Homeowners Insurance in Minneapolis, Minnesota (2024)

Minneapolis, Minnesota, half of the Twin Cities and the state’s largest city by population, is a haven for midwesterners who love arts, nature, and, of course, the Jucy Lucy. While these Minnesotans enjoy what their city offers, they maintain peace of mind by ensuring they have the best homeowners insurance in Minnesota.

Key Takeaways:

The average cost of homeowners insurance in Minneapolis is about $2,353 annually, or about 18% above the state average of $1,926 annually. 

Although the average cost of home insurance in the City of Lakes is above the state average, it’s crucial to note that home insurance premiums vary greatly based on the person, insurer, and policy. Insurers gather as much information as possible about each prospective policyholder before accepting an application for coverage and determine your premiums based on that information.

Before we get into the different factors insurers use to calculate your premiums, let’s look at one of the primary determinants of your premiums: your dwelling coverage. Your dwelling coverage is a major facet of your policy, as it will cover the main structure of your home should it suffer damage caused by a covered peril. 

Dwelling coverage protects things like your roof, walls, flooring, plumbing, electrical wiring, and other things that contribute to the structure of your home. When invoked, your dwelling coverage can help you cover the cost of labor, construction, and materials when rebuilding or repairing your home’s structure.

Since dwelling coverage is so important, the amount of dwelling coverage you carry on your policy can change your premium costs.

As you can see, the amount of dwelling coverage you maintain on your policy can change average premiums by a margin of over $800 annually. However, these numbers are just averages and don’t exactly reflect how premiums can change from person to person based on certain characteristics. 

Insurers use several factors to determine your risk of filing a claim when calculating your premiums. The information important to insurers helps indicate how risky you might be as a policyholder. Let’s look at a breakdown of the factors insurers commonly use to determine your risk of filing a claim.

Now that you know the average cost of homeowners insurance in Minneapolis and how it’s determined, let’s focus on how you can find the best policy for your needs. 

The best homeowners insurance in Minneapolis will likely come from AAA, Farmers, or Travelers, but it is ultimately subjective and based on each policyholder. Really, there’s no such thing as the “best” insurer; as any company may be able to prove the policy for your needs at a favorable premium. 

To find the best policy for you and your home, you’ll need to figure out what you value most from your policy: protection or savings. When searching for Minneapolis home insurance, policyholders generally must compromise in one of these areas, so it’s important to determine what’s non-negotiable for you.

For example, those who value protection over savings will likely pay a bit more as they add more coverage than the standard policy., like by adding endorsements or riders. Similarly, those who value savings over coverage will likely sacrifice coverage to save a few extra dollars. 

So, you must figure out which of these two things you value more before you find the best policy for your needs. Once you decide between protection and savings, it’s just a matter of gathering quotes and determining what insurer can meet your needs without sacrificing much. 

Since we’re on the topic of coverage, let’s go over how residents of the City of Lakes can get protection from flood damage. As climate patterns change, Minnesota is experiencing record-breaking flooding, especially in the Twin Cities. Unfortunately, most flood damage isn’t covered by your homeowners insurance policy.

Instead, you’ll need separate flood insurance in Minneapolis for protection against flood damage. Minnesota residents can find more information on flood zones at the Department of Natural Resources and purchase a Minnesota flood insurance policy through a private insurer or the National Flood Insurance Program (NFIP). 

Most people don’t want to spend an arm and a leg when looking for the best homeowners insurance in Minneapolis. Luckily, there are plenty of ways homeowners can save on their premiums aside from sacrificing coverage.

Now, more than ever, it’s important to know how you can save on your homeowners insurance premiums, as rates are rising at astronomical rates in several states. Unfortunately, Minnesota isn’t immune to these rising rates, and homeowners are having difficulty keeping up.

So, let’s look at three ways you can save on your homeowners insurance policy.

        1. Utilize discounts

Discounts are one of the best ways to save on your policy without sacrificing protection. Many insurers offer discounts that can be combined to help you maximize your savings. For example, insurers may offer you a discount if you have a home security system, are a veteran, or if they offer any of the other common insurance discounts like bundling or staying claims-free. 

        2. Adjust your deductible

Another fairly safe way to reduce your premiums is to adjust your deductible. Generally, a policy with a high deductible will have a comparatively lower premium, and one with a low deductible will have a higher premium. 

While policies with high deductibles tend to have lower premiums, it’s crucial to ensure you can still afford your deductible if you have to claim a loss and pay your deductible to receive coverage. 

        3. Tailor your coverage limits

It makes sense that the more coverage you have on your policy, the higher your premium will be. So, if you value savings more than coverage, lowering your coverage limits to the minimum amount required by your insurer or mortgage lender may make sense. It’s crucial to remember that anything exceeding your policy limits will become out-of-pocket costs, though.

While Minneapolis property insurance isn’t required by law, if you bought your home with a mortgage, your mortgage lender will likely require you to maintain a policy for the duration of your loan. Since many Minnesotans use a mortgage to pay for their homes, many Minnesotans must maintain homeowners insurance.

Homeowners insurance policies contain the same general coverage types depending on the type of policy and only vary when it comes to coverage limits and additional coverages. So, let’s look at what coverages Minneapolis residents can expect to see on their policies. 

Finding home insurance quotes in Minneapolis has never been easier. Here at Clovered, we have a free quoting tool you can use to get your unique quotes quickly without leaving your couch. Simply follow a few prompts and let our system do the heavy lifting.

If you’d rather chat with a professional about your quote, we have those, too. You can contact one of our licensed insurance agents at [email protected] or 833-255-4117.