The 5 Best North Dakota Homeowners Insurance Companies
North Dakota’s average annual premiums for homeowners insurance are right in line with the national average — $1,136 per year for an HO-3 policy, compared to $1,132 nationwide. That said, how much you’ll pay can vary a lot depending on your home’s size, your assets, and your address. Use our tool to find your best rates:
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Weather in North Dakota is extreme. The state actually boasts one of the greatest variations in high and low temperatures in the U.S. and is no stranger to tornadoes, blizzards, and floods. Because the Upper Midwest has some of the most unpredictable weather in the country, it’s important to buy comprehensive homeowners insurance that will cover all of Mother Nature’s unexpected and often violent visits.
The average homeowners insurance premium in North Dakota is $1,136, which is very close to the national average of $1,132. Of course, rates can vary based on your home value, your address, and other factors, so shopping around is essential to get the most for your money. The quote tool below can help to compare rates.
How We Found the Best Homeowners Insurance in North Dakota
To find the best homeowners insurance in North Dakota, we have evaluated the five largest homeowners insurance providers in the state based on market share. Once we found them, We followed the same process used in our review of nationwide providers. First, we tested the quote process with each company. Then, we assessed coverage options and discounts, as well as website navigation, customer service, and how helpful the educational materials on each website is to consumers. On top of all that, we looked into each provider’s financial stability and customer satisfaction ratings when available (only the nationwide providers are ranked by J.D. Power and Consumer Reports).
North Dakota Homeowners Insurance Reviews
State Farm sits at the top of our list primarily thanks to its stellar customer satisfaction. In Consumer Report’s survey, State Farm beat out American Family by three points, with consumers particularly happy about the payout amount from State Farm compared to the competition. In J.D. Power’s claims satisfaction ratings, State Farm again outdid American Family, the only other company on our list to be ranked.
State Farm is also the best option in our lineup for buying insurance online. It’s the only company we considered that provides an online quote tool where the buyer can input specific needs and see an immediate price. The quote is more limited than some other nationwide providers, as you must contact an agent to adjust the generated quote beyond the most basic changes, but the availability of this feature does make State Farm stand out from the group.
The website also offers helpful articles to educate buyers in its learning center, and the quote process has a helpful tool that allows homeowners to estimate the cost of replacing their home in the event of a total loss.
American Family Insurance comes in as a close second behind State Farm as a good nationwide provider choice in North Dakota. While it’s ranked behind State Farm in claims satisfaction, American Family sits slightly above State Farm in J.D. Power’s homeowners insurance ratings. It also offered more discounts than any of the other companies we looked into.
It’s also the only contender on our list with a home inventory app, and they too have an informative website featuring articles on a plethora of topics pertinent to homeownership. The online quote tool is limited, as you can’t see your rate until an agent contacts you, but it does at least offer the option of inputting information electronically so that an agent doesn’t have to ask for everything over the phone or in person. The agent who contacted us after our initial quote was prompt and offered the option of continuing the process either over the phone or through email.
Of the smaller companies on our list, Nodak Mutual offers the best online education for prospective buyers, although the information was somewhat limited compared to what bigger nationwide companies offer. There is no online quote tool, no online chat, and everything must be done through an agent. Luckily, the agents we spoke with were very friendly and knowledgeable.
Nodak offers a wide variety of unique endorsements that can be added to a basic policy, many of which are tailored for the often harsh weather conditions common in the area. Anyone who has experienced a long North Dakotan winter will appreciate the additional coverage for freezing or the weight of ice and snow. Nodak offers many of the basic discounts other insurers provide like multi-policy, as well as more specialized discounts for new roofs and for policyholders over the age of 50.
Like American Family, Farmers Union will cover 120 percent of your home’s value in the case that you need to rebuild it. It also offered us the lowest premium of the group, but that came without several of the endorsements that other insurers included in a standard policy, like mold cleanup. As always, make sure the lowest price covers everything you need.
Agents we spoke with were very knowledgeable and kind. Farmers Union offers the basic multi-policy and claims free discounts for policyholders, but were somewhat limited beyond that, with the fewest discounts in our lineup of providers.
In terms of online material, its website was the least helpful of the group. It offers very little in the way of consumer education and features no online tools for quotes or home inventory. We also found the website to be a little confusing as the number listed prominently at the top is for the corporate office, not for those seeking a policy. That said, if you are willing to work exclusively with an agent, Farmers Union is worth looking into — just don’t count on much online help.
North Star Mutual
While many North Dakotans use North Star Mutual, we found the quote process to be the least desirable of the group. North Star Mutual does not have its own offices or agents devoted solely to their product, so you must go through an independent agent to receive a quote or policy.
While those agents we spoke with were knowledgeable and competent, they are juggling more information from multiple companies which could potentially cause problems. This system adds a level of complexity that the other options on our list don’t have. That said, North Star Mutual does offer a wide variety of customizable endorsements and quite a few discounts, including new or upgraded home, burglar alarm, and senior discounts. All in all, though, you’re probably going to get a cheaper rate elsewhere.
Did You Know?
The Most Common Claims in North Dakota
When looking at the many choices for additional endorsements, many homeowners feel like they’re playing Russian roulette. What are the chances that your sewer will backup? Or that a windstorm will rip off half your roof? To better understand what most impacts North Dakotans, we used Allstate’s Common & Costly Claims tool, which we highly recommend no matter which provider you choose. We plugged in zip codes from the five most populous cities.
|Grand Forks||Water Damage||Theft/Burglary||Wind|
|West Fargo||Wind||Water Damage||Physical Damage|
Various zip codes within the same city listed very similar claims to those above. Wind, water damage, and hail top the list for most common claims. The weather in the Upper Midwest can be damaging. This should come as no surprise to North Dakotans, but it is a reminder to pay special attention to storm and water damage coverage when comparing policies.
Flood insurance is important.
Between 2005 and 2015, North Dakota ranked third in the nation for FEMA disaster assistance spending per capita thanks to a series of major storms and floods. Luckily, there is only a small chance that a flood as catastrophic as the 2011 disaster in Minot will happen again in the near future. That doesn’t mean that damage from smaller storms isn’t continuing on a regular basis.
Most homeowners insurance policies won’t cover flood damage. Homeowners who live in flood prone areas are required to purchase insurance from the probably won’t go up if you do experience a flood, as rates did not increase for residences of Minot after the 2011 flood. You can also mitigate your home’s damage and possibly lower your flood insurance premium by following FEMA’s recommendations for reducing flood risk. We recommend looking into these measures, as flood diversion infrastructure in North Dakota has hit bureaucratic snags and can take years to build even if everything goes as planned.
The Bottom Line
The weather in North Dakota can leave your house battered. Finding the right home insurance can bring peace of mind and help you keep your sanity when you have to file a claim. We recommend State Farm as the best overall deal for North Dakotans. It offers the best experience online and the highest rated customer satisfaction. Of course, each home and situation is different, and you should always compare rates and policies. Use our tool below to get started.
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