Homeowners Insurance in Lakeville, Minnesota (2024)

Lakeville, Minnesota, a southern suburb of Minneapolis and St. Paul, is home to over 75,000 residents. But, while these residents are out exploring the Twin Cities area, enjoying the amenities, how are their homes protected?

Luckily, that’s where Minnesota homeowners insurance comes in. Keep reading to explore how a Lakeville home insurance policy provides these Minnesotans peace of mind. 

On average, home insurance in Lakeville, Minnesota, costs about $2,301 annually, or about 16% above the state’s average rate. 

While this suburb may see average premium costs a bit above the average rate in the state, that doesn’t mean each individual will pay a premium within that ballpark. Since $2,301 is just the average cost of insurance in Lakeville, it’s not a guaranteed price for any resident.

Insurance premiums are highly subjective and are calculated individually for each policyholder. When determining your premiums, insurers consider the risk they take by having you as a policyholder. If you’re likely to file a claim, you’re considered high-risk. 

Insurers use several factors to determine your risk of filing a claim, often concerning common perils for which claims are filed. However, some details about your chosen policy may affect your premiums, too. 

See below how dwelling coverage limits greatly affect the average premium in Lakeville.

When dwelling coverage alone is adjusted by $100,000, the average cost of home insurance in Lakeville changes by a margin of $780 annually. Clearly, this aspect of your policy has significant sway over your premium costs.

While, of course, the amount of coverage you carry impacts your premiums, several other factors do, too. Insurers may consider characteristics of your location, like crime rates or severe weather risks; characteristics of your home, like its replacement cost, age, and construction type; and your personal characteristics, like your credit history, marital status, and claims history. 

Each factor points insurers to a type of claim you may file in the future. If you live in an area prone to hail or wind, like the Twin Cities and surrounding areas, you may pay higher premiums because your insurer expects you to claim damage from this covered peril. 

If you’re unable to find a policy on the standard insurance market, it’s probably because insurers deem you too risky to take on as a policyholder. Homeowners in Minnesota who can’t get a policy on the standard market may be able to get a FAIR plan policy, but this should be treated as a last resort option. These policies typically have minimal coverage for high premiums. 

While insurers mostly control your rates, you hold the reins when it comes to your policy. Let’s see what you need to know about finding the best policy in Lakeville. 

While it would certainly make finding a plan much easier, we can’t really recommend a best provider because there isn’t a one-size-fits-all best homeowners insurance policy on the Lakeville market. Policies from insurers like Travelers, AAA, and Farmers come highly suggested by other Minnesotans for their below-average rates, but only you can decide what’s best for you.

When searching for a policy, you’ll likely have to compromise somewhere. Most often, homeowners must decide what they value more from a policy: cost or coverage. As policies with more coverage tend to cost more, and those with less coverage tend to cost less, you’ll have to decide where you draw the line when it comes to your coverage.

Generally, if you value protection over savings, you’ll find the best policy for your needs is one with high coverage limits and additional coverages tacked on. These coverages, often called endorsements, can add additional perils to your policy or extend your policy to cover specific, valuable items. 

Many insurers offer endorsements for jewelry, like a collection of antique turquoise pieces or your wedding ring. Common among Minnesotans, you may add a water backup endorsement to extend your policy to the (likely) scenario that thawing snow starts a water backup in your home. 

If you value savings over protection, you’ll likely find that the best policy for your needs is the cheapest one on the market. To find this, you’ll likely want to lower your coverage limits to the minimum amount your insurer allows. You may also want to scour quotes to see which insurer offers the best discounts.

No, home insurance isn’t required by law in Lakeville or anywhere else in Minnesota. However, while the law doesn’t require you to maintain a policy, you will need one if you have a mortgage. Mortgage lenders require homeowners to maintain a policy for the duration of their loan.

If you fail to maintain a policy while still making payments on your mortgage, your lender will get a policy for you. This is called force-placed insurance, and it often comes at a detriment to the policyholder. Since mortgage lenders want to ensure your home is protected as best as possible, a force-placed policy will often be far more expensive than a policy you may choose for yourself since the carrier isn’t concerned about your coverage needs or budget.

While home insurance isn’t required by law in Lakeville, many residents still maintain a policy. Home insurance is often highly subjective based on each policyholder, but one thing that doesn’t change is the type of coverage that appears on your standard policy. While there are different policies to choose from and different coverage limits you can select, the standard coverage types that come with the policy you select will always be the same. 

Let’s examine the standard coverages on the most common type of home insurance policy in Lakeville.

While not required, homeowners in Lakeville may consider binding a flood insurance policy to protect their homes from flood damage. Flooding is relatively common in Minnesota and is only becoming more frequent and severe. They don’t call it the Land of 10,000 Lakes for nothing.

Homeowners may want a separate Minnesota flood insurance policy because flooding isn’t a covered peril on homeowners insurance. You can find a flood insurance policy with the National Flood Insurance Program (NFIP) or a private insurer. Our team at Clovered can help you with any flood insurance questions and find the right provider for your circumstances.

No matter what you value from your policy, savings are always a welcome addition to any plan. But, just like most other things in the insurance world, the cheapest policy will be subjective based on each policyholder. 

While premiums will vary from person to person, policyholders can lower their rates in a few steadfast ways. Let’s take a look at the pros and cons of three different ways you can lower your premiums.

If you’re ready to bind your very own Lakeville home insurance policy, you’ve come to the right place. Luckily, you can get quotes right here. Our free quoting tool does the hard work, making it easy to compare policies to find the best policy for your needs with minimal effort. 

If you’d like to chat with a professional about your quotes or have any questions along the way, our licensed insurance agents are standing by to assist you. You can contact a licensed agent at 833-255-4117 or [email protected].