6 Best Homeowners Insurance Companies in Minnesota 2023
Minnesota is known as the Land of 10,000 Lakes, which may explain why so many people are eager to become homeowners there.
Homeowners insurance protects your home and other structures, as well as your personal property, whether you live in a big city like Minneapolis or a small town like White Bear Lake.
While there’s no Minnesota law requiring homeowners insurance, all lenders require proof of coverage before closing on a mortgage home loan; Minnesota law does make it illegal for an insurance company to knowingly insure a home for more than its replacement cost.
The average annual cost of homeowners insurance in Minnesota is $1,880, which works out to about $156 per month.
Compare the coverage and cost of the best homeowners insurance providers in Minnesota picked by PropertyNest expert editors:
Best Homeowners Insurance Companies in Minnesota
- Allstate: Best for Facilitation of Flood Claims
- State Farm: Best for Inflation Adjustments
- Travelers: Best for Green Homes
- Farmers: Best for Extended Liability Coverage
- American Family: Best for Optional Coverage
- North Star: Best for Affordable Coverage
Allstate: Best for Facilitation of Flood Claims
Allstate Insurance has been in operation since 1931 and today is one of the biggest insurance companies in the US.
Because Minnesota is home to so many bodies of water, we selected Allstate as one of the best carriers because they are extremely helpful when it comes to facilitating FEMA flood claims.
We also like that Allstate has a user-friendly website that’s designed to simplify the process of filing and tracking claims.
Allstate’s average monthly cost for homeowners insurance is $240, which is above the state average.
Most homeowners can save money by layering multiple discounts.
Read a full Allstate homeowners insurance editor's review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
State Farm: Best for Inflation Adjustments
We like that State Farm offers high policy limits for homeowners with expensive properties, but we chose them for our list because they offer a unique inflation-adjustment option that can help people save money.
We also like State Farm’s “Good Neighbor” values which emphasize customer service and support.
The average annual cost for State Farm homeowners insurance in Minnesota is $2,000, putting it slightly higher than the state average.
Keep in mind that with policy bundling, you pay substantially less than the state average.
Read a full State Farm homeowners insurance review.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Travelers: Best for Green Homes
- Multi-Policy Discount.
- Loss-Free Discount.
- Protective Device Discount.
Travelers Insurance has been protecting Americans for 165 years, having issued its first policy all the way back in 1857.
The company has a long history of paying claims and providing excellent customer service, and that’s reflected in their ratings.
We selected Travelers for our list because they are the best choice for people with green homes or who are interested in sustainable building.
The average cost of Travelers homeowners insurance in Minnesota is just $1,560 per year, which puts it significantly lower than the state average.
| J.D. Power (out of 1,000) | 794 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
Farmers: Best for Extended Liability Coverage
Farmers Insurance opened its doors in 1928 in California and has expanded to provide homeowners insurance in 41 states.
While Farmers offers reliable coverage at prices in line with the Minnesota state average, we chose them for our list because they offer liability coverage up to $2 million, which may appeal to some homeowners.
We also like them because they offer tiered coverage and excellent customer service.
Minnesota homeowners pay an average of $1,880 per year for homeowners insurance with Farmers, which is in line with the state average.
Read a full Farmers homeowners insurance review.
| J.D. Power (out of 1,000) | 792 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A- |
| NAIC Complaint Index | 0.56 |
American Family: Best for Optional Coverage
American Family Insurance is a solid company with a long history of providing affordable home insurance to consumers in 44 states, including Minnesota.
They have an easy-to-use mobile app that can be used to compare coverage and file claims, but we chose them for our list because they offer some unique optional add-ons that can help you to customize your coverage.
You should know that in order to customize your quote, you’ll need to work with a designated agent since the customization options aren’t included in online quotes.
Homeowners in Minnesota pay an average annual premium of $1,445 with American Family, which is below the state average for homeowners insurance.
| J.D. Power (out of 1,000) | 842 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 0.25 |
North Star: Best for Affordable Coverage
North Star Mutual Insurance is the only company on our list that got its start in Minnesota, having opened its doors over 100 years ago.
The company has a long history of paying claims and providing excellent customer service, but we picked it for our list because it is the most affordable option for homeowners insurance in Minnesota.
We also like that the company offers a broad array of endorsements and riders to help Minnesota homeowners customize their coverage.
North Star’s average annual cost for homeowners insurance in Minnesota is just $980 per year, putting it well below the state and national averages.
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
How We Selected Homeowners Insurance Companies for Minnesota
We understand that it can be stressful to research homeowners insurance and compare costs and coverage.
Using these criteria, we selected the companies for our list of the best homeowners insurance in Minnesota.
Costs
Saving money is a priority for most homeowners because they already have the monthly expense of a mortgage payment plus other expenses.
We prioritized companies whose average costs were comparable to Minnesota state and national averages for our list.
Coverage
Each house or condo is unique, and homeowners should find a carrier that can provide the coverage they need to protect their home and belongings.
We selected companies that have multiple customization options, including tiered coverage, high policy limits, and riders and endorsements.
Customer Service
Good customer service is always desirable and can make the process of buying coverage or filing a claim as easy as possible.
We selected companies with a history of good customer service, particularly those with multiple support options.
Discounts
Discounts are one of the best ways to reduce the cost of homeowners insurance and many policyholders can reduce their premiums with discounts.
We focused on companies that offer three or more homeowners insurance discounts, particularly those that provided discounts that can apply to most homeowners.
Technology
Many Minnesotans prefer to do business online or via their mobile devices, and not every company provides those options.
We made it a priority to select companies with user-friendly websites, mobile apps, and online support that’s easy to access.
What Factors Impact the Cost of Homeowners Insurance?
While we have made sure to provide average costs for each of the carriers on our list, it’s important to note that there are several factors that can impact what you pay for homeowners insurance and may put your costs above the state average.
Policy Limits
You’ll need to buy enough insurance to rebuild your home in the event that it is destroyed, but you may also want to purchase additional protection.
If you opt to increase your liability protection or have a high-value home, then your costs are likely to be higher than the averages we’ve listed here.
Deductible
Every homeowners policy has a deductible and many companies offer an array of deductible options.
You should expect to pay more for a low deductible than you would for a high deductible.
Endorsements and Riders
Standard homeowners policies protect your dwelling and provide limited protection for your personal liability.
If you choose to add endorsements to your policy, you should be aware that each endorsement comes with a price tag that will impact your total cost.
Location
Your home’s location plays a role in determining your cost; for example, homes that are close to water or far from the closest firehouse are more expensive to insure.
The same logic applies if you live in an area with a high crime rate.
How Much Homeowners Insurance Do You Need?
How much coverage do you need to protect your home and belongings?
The easiest way to calculate what you need is to use the estimated cost to rebuild your home as a jumping-off point.
- Dwelling coverage is the bulk of your coverage and should be high enough for you to completely rebuild your home from the ground up in the event it is destroyed.
- Other structures coverage is the coverage that pays for outbuildings and other structures on your property, including detached garages and fences, and it should total 10% of your dwelling coverage.
- Personal property coverage is what protects your personal belongings in the event that they’re destroyed or stolen and should be between 50% and 70% of your dwelling coverage.
- Liability coverage protects you personally if someone visiting your house is hurt or their property is damaged, and in most cases coverage should be between $100,000 and $500,000.
- Medical payments coverage pays a portion of medical costs if a guest gets injured in your home, and is usually limited to between $1,000 and $5,000.
- Additional living expenses coverage pays for you and your family to live elsewhere while your home is repaired or rebuilt, and should equal 20% of your dwelling coverage.
If you add up these numbers, you’ll see that you’ll need approximately twice the replacement value of your home, not including your personal liability and coverage for guest medical payments.
You should note that if you need to schedule high-value items like electronics and jewelry, your personal property coverage may be more than what we’ve indicated here.
What’s Covered by Homeowners Insurance (and What Isn’t)
Homeowners insurance protects you if your home is damaged or destroyed or if your personal belongings are damaged or stolen, but it doesn’t cover everything.
Here are the things that you can expect to be covered by a standard homeowners insurance policy.
- All structures on your property, including your house, fences, sheds, detached garages, barns, and any other buildings.
- All personal belongings for you and your family members living with you, whether the belongings are in your home or not.
- Damage to your property caused by covered events.
- Personal liability for guest injuries or damage to their property.
- Medical expenses sustained by guests in your home.
Each of these coverages will be paid in accordance with your policy’s deductible and coverage limits.
Here are the items that are not typically covered by homeowners insurance.
- Flood damage
- Earthquake damage
- Neglect
- Pest damage or infestation
- Power failure
- Government action
- Nuclear hazard
Some of these items, including flood and earthquake damage, pest damage, and power failure, may be remedied by adding a rider to your policy or purchasing an additional policy, as would be the case with flood insurance.
The three items that may not be remedied include government action and nuclear hazards, which are unlikely to occur, and neglect, which is within your control.
Synopsis
Here at PropertyNest, we think that every Minnesota homeowner should be sure to purchase enough homeowners insurance coverage to protect them if their home should be destroyed along with their belongings.
Keep in mind the factors we have outlined here that can impact the cost of insurance, including the value of your home and belongings, the coverage you choose, and your home’s location.
We suggest obtaining homeowners insurance quotes from a minimum of three carriers to compare costs and coverage.
We also suggest asking about available discounts and taking advantage of any that apply to you to help reduce your costs.
