosmetic damage coverage, which helps restore wear and tear cosmetic damage that occurs over a long period of usage.
Minnesota Home Insurance Companies: Market Share and Summary of Ratings
| Rank | Insurer | Market Share % | AM Best | S&P | JD Power |
|---|---|---|---|---|---|
| 1 | State Farm | 25.7 | A++ | AA | 3 |
| 2 | American Family | 14.1 | A | NR | 3 |
| 3 | Farmers | 8.5 | A | A | 3 |
| 4 | Allstate | 5.5 | A+ | AA | 3 |
| 5 | Auto-Owners | 5.1 | A++ | AA | 3 |
| 6 | Liberty Mutual | 4.4 | A | A | 3 |
| 7 | Travelers | 4.0 | A | A | 3 |
| 8 | USAA | 3.6 | A++ | AA+ | 5 |
| 9 | Nationwide Mutual | 2.5 | A+ | A+ | 3 |
| 10 | Auto Club | 2.4 | A- | NR | NR |
Source: Insurance Information Institute, AM Best, S&P, JD Power
The Bottom Line
Minnesota is a beautiful state with devastating situations created by the weather. The companies mentioned above will give you great customer service and financial backing. You just have to make sure that you get the right amount of coverage you need for your specific condition. Look into other companies not mentioned here to ensure that you are getting the best deal around.
Your eligibility for discounts, your home’s location, and other details can even lower the premium rate for you. Do your research and go for the best plan according to your situation.
Cottage in Lake Superior in Northern Minnesota via GIPHY
Coverage Details
III ranked Minnesota as the 14th most expensive state for purchasing home insurance in 2016. Nearly 72 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.
Discounts To Help Save
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.
Resources:
Insurance Information Institute
For more assistance, please contact your local state department of insurance:
Minnesota Department of Commerce, Insurance
- 651-539-1500
- consumer.protection@state.mn.us
Check Out Minnesota’s Neighboring States
- Iowa Home Insurance
- Michigan Home Insurance
- North Dakota Home Insurance
- South Dakota Home Insurance
- Wisconsin Home Insurance
