Is Home Insurance Expensive In Minnesota?

The average home insurance policy in the U.S. costs $1,899. The average home insurance policy in Minnesota costs $1,966 per year. However, “average” shouldn’t be confused with “minimum,” and it’s important to note that Minnesota has home insurance policies that are nearly half the rate of the national average (Auto-Owners Insurance, for example, has an average yearly home insurance that costs under $1,000 in some cities).

How Does Location Impact Home Insurance Costs?

Location indicates crime rates and propensity for harsh weather conditions. Labor shortages and economic inflation also drive costs higher for home insurance and the market as a whole. In fact, from May 2021 to May 2022, unfavorable market conditions increased Minnesota home insurance costs by nearly 14%.

How Can I Make Costs Lower?

As a homeowner looking for affordable insurance, you have some control over how much you’ll pay. Such effective strategies include:

  • Shopping around for affordable policies. There’s no shortage of home insurance policies, and some will cost less despite having just as many features as other choices
  • Opting for higher deductibles. The deductible is the amount you pay before your coverage kicks in. The higher it is, the lower your premiums will be

Sometimes, companies give lower rates to individuals based on professions, like first responders, nurses, and teachers. Insurers also discount individuals who install safety features such as smoke alarms, deadbolts, and burglar alarms. Other companies provide lower rates based on the length of time without filing claims.

What Causes Higher Rates?

Aside from differences in companies’ standard rates, higher rates result from choosing more extensive coverage, having features on the property that could lead to dangerous situations (e.g., swimming pools and large dog breeds), and having a bad credit score.

More extensive coverage leads to more disbursement on your insurer’s part. Increased premiums have to make up for that. For example, a policy with $100,000 in dwelling coverage will cost roughly $987 per year. For $500,000, the yearly costs would rise to $3,038.

Pools and large dog breeds increase the likelihood of liability claims. This impacts rates differently depending on the company, and while it generally costs more, it’s typically not so much to deter you from owning a swimming pool or a dog.

Bad credit varies widely. For insurers like American Family, the average annual rates for individuals with bad credit are $2,457. On the other hand, Auto-Owners Insurance (which usually has the lowest rates of all companies) has annual rates upwards of $12,247 for those with poor credit.

Get The Lowest Rates Now

All Things Insurance specializes in getting you the best coverage for the lowest price. We’ll help you choose from many different policies and get you the one that best fits your needs. Call us today at (763) 645-5450 to get started.