6 Best Homeowners Insurance Companies in Minnesota 2023

Minnesota is known as the Land of 10,000 Lakes, which may explain why 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 no Minnesota law requires 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 insure a home for more than its replacement cost knowingly.

Minnesota's average annual cost of homeowners insurance 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:

The 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 in 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.

Allstate Homeowners Insurance Discounts

Allstate offers eight homeowners insurance discounts to help Minnesota homeowners save money on insurance.

• Policy bundling: You can save by buying two or more policies with Allstate.
• Welcome discount: Switch your insurance to Allstate to take advantage of a 10% discount.
• Early signing: Finalize your new Allstate policy at least a week before your existing policy expires to get this discount.
• Claims-free: Homeowners with no recent claims can get a break on their premium.
• New homeowner: If you’re a new homebuyer or bought a newly constructed home, you can get a discount.
• New roof: Installing a new roof can earn you a discount.
• Protective devices: If your home has installed theft prevention or fire protection devices, you can save on your premium.
• Responsible payer: Pay your premiums on time to save money.

Read a full Allstate homeowners insurance editor's review.

State Farm: Best for Inflation Adjustments

We like that State Farm offers high policy limits for homeowners with expensive properties. Still, 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.

Remember that with policy bundling, you pay substantially less than the state average.

State Farm Homeowners Insurance Discounts

State Farm offers only three discounts on homeowners insurance, but they also offer the biggest savings on policy bundling.

• Policy bundling: You can save up to $1,130 annually by purchasing home and car insurance through Allstate.
• Roofing: Replace your roof with impact-resistant materials to qualify for this discount.
• Home security: You’ll get a discount if you have installed smoke, fire, or burglar alarms or have a home monitoring system.

Read a full State Farm homeowners insurance review.

Travelers: Best for Green Homes

Travelers Insurance has protected Americans for 165 years, having issued its first policy in 1857.

The company has a long history of paying claims and providing excellent customer service, and that’s reflected in its 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, significantly lower than the state average.

Travelers Homeowners Insurance Discounts

Travelers provides five discounts to help Minnesotans save on homeowners insurance.

• Home buyer discount: If you bought a house within a year of switching to Travelers, you’ll get a discount on your premium.
• Bundling discount: Save up to 12% if you bundle four or more policies with Travelers.
• Green home discount: If you have built or own a home certified as green by the Leadership Energy and Environmental Design organization, you’ll get a discount.
• Loss-free discount: You'll save money if you’ve never filed a homeowners insurance claim.
• Protective devices. Save if your home has installed burglar alarms, sprinklers, smoke detectors, or smart devices.

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 annually for homeowners insurance with Farmers, which aligns with the state average.

Farmers Homeowners Insurance Discounts

Farmers Insurance offers four discounts to help Minnesotans save money on their homeowners insurance.

• Claims free: You can claim this discount if you have not filed a homeowners insurance claim for at least three years.
• No smoking: Farmers Insurance offers a unique discount for non-smokers thanks to the reduced fire risk in their homes.
• Policy bundling: Buy two (or more) insurance policies from Farmers to claim this discount.
• Security: Install a fire alarm or security system that communicates with local authorities to take advantage of this discount.

Read a full Farmers homeowners insurance review.

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 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.

American Family Homeowners Insurance Discounts

American Family offers nine discounts to help Minnesotans save money on homeowners insurance.

• Age of home: You’ll get a discount if your home is fewer than 15 years old.
• Autopay: Sign up to make automatic monthly payments to save on your premium.
• Policy bundling: You’ll save if you buy two or more policies.
• Full pay: Get a discount if you pay your premium annually in advance.
• Generational: You’ll get a discount if your parents are American Family customers.
• Loyalty: If you keep your policy with American Family for over two years, you’ll get this discount.
• Paperless. You can save money if you sign up to receive your bills electronically.
• Renovation: Renovate your home’s HVAC, electrical, or plumbing systems to qualify for this discount.
• Security: Install a smart home security system to save.

North Star: Best for Affordable Coverage

North Star Mutual Insurance is the only company on our list that started in Minnesota, having opened its doors over 100 years ago.

The company has a long history of paying claims and providing excellent customer service. Still, we picked it for our list because it is Minnesota's most affordable option for homeowners insurance.

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.

North Star Homeowners Insurance Discounts

North Star offers six discounts to help homeowners save money on their insurance.

• Mature homeowner: Get a break on your premium if you’re over 55.
• New/upgraded home: You can get this discount if you live in a newly built or upgraded home.
• Companion policy. North Star offers a combination policy that provides both auto and homeowners insurance at a discounted rate.
• Protective devices: If you have installed fire or burglar alarms, reduce your premium.
• Protected subdivision: You’ll get a break on your premium if you live in a gated community.
• Valued customer: Get a discount if you keep your policy with North Star.

North Star lists a “higher deductible” discount on their website, but all companies have lower prices for higher deductibles, so we’re not listing it as an official discount.

Methodology

How We Selected Homeowners Insurance Companies for Minnesota

We understand that researching homeowners insurance and comparing costs and coverage can be stressful.

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 homes 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 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 provide discounts that can apply to most homeowners.

Technology

Many Minnesotans prefer to do business online or via their mobile devices; not every company provides those options.

We prioritized selecting 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 provided average costs for each carrier on our list, it’s important to note that several factors 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, your costs will likely 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 than 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 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 protects your personal belongings if 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.

1. All structures on your property, including your house, fences, sheds, detached garages, barns, and any other buildings.
2. All personal belongings for you and your family members living with you, whether the belongings are in your home or not.
3. Damage to your property caused by covered events.
4. Personal liability for guest injuries or damage to their property.
5. 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.