Homeowners Insurance in Rochester, Minnesota (2024)

Rochester, Minnesota, is frequently named one of the best places to live in the United States. Home to the Mayo Clinic, a rich culture, and plenty of opportunities to connect with nature, Rochester residents naturally want to know how to protect their homes and properties while enjoying this great place to live.

Key Takeaways:

On average, Rochester home insurance costs about $2,028 annually, or about 5% above the state average of $1,926 annually. While some Rochester residents may be able to score premiums in this range, just remember, this is an average. Premiums are highly subjective and can vary from person to person.

Premiums are calculated based on several different factors. Some factors may be personal characteristics, while others may be based on your policy, home, or location. For example, one of the main determinants of your premium is your dwelling coverage limit. You’ll likely need more dwelling coverage if you have a large house or your home has a high replacement cost. 

Let’s see how premiums differ based on dwelling coverage levels in Rochester, Minnesota. 

Clearly, when your dwelling coverage limit is adjusted, your premiums are significantly altered. In this example, the average premium differs by about $740 when $100,000 is added or subtracted from your dwelling coverage limit. 

Premiums vary so greatly based on your dwelling coverage limit because your dwelling coverage is, arguably, the main part of your homeowners insurance policy. In short, it protects the elements that make up the structure of your home, like your roof, walls, floors, and all those other key details that make your house liveable. 

The amount of dwelling coverage you need is based on your home’s replacement cost, a term used to describe how much it would cost to rebuild it from the ground up, including labor, construction, and material costs. 

While dwelling coverage and your home’s replacement cost certainly impact your premiums, they aren’t the only factors an insurer considers when calculating them. Insurers also look at things like your credit history, past claims, home age, crime rates in your city, the likelihood of your city experiencing severe weather, and how much construction materials cost in your city. Each of these factors helps insurers figure out a key figure: how likely you are to file a claim.

The factors insurers consider when determining your premiums help them paint a broader picture of the risk they take on by having you as a policyholder. If you live in an old home in a city that experiences severe weather and you’ve already filed many claims, insurers will likely charge you higher premiums because you’re a risky policyholder. 

Now that you know how insurance premiums are calculated, you may have a better idea of what you can expect from your Rochester homeowners insurance policy. Whether you’re concerned about the price of your premiums or not, let’s see how you can get the best policy for your needs, whatever they may be.

Insurers like State Farm, Travelers, and Farmers have some of the cheapest average premiums in Minnesota, but that doesn’t mean they offer the best Rochester homeowners insurance. The best policy is ultimately yours to decide, as everyone values something different when it comes to insurance.

Typically, policyholders will narrow their search to focus on one of two things: cost or coverage. If you value cost more than you value coverage, the best policy for your needs will likely be the cheapest policy you can find, probably from one of the insurers mentioned above.

If you value coverage over cost, though, the best policy for your needs will likely be one with high coverage limits and optional additional coverages. If you go this route, you’ll likely add endorsements to your policy to get coverage for additional perils or items. Common in states like Minnesota, Wisconsin, Michigan, and other states that experience heavy winters, you may add water backup coverage as an endorsement on your policy, extending your coverage in the circumstance of a water backup.

So, whether you value cost or coverage more, the best policy for your needs is out there somewhere. 

While many aspects of homeowners insurance are subjective, policies always follow a pattern regarding standard coverages. The most common type of home insurance in Rochester, Minnesota, is an HO-3 policy.

Let’s go over what coverages you can expect to see on an HO3 policy. 

Dwelling coverage is the part of your policy that protects the bones that make up your home. So, if a covered peril on your policy damages any of the elements that contribute to your home’s structure, like the HVAC system, water heater, siding, roof, doors, windows, floors, your dwelling coverage will help you cover the cost of repairs.

Other structures coverage covers the structures on your property that aren’t attached to your main home. It extends to things like your mailbox, pool, fence, shed, garage, patio, and more, as long as they aren’t attached to your main dwelling.

Personal property coverage covers the things you store in your home and property. It can help you protect things like your furniture, clothing, jewelry, sports equipment, lawn tools, patio furniture, and much more.

Loss of use coverage can help you and your family get basic necessities if your home is rendered entirely unlivable due to damage from a covered peril. It can reimburse you for costs like temporary housing, storage fees, gasoline, groceries, and pet boarding.

Liability coverage can protect you if your liability comes into question after a guest is injured on your property or if you damage someone else’s property. It can cover your legal fees or a guest’s medical expenses.

Medical payments coverage is similar to liability coverage, but it doesn’t require fault to be assigned and can only be used in circumstances of minor injury. It can be used if a guest is injured on your property and needs coverage for medical costs like dental work, diagnostic testing, a hospital visit, or other medical expenses. 

No matter what you value more, cost or coverage, finding the cheapest home insurance in Rochester can feel like finding a four-leafed clover. As home insurance premiums rise nationwide, with Minnesota premiums rising a whopping 39% between 2017 and 2023, scoring some savings on your coverage is a win regardless of what you value most from your policy.

Thankfully, there are many ways to save on your homeowners insurance premiums. Let’s look at the three main ways you can cut costs on your home insurance bills.

The most significant and, perhaps, the most obvious way to save on your homeowners insurance premiums is to lower your coverage limits. Simply put, less coverage means lower premiums. However, there may be better options for some homeowners, especially those who want some extra coverage here and there. 

      2. Apply discounts

The best way to save on your homeowners insurance premiums that doesn’t require you to sacrifice your excellent coverage is to utilize the discounts offered by your insurer. Insurers offer a range of discounts, often combinable, that you can use to maximize your savings. So, whether you have a home security system, are a veteran, can bundle multiple policies, or are otherwise qualified for one of your insurer’s discount offerings, savings come without compromise when you apply a discount to your policy.

      3. Raise your deductible

Another great way to lower your premiums is by raising your deductible. The two costs move together, so as your deductible is lowered, your premium rises, and as your deductible is raised, your premium lowers. Just remember, if you file a claim, your deductible is the amount you’ll have to pay out-of-pocket before receiving coverage. So, don’t raise your deductible so high that you won’t be able to pay it should you file a claim.

Saving money on your homeowners insurance policy may not be such a bad idea because, unfortunately, homeowners insurance doesn’t cover damage caused by most flooding. Instead, Rochester residents who want coverage for flood damage will need to bind a separate flood insurance policy. As flooding happens quite frequently in the Land of 10,000 Lakes, what with the snowy winters and rainy springs, residents may want a Minnesota flood insurance policy.

Home insurance in Rochester isn’t required by law, but it is necessary if you use a mortgage to pay for your home. Generally, mortgage lenders require you to maintain a homeowners insurance policy for the duration of your mortgage so they can ensure their investment in your home is protected. 

Typically, insurers require policyholders to maintain a dwelling coverage limit of at least 80% of their home’s replacement cost. So, if your home’s replacement cost is $250,000, your insurer will likely require you to maintain at least $200,000 in dwelling coverage. This means you may see premiums closer to $1,450 annually because, in Rochester, this is the average rate for a policy with $200,000 in dwelling coverage. Remember, though, that rates are subjective.

So, if you paid for your home in cash or (finally) finished paying off your mortgage, you technically don’t need a policy. However, maintaining property insurance in Rochester may help protect the things you value the most.

Getting quotes for home insurance in Rochester, Minnesota, is quick and easy here at Clovered. Use our quoting tool to generate your unique quotes by inputting a few quick details about your home and letting our system take care of the rest.

If you’d rather chat with a professional, contact one of our licensed insurance agents at 833-255-4117 or [email protected] for assistance.