Best homeowners insurance in Minnesota for 2022

Jessica Olivo

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Jessica Olivo

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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Known as the “Land of 10,000 Lakes,” Minnesota is not only home to one of the largest “coastlines” in the country, but also forests, farm lands, booming cities, and the biggest mall in the United States. Situated in both the northern and central portion of the country, Minnesota is susceptible to harsh temperatures in the winter and frequent tornadoes from spring to fall. Because of these factors, it’s no wonder that home insurance rates are higher in Minnesota than the national average. 

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The average cost of homeowners insurance in Minnesota is $1,966 per year or $164 a month. This is around 4% higher than the national average of $1,899 per year. 

But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Minnesota.  

Best homeowners insurance companies in Minnesota

Of the companies we evaluated, Auto-Owners Insurance’s average annual policy cost of $1,159 is the cheapest, well below the state average of $1,966. At $2,351 per year, State Farm has higher average rates, but it also has a slightly better J.D. Power rating. 

Policygenius analyzed thousands of quotes from the 5 largest Minnesota insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Minnesota residents to find the best homeowners insurance in Minnesota.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,351

835

American Family

$2,044

831

Farmers

$1,394

813

Auto-Owners Insurance

$1,159

831

Allstate

$3,202

829

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

As mentioned above, State Farm comes in strong with customer satisfaction, which can be a huge plus to consumers. Its large array of online and mobile tools make it easy to get a quote, make a payment, or submit a claim.  

How to get a quote

Online through State Farm

American Family

American Family logo

American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.

Pros

  • Unique coverage add-ons, like matching siding insurance and hidden water damage coverage

  • Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together

  • Earn a $100 credit toward your deductible for ever year you go without filing a claim

  • File claims online or on its mobile app — with 24/7 claims support

Cons

  • Doesn't offer extended or guaranteed replacement cost coverage

  • Above-average customer complaints according to the NAIC

Why American Family tops our best list

American Family offers many ways to save, including several discount options. Not only can you save by bundling your home and auto policies, but you’re also eligible for discounts if you insure a new or renovated home, enroll in auto-pay, or if your home has certain safety features installed. You can also earn a $100 credit on your deductible for each year that you don’t file a claim. 

How to get a quote

Online through American Family

Farmers

Farmers logo

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

  • Several discounts and unique ways to save, including claim forgiveness and declining deductibles

  • 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

  • Offers extended and guaranteed replacement cost coverage options

  • File claims online, via text, on its mobile app, or by calling its claims center

Cons

  • Rates are typically more expensive

  • Below-average customer satisfaction ratings

  • No repair network to help you find a certified contractor or repair professional after filing a claim

Why Farmers tops our best list

If you’re looking for a company with several coverage options, Farmers is your best bet. Its three coverage tiers include all of your standard coverages and more, allowing you to choose a level of protection that best suits your needs. 

How to get a quote

Online through Farmers

Auto-Owners Insurance

Auto-Owners Insurance logo

Auto-Owners is the 12th largest home insurance provider in the U.S. thanks to its low rates, numerous discounts, and robust coverage options — including inland flood insurance.

Pros

  • Excellent coverage add-ons, including inland flood insurance, guaranteed replacement cost, and equipment breakdown coverage

  • Flood insurance covers belongings in your basement — a rare find

  • Save on premiums by bundling policies, paying off your mortgage, choosing a high deductible, having a backup generator, and more

Cons

  • Can't file claims online — you must call or visit an agent to get started

Why Auto-Owners Insurance tops our best list

Auto-Owners Insurance has the lowest average rates in Minnesota, making it a popular option for residents looking to save on coverage. Its low rates are accompanied by a list of discounts for everything from paperless billing to paying premiums on time or having an automatic backup generator. 

How to get a quote

By calling an Auto-Owners Insurance agent

Allstate

Allstate logo

Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.

Pros

  • Several coverage add-ons, including ones for roof surfaces, water backup, green improvements, and mold protection

  • 8+ discounts, including autopay, bundling, zero claims, and new homebuyer

  • Get up to 25% off your premiums when you bundle home and auto insurance

  • Excellent customer service and claims satisfaction ratings

  • File and track claims online or through its mobile app

Cons

  • Rates are typically high compared to competitors

Why Allstate tops our best list

While Allstate’s rates are higher than the Minnesota average, it offers several ways to trim costs, including a 25% discount when you bundle your home and auto policies. If customer service is an important factor to you, Allstate delivers there as well. 

How to get a quote

Online through Policygenius or Allstate

Cheapest homeowners insurance companies by city in Minnesota

Looking at average home insurance costs for the 15 most popular insurers in Minnesota, we found that the cheapest homeowners insurance company in almost every city in the state is Auto-Owners Insurance, with most rates falling between $900 and $1,300. Farmers also has cheap coverage options, with rates around $1,200 in some cities. 

While insurance companies will consider many factors when determining your home insurance rates, your home’s location has perhaps the biggest impact on your final premium. But even if home insurance is expensive where you live, you can often find affordable coverage in Minnesota.

City

Company

Average yearly cost

Ada

Auto-Owners Insurance

$1,085

Adams

Auto-Owners Insurance

$1,103

Adolph

Auto-Owners Insurance

$1,039

Adrian

Auto-Owners Insurance

$1,099

Afton

Auto-Owners Insurance

$1,329

Ah Gwah Ching

Auto-Owners Insurance

$1,127

Aitkin

Auto-Owners Insurance

$1,205

Akeley

Auto-Owners Insurance

$1,004

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Shopping for homeowners insurance in Minnesota

Shopping around for home insurance and comparing rates is a great way to make sure you’re getting the best home insurance at the most affordable price. While you don’t want to overspend on coverage you don’t need, you also need to make sure your house is sufficiently covered. 

In this section, we break down the average annual home insurance rates in Minnesota for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Minnesota.

Minnesota home insurance costs by coverage amounts

Dwelling coverage pays to repair or rebuild your home after a covered loss. It’s important to have enough of this coverage to pay for a full rebuild of your house in the event of a disaster.  

In Minnesota, there is a $2,000 difference between a home insurance policy with $100,000 and $500,000 in dwelling coverage.

Dwelling coverage amount

Average yearly cost

$100,000

$987

$200,000

$1,474

$300,000

$1,966

$400,000

$2,484

$500,000

$3,038

Personal liability coverage pays for medical or legal bills if you’re held legally responsible for someone else’s injury or property damage. All of your assets — including your home, vehicles, and income — can be factored in the amount owed to the injured party, so it’s important to have enough liability coverage to cover your net worth.

The table below shows there is very little difference in cost between a policy with $100,000 and $500,000 in liability coverage. Since the higher coverage won’t make a big impact on your overall premium, it’s a smart choice to opt for the maximum coverage limit.

Liability coverage amount

Average yearly cost

$100,000

$1,951

$200,000

$2,101

$300,000

$1,966

$500,000

$1,977

Minnesota home insurance costs by deductible amount

Your homeowners insurance deductible is the amount you’re responsible for paying on each claim before your insurance kicks in. You have to pay your deductible on every claim, so if your house is located in a tornado-prone area of Minnesota, you may want to consider a medium to low-priced deductible.

But a higher deductible also means lower policy premiums and potentially hundreds in savings each year. Minnesota residents can save around $450 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$2,238

$1,000

$1,966

$2,000

$1,789

Home insurance discounts in Minnesota

Most companies offer insurance discounts for home safety features that may already be installed in your house, like a fire or burglar alarm. While the crime rate in Minnesota is lower than the national average, residents in higher crime areas like Minneapolis and Waite Park may want to take advantage of these incentives to help keep insurance costs down. 

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Minnesota with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$1,966

Smoke alarm

$1,960

Burglar alarm

$1,896

Home insurance companies in Minnesota for dog owners

Though dog owners may disagree, there are certain dog breeds that are considered to be “dangerous” due to higher instances of bites and attacks. As a result, insurance companies may charge higher rates if you own one of these dogs.

With an average rate of $1,159 per year, Auto-Owners Insurance has the cheapest home insurance rates in Minnesota for a home with a dangerous dog breed, while Allstate’s average yearly premium of $3,202 is the highest. 

Company

Average yearly cost

Auto-Owners Insurance

$1,159

Farmers

$1,394

American Family

$2,044

State Farm

$2,351

Allstate

$3,202

Home insurance companies in Minnesota for poor credit

Insurance companies will also look at your credit score when determining your home insurance rates. If you have a good credit score, your insurer will likely view you as more financially responsible and less likely to rely on home insurance to cover the cost of smaller damages or losses. 

However, the opposite is true if you have a low credit score. Fortunately, not all companies weigh this factor as heavily when calculating your rates.

With an average rate of $2,457 per year, American Family has the cheapest home insurance rates in Minnesota for a homeowner with poor credit, while Auto-Owners Insurance’s average yearly premium of $12,247 is the highest. 

Company

Average yearly cost

American Family

$2,457

Farmers

$2,864

State Farm

$4,052

Allstate

$5,102

Auto-Owners Insurance

$12,247

Home insurance companies in Minnesota for pool owners

Having a swimming pool on your property can, unfortunately, lead to injuries, which puts you at higher risk of having to file a liability claim. And because of this, insurers are more likely to charge you higher rates if you have a pool.  

With an average rate of $1,159 per year, Auto-Owners Insurance has the cheapest home insurance rates for Minnesota homes that have a swimming pool, while Allstate’s average yearly premium of $3,202 is the most expensive.

Company

Average yearly cost

Auto-Owners Insurance

$1,159

Farmers

$1,394

American Family

$2,044

State Farm

$2,351

Allstate

$3,202

How to buy homeowners insurance in Minnesota

With so many factors to consider, buying homeowners insurance can seem complicated, but it doesn’t have to be. Rates in Minnesota may be slightly above the national average, but a Policygenius agent can help save you money. Here are some tips.

  1. Reach out to a licensed Policygenius agent. If you have questions about home insurance, our experts have the answers you’re looking for. A Policygenius agent can help you decide on coverage options, compare quotes, and purchase a new policy.

  2. Consider special coverage options. If your house is on a lake that may be susceptible to flooding, look into additional flood insurance to cover unexpected costs. 

  3. Ask about the Minnesota FAIR plan. If there are any environmental reasons standing in your way of purchasing home insurance, look into the Minnesota FAIR plan for last-resort coverage. 

  4. Figure out how much you can afford to pay for your deductible. If you anticipate making multiple claims a year, consider a lower deductible option. 

  5. Compare quotes from a Policygenius agent. Once you have your quotes, a Policygenius agent can help review your coverage options and choose the best company for your home.

  6. Choose your policy, sign it, and pay your first premium. When you work with a Policygenius agent, they will complete the required paperwork so all you have to do is sign on the dotted line and pay your premium. Leave the rest to us!

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Frequently asked questions

What is the average cost of home insurance in Minneapolis?

The average rate for insurance in Minneapolis is $2,142, which is more than the state average of $1,966. Minneapolis has a higher crime rate than much of the state, which could be a contributing factor to the high insurance costs.

If my poor credit score is affecting my insurance rate, what can I do to improve it?

Paying bills on time and keeping your credit card balance down are two good ways to improve your credit score. By managing your money carefully, you should see an improvement over time.

Is it required to have homeowners insurance in Minnesota?

While you are not legally obligated to purchase homeowners insurance, your mortgage lender may require it as a stipulation for extending you a loan.

How can I lower the cost of homeowners insurance?

Many companies that offer home insurance in Minnesota offer discounts that can lower your premium. Ask your insurance agent what discounts are available to you.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.