Homeowners Insurance in Bloomington, Minnesota (2025)

Bloomington, Minnesota, is home to the Mall of America and plenty of other attractions that entertain tourists and residents alike. These Minnesotans can enjoy all their city has to offer because the peace of mind provided by their homeowners insurance policies allows them to rest assured knowing the important stuff is protected.

So, let’s check out exactly what these suburbanites need to know about their Minnesota home insurance policies, like the average cost, what’s covered, and how they can lower their rates even further. 

Home insurance in Bloomington, Minnesota, costs, on average, about $2,322 annually. The average rate in this Minnesota city is about 17% above the state average, which comes out to about $1,926 annually.

While homeowners insurance is a bit more costly in Bloomington than the average rate in the state, it’s important to note that both numbers are averages and don’t exactly account for the subjectivity of insurance premiums. Insurance premiums are calculated differently for each policyholder. So, the average rate in Bloomington may be a ballpark in which homeowners can expect their premiums to fall.

Although the average premium in this city is a bit above the state average, that hasn’t dissuaded residents from loving their city. In fact, Bloomington, Minnesota was named one of the best cities to live in the country, so premiums likely aren’t unaffordable for those in this city.

When determining your premiums, insurers use several factors about you, your home, and your policy to determine the risk they take by having you as a policyholder. If one or more of these factors point to you being likely to file a claim, you may be considered high-risk and, thus, pay higher premiums to compensate.

While many of the factors insurers consider when calculating your premiums concern your risk of filing a claim, they also consider some key details about your policy. One element of your policy that will significantly affect your premiums is how much dwelling coverage you carry.

In Bloomington, premiums vary by about $790 annually when $100,000 is added or subtracted from dwelling coverage limits. This part of your policy affects your premiums so significantly because it is one of the main elements of your policy. 

Your dwelling coverage will help you repair or replace any of the elements that make up the structure of your home, should they suffer damage from a covered peril. So, if your roof, windows, flooring, siding, or HVAC unit are damaged in a fire, tornado, or robbery, this is the part of your policy you’ll invoke to get coverage. 

While your coverage limits definitely play a role in your premium rates, several other factors play a role, too. Insurers use many things, like your claims history, home age, home replacement cost, credit history, location, and much more, to inform how they set your rates. They’ll even consider things like the likelihood of severe weather and the crime rates in your area. Each of these factors helps insurers determine your likelihood of filing a claim. 

In Minnesota, the frequency and severity of hail storms have become a significant issue for homeowners and insurance companies alike. In fact, complaints have nearly doubled in just three years due to complaints about hail and other weather-related claims. 

So, now that you know how your premiums are calculated, what next? Well, if you’re at a higher-than-average risk of filing a claim, or if you just like saving a few bucks everywhere you can, let’s take a look at how you can lower your premiums. 

There are a few ways to get the cheapest property insurance in Bloomington, but just know the cheapest policy won’t be the same for everyone. Binding a policy from an insurer like Farmers, Travelers, or AAA, some of the cheapest insurers in the state, may get you an affordable policy, but the most affordable policy for your needs may come from an entirely different insurer.

Regardless of your quoted rates, you can lower your premiums even further in a few ways. Let’s take a look at three ways you can make your policy the cheapest one for your needs. 

Firstly, you can reduce your coverage limits to the minimal amounts your insurer allows. While this may not be the best option for everyone, it is a sure way to reduce your rates. Just know that your savings come with a price. If you make a claim where the damage exceeds your coverage limit, the difference must come from your pocket.

Additionally, you can raise your deductible to lower your premiums. These two components of your policy go hand in hand—when you raise one, the other falls. But remember, if you have a high deductible, you’ll end up owing more upfront during the claims process before you can access your coverage.

Finally, one of the best ways to lower your premiums is to apply discounts. This is the least invasive way to lower your premiums because it doesn’t require you to put your savings on the line or sacrifice the coverage you desire. Many insurers offer discounts for all sorts of reasons, like having a home security system or making energy-efficient changes in your home. Additionally, many insurers will allow you to combine your discounts to maximize your savings. 

While you may not need Bloomington flood insurance to fulfill any external requirements, it’s probably a good idea to bind a policy. A homeowners insurance policy doesn’t cover flood damage, so you’ll need a Minnesota flood insurance policy to get coverage for flooding.

While flooding is often caused by heavy rains, it can also be caused by snow melt, something with which many Minnesotans are very familiar. Due to the long, harsh winters and its proximity to many lakes and other bodies of water, you should closely examine your flood risk to determine whether a flood insurance policy is right for your needs. 

Whether it’s good news or bad news, there’s no such policy as the end-all-be-all “best” policy in Bloomington. Instead, each policyholder can build or find the best policy for their needs.

So, to find your best policy, you’ll need to determine what you value most from your policy. Typically, the compromising happens on one of two fronts: cost or coverage. Policies that value coverage more tend to be more costly, and those that are more affordable tend to have less coverage. 

Need help figuring out how your policy will reflect what you value most? Use this guide:

No, home insurance isn’t required by law in Bloomington or any other city in Minnesota. However, if you have a mortgage on your home, your lender will require you to maintain a policy while making mortgage payments. This helps your lender ensure their investment in your house is protected. 

While homeowners insurance isn’t required if you paid for your house in full or if your mortgage is paid off, it certainly isn’t a bad idea to have a policy regardless. A homeowners insurance policy’s protection is often worth the investment it requires from you.

Homeowners insurance is highly subjective in many aspects, but it doesn’t vary when it comes to what types of coverage are included in your policy. While coverage limits and additional coverages will differ for everyone, each policyholder gets the same standard coverages on their policy.

Let’s see what these Minnesotans can expect to see on their policies

Coverage for the elements that make up the structure of your home is provided by the dwelling coverage portion of your policy. If a covered peril damages your roof, walls, flooring, windows, doors, or any other bones on your home, this is the part of your policy you’ll invoke for repairs or a replacement. 

Coverage for the structures on your property that aren’t directly attached to your home is provided by your other structures coverage on your policy. If a covered peril damages your pool, mailbox, fence, shed, or carport, you can invoke this part of your policy for coverage.

While dwelling and other structures coverages help protect the structures on your property, personal property coverage helps protect the things you store inside those structures or elsewhere on your property. So, if your bike, laptop, jewelry, clothing, lawnmower, or any of your other possessions are stolen or damaged by a covered peril, you can use this component of your policy to replace them.

Loss of use coverage can be extremely helpful if your home is deemed uninhabitable after damage from a covered peril on your policy. This coverage can help you cover expenses for necessities like groceries, gas, temporary housing, storage fees, and pet boarding, among other things. 

You can use personal liability coverage if you’re considered liable for damage to someone else’s property or a guest’s injury on your property. It can help you cover costs related to the incident, like your guest’s medical expenses and your legal defense fees.

Medical payments coverage is quite similar to liability coverage, but it will only cover minor medical expenses for a guest’s injuries on your property. It doesn’t require fault to be assigned to be invoked. 

Getting the best Bloomington home insurance for your needs is quick and easy here at Clovered. You can use our free quoting tool to get your unique quotes in minutes. Just input a few simple details about your home and let our system do the rest of the work.

If you prefer to speak to a professional, you can reach one of our licensed insurance agents at 833-255-4117 or [email protected].