Minnesota Home Insurance

If you own a home in Minnesota, you need to protect it with homeowners insurance. Homeowners insurance covers your property and personal belongings in case of damage or theft, as well as your liability if someone gets injured on your premises. Here are some details of Minnesota home insurance requirements, laws, policies as well as average costs and best companies.

Requirements: Minnesota does not require homeowners to have insurance by law, but most mortgage lenders will require it as a condition of the loan. Even if you own your home outright, it is still a good idea to have insurance to protect your investment and avoid financial hardship in case of a disaster.

Laws: Minnesota law prohibits an insurance company from knowingly insuring a home for more than its replacement value . Typically, the minimum coverage is 80 percent of the replacement value of the house . A home with a replacement value of $120,000, for example, would typically be insured for $96,000. However, you may want to have more coverage if you have expensive items or improvements that are not included in the replacement value.

Policies: Homeowners insurance policies vary in terms of what they cover and how much they cost. The most common types of policies are HO-2, HO-3, and HO-5. HO-2 is the most basic policy that covers 16 named perils such as fire, windstorm, theft, and vandalism. HO-3 is the most popular policy that covers all perils except those specifically excluded such as flood, earthquake, or war. HO-5 is the most comprehensive policy that covers all perils unless they are specifically excluded and also provides higher coverage limits for personal property.

Average costs: According to the Insurance Information Institute, the average annual premium for homeowners insurance in Minnesota was $1,348 in 2017, which was higher than the national average of $1,211. The cost of homeowners insurance depends on many factors such as the location, age, size, and condition of your home, the amount and type of coverage you choose, your deductible, and your credit score.

Best companies: There are many insurance companies that offer homeowners insurance in Minnesota, but some are more reputable and reliable than others. You can compare different companies based on their ratings, reviews, customer service, claims handling, discounts, and prices. Some of the top-rated companies in Minnesota are State Farm, American Family Insurance, Allstate, Farmers Insurance Group, and Auto-Owners Insurance Group.