Best homeowners insurance in Minneapolis, MN 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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Situated along the Mississippi River, Minneapolis and neighboring St. Paul make up the famous Twin Cities. Known for its thriving arts scene as well as a hub of innovation and Fortune 500 companies, it comes as no surprise that the metro Minneapolis area is one of the fastest growing in the Midwest. 

But like many cities across the country, crime can be a factor in Minneapolis, especially property crime. Homes along the river are also at risk for flooding. These factors and more make homeowners insurance and additional flood protection important for all residents. 

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The average cost of homeowners insurance in Minneapolis is $2,142 per year or $179 a month. This is around 9% higher than the statewide average of $1,966 per year, and about 13% higher than the national average of $1,899. 

However, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Minneapolis.  

Best homeowners insurance companies in Minneapolis

Of the companies we evaluated, Auto-Owners Insurance has the lowest rate with an average yearly cost of $1,229. All five companies scored well with J. D. Power, which means residents of Minneapolis can count on having great customer service and claim satisfaction no matter which company they choose. [1]

Policygenius analyzed thousands of quotes from the 5 largest Minneapolis 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 Minneapolis residents to find the best homeowners insurance in Minneapolis.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,308

835

American Family

$2,144

831

Farmers

$1,556

813

Auto-Owners Insurance

$1,229

831

Allstate

$3,215

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

State Farm is at the top of the pack with an 835 J.D. Power score. Known for their excellent customer service, this company is perfect for residents in Minneapolis looking for advice for first-time home buyers. They also have a convenient mobile app and multiple ways to file a claim. State Farm also offers several discounts, including one for bundling your home and auto policies or having a security system in your home — something city dwellers should consider regardless of insurance savings.

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

One of American Family’s unique advantages is their Diminishing Deductible feature. Customers pay to add the feature onto their policy and then each year they can earn an additional $100 credit towards their deductible. This means that after five years and a $1,000 deductible, you could cut your out-of-pocket expenses in half. 

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

With three comprehensive tiers of coverage, Farmers offers home insurance for most budgets and coverage needs. Their standard coverage is perfect for homeowners who don’t need a lot of extras in their policy, while their top-tiered Premier Coverage adds in additional coverage limits and endorsements. 

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 offers comprehensive flood coverage which is vital for anyone who lives in an area prone to flooding. This protection covers a long list of items that can be affected by flooding, including appliances, carpeting, paneling, blinds, and electrical equipment like air conditioning units, furnaces and water heaters. Auto-Owners Insurance will also cover belongings in your basement that are damaged in a flood — something that isn’t generally covered under traditional flood insurance. 

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

Allstate offers a top-notch customer and claims experience — evidenced by its decent ratings with J.D. Power. Their easy-to-navigate website and mobile app provide multiple ways to easily get a quote, pay your bills, or file a claim. Allstate makes it easy for customers to manage their policy, making it an excellent choice that is worth the occasionally higher premiums.  

How to get a quote

Online through Policygenius or Allstate

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Cheapest homeowners insurance companies by ZIP code in Minneapolis

Looking at average home insurance costs for 15 of the most popular companies in Minneapolis, we found that the cheapest home insurance in the city can be found in the 55402 ZIP code (Downtown West/Greater Central) and the 55415 ZIP code (Downtown East/Greater Central) with Auto-Owners Insurance. The average Auto-Owners Insurance rate in these areas is $1,209 per year, over $900 less than the city average of $2,142 per year. 

Among the 15 most popular insurance companies in Minneapolis, Auto-Owners Insurance has the cheapest rates in every ZIP code.  

ZIP code

Company

Average yearly cost

55401

Auto-Owners Insurance

$1,217

55402

Auto-Owners Insurance

$1,209

55403

Auto-Owners Insurance

$1,229

55404

Auto-Owners Insurance

$1,222

55405

Auto-Owners Insurance

$1,247

55406

Auto-Owners Insurance

$1,219

55407

Auto-Owners Insurance

$1,223

55408

Auto-Owners Insurance

$1,237

The most affordable areas for homeowners insurance in Minneapolis

With an average home insurance rate of $2,132 per year, the 55450 ZIP code is the most affordable area for home insurance in Minneapolis. Since much of this ZIP code is taken up by the Minneapolis-Saint Paul International Airport, there are only a handful of houses in this area and fewer than a dozen residents.    

ZIP code

Average yearly cost

55450

$2,132

55454

$2,140

55402

$2,140

55415

$2,140

55401

$2,140

The most expensive areas for homeowners insurance in Minneapolis

With an average home insurance rate of $2,159, the 55417 ZIP code (Wenonah/Nokomis) is the most expensive area for home insurance in Minneapolis. Since this area is made up of homes built before 1939, it’s likely that these older homes cost more to insure. 

ZIP code

Average yearly cost

55417

$2,159

55412

$2,145

55405

$2,143

55411

$2,143

55418

$2,143

Shopping for homeowners insurance in Minneapolis

Shopping for homeowners insurance has two parts: deciding on the amount of coverage you need, and then finding it at the most affordable price. To figure out your coverage limits, consider the amount of money you would need to rebuild your home, any assets you need to protect if you are found liable for an injury on your property, and any additional factors that affect your home, such as flooding, detached structures, or a swimming pool. 

In this section, we break down the average annual home insurance rates in Minneapolis 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 Minneapolis.

Minneapolis home insurance costs by coverage amounts

Dwelling coverage pays for repairs or the cost of rebuilding your house after a fire, flood, or another event covered in your policy. When choosing a coverage limit, consider your home’s replacement cost, which is the amount of money it would take to completely rebuild your home. 

In Minneapolis, a policy with $500,000 in dwelling coverage costs over $2,000 more on average than one that has a $100,000 limit. To save money, make sure you have an accurate idea of your home’s replacement cost.   

Dwelling coverage amount

Average yearly cost

$100,000

$1,076

$200,000

$1,606

$300,000

$2,142

$400,000

$2,718

$500,000

$3,332

Liability coverage pays for the legal ramifications if someone is injured on your property. Because the injured party can sue you for everything you’re worth, you want to make sure this coverage is enough to cover your house, cars and other vehicles, and your liquid assets. 

The difference in cost between $100,000 in liability coverage and $500,000 in coverage is only $25, so it’s worth opting for the highest liability coverage limits available.

Liability coverage amount

Average yearly cost

$100,000

$2,127

$200,000

$2,194

$300,000

$2,142

$500,000

$2,152

Minneapolis home insurance costs by deductible amount

Your homeowners insurance deductible is the amount you have to pay out of pocket before your insurance company will pay your claim. If your deductible is $500 and your claim is for $2,000, you have to pay the first $500 before your insurer will pay out the remaining $1,500 of the loss.  

A high deductible generally means lower premiums, but before opting for the highest deductible possible, be sure to consider your home’s risk and how often you’ll need to make a claim. If you don’t have to worry about any recurring hazards or potential losses, then a high deductible plan is a good way to save money. 

As seen in the table below, Minneapolis residents can save around $468 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$2,448

$1,000

$2,142

$2,000

$1,980

Home insurance discounts in Minneapolis

Living in a big city comes with some trade offs, such as a higher crime rate than your suburban neighbors. While this might mean higher premiums, most insurance companies offer discounts if you add a security system or burglar alarm to your home. Some companies will take money off your premium if you have a reliable smoke alarm as well. The safer you make your home, the less likely you are to file a claim. 

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 Minneapolis with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$2,142

Smoke alarm

$2,136

Burglar alarm

$2,060

Home insurance companies in Minneapolis for dog owners

There are certain dog breeds that are considered “dangerous” by insurance companies due to higher cases of bites and attacks. If you own one of these breeds, you could see a higher price tag on your insurance policy. 

With an average rate of $1,229 per year, Auto-Owners Insurance has the cheapest home insurance rates in Minneapolis for a home with a dangerous dog breed, while Allstate’s average yearly premium of $3,215 is the highest.

Company

Average yearly cost

Auto-Owners Insurance

$1,229

Farmers

$1,556

American Family

$2,144

State Farm

$2,308

Allstate

$3,215

Home insurance companies in Minneapolis for poor credit

Insurance companies will use parts of your credit history to determine if you are a high-risk customer. While they don’t look at your entire credit report, insurers will use certain information to see if you can be counted on to pay your bills on time. There is also evidence that people with high credit scores are less likely to file insurance claims that they can afford to pay out of pocket. 

With an average rate of $2,557 per year, American Family has the cheapest home insurance rates in Minneapolis for a homeowner with poor credit, while Auto-Owner Insurance’s average yearly premium of $12,960 is the highest. 

Company

Average yearly cost

American Family

$2,577

Farmers

$3,157

State Farm

$3,979

Allstate

$5,124

Auto-Owners Insurance

$12,960

Home insurance companies in Minneapolis for pool owners

Owning a pool can put you at a higher risk of being sued due to injury, so insurers will often charge higher premiums if you have one on your property. Not all companies raise their rates for this reason, so it’s important to shop around. 

With an average rate of $1,229 per year, Auto-Owners Insurance has the cheapest home insurance rates for Minneapolis homes that have a swimming pool, while Allstate’s average yearly premium of $3,215 is the most expensive.

Company

Average yearly cost

Auto-Owners Insurance

$1,229

Farmers

$1,556

American Family

$2,144

State Farm

$2,308

Allstate

$3,215

How to buy homeowners insurance in Minneapolis

When you purchase homeowners insurance, it’s important to be aware of how much coverage you need and what price you can afford. The below steps can help make the process easier as you shop around for the right policy.

  1. Reach out to a licensed Policygenius agent. The experts at Policygenius are available to answer your questions and compare quotes to make sure you find a policy that’s right for you. 

  2. Ask about the Minnesota FAIR plan. If you’ve been denied insurance because you live in a high-risk area or your house needs a new roof, look into the Minnesota FAIR plan as a temporary coverage option.

  3. Consider purchasing flood insurance. Many floods happen outside of flood zones. Living close to the river could impact your home, no matter where you’re located in the city.

  4. Figure out how much you can afford to pay for your deductible. To keep insurance rates down, opt for the highest deductible you can afford. However, if you anticipate multiple claims through the year, it might save you money to keep your deductible low.

  5. Compare quotes from a Policygenius agent. Once you know what you need from a policy, one of our experts can help you compare quotes to get the best price on homeowners insurance.

  6. Choose your policy, sign it, and pay your first premium. Your Policygenius agent will be able to complete all of the required paperwork to get your started on your new policy. All you have to do is sign the forms and make your first payment. 

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Frequently asked questions

Who offers the best insurance in Minneapolis?

With an average yearly cost of $1,229, Auto-Owners Insurance has the lowest home insurance rate in Minneapolis, but the best policy is the one that provides quality coverage at an affordable rate.

What can I do to lower the cost of my homeowner’s insurance?

Most companies offer discounts for bundling home and auto policies, paying your premium in one payment, and adding safety features to your home. Some also offer additional discounts for not filing claims.

How does the cost of insurance in Minneapolis compare to the rest of the state?

The average annual cost of homeowners insurance in Minneapolis is $2,142, which is 9% higher than the statewide average of $1,966.

Is homeowners insurance mandatory in Minnesota?

While you are not legally obligated to purchase homeowners insurance, having it can save you hundreds of thousands of dollars in case of a catastrophic event. In some cases, your mortgage lender may require it as a stipulation for your loan.

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.