The Homeowners Insurance Companies in Minnesota
The “land of 10,000 lakes” (actually 11,842, but who’s counting?), is home to great natural beauty and gorgeous summer weather. But Minnesota is also the second-northernmost state in the U.S., after Alaska, which means it pays for those dreamy summers with fierce winters. Snowstorms, heavy ice, and surprise cold fronts make for hefty homeowners insurance claims throughout the state — it’s even in the top five states for hail damage.
The high likelihood of weather-related claims means that Minnesota homeowners need to be adequately protected. You’ll want to look for a home insurance policy that’s not only affordable, but covers everything the state can dish out. We’ve taken a close look at Minnesota’s top five insurers to see who offers the best coverage and service for your buck.
How We Found the Best Homeowners Insurance Companies in Minnesota
We evaluated Minnesota’s five largest providers by market share, following the same criteria set down in our nationwide review of the Best Homeowners Insurance. First, we made sure each insurer had “excellent” financial strength ratings from the independent agency A.M. Best. Then we looked at customer satisfaction, factoring in survey scores from Consumer Reports and J.D. Power. Finally, we compared coverage options and customer resources to get a feel for which companies are the best to work with.
The 5 Best Homeowners Insurance Companies in Minnesota
Best Minnesota Homeowners Insurance Companies
State FarmState Farm is one of our favorite nationwide providers, and Minnesota’s most popular choice by far. So, why is State Farm the go-to for Minnesotans? It starts with excellent coverage. The company’s covered perils include wind, storms, hail, frozen pipes, and the weight of ice, snow, or sleet — to name just a few of the most crucial protections for Minnesota homes. State Farm also makes shopping around and choosing a policy easy. The quote process only takes a few minutes, and gives you the option to tinker with coverage and deductible levels to see how these factors affect price.
What’s more, State Farm seems to live up to its claim of being “like a good neighbor.” It consistently ranks well with J.D. Power and Consumer Reports, which means State Farm can be counted on for supportive customer service and fair fileHIclaimclaims handling. State Farm even offers valuable resources such as their 360Value tool, which helps determine the replacement value of your home (in other words: the amount it would cost to rebuild, and thus the value you should be insuring it for). And, should you need to file a claim, State Farm has an A.M. Best financial rating of A++ which guarantees that it will have the capital to pay out.
AllstateAllstate was a close runner-up to State Farm in our assessment. Like State Farm, its baseline policies cover many of the risks common to Minnesota homes — things like wind, hail, and damage from frozen plumbing. Allstate also offers generous discounts. Policyholders can save by bundling home and car insurance, staying claims-free, installing safety devices, and more. In our quote comparisons, these discount opportunities keep prices fairly low.
The other thing that Allstate does really well? It has awesome online resources. First-time buyers especially will appreciate the company’s learning center, which covers insurance basics and frequently asked questions. We also love Allstate’s common and costly claims tool, which will help you choose the best coverage levels for your home based on commonly filed insurance claims in the area.
That said, Allstate falls just a bit behind State Farm when it comes to customer satisfaction. It ranks below Sate Farm for J.D. Power and Consumer Reports — you can expect respectable customer service, but the claims experience won’t be as seamless as it could be. It does earn an “A+” financial score, though, so customers can rest assured that their policy is in good hands.
Auto-Owners InsuranceAuto-Owners Insurance ranks high for reliability with an impressive A++ for financial strength. There are a few conflicting opinions about its customer satisfaction — J.D. Power ranks it below competitors like State Farm and Allstate while Consumer Reports ranks it above. That said, both reports agree that you can expect quality face-to-face service from its agents and if that’s important to you, then Auto-Owners should be your first stop for insurance.
Auto-Owners is also likely to be affordable. The company offers plenty of discounts, including some unique ones that we didn’t see elsewhere (like savings for paying off your mortgage, having a backup generator, or installing an emergency water shut-off system).
It’s worth mentioning that Auto-Owners’ main site doesn’t offer quotes online — you’ll have to take the time and reach out to an agent to see how its pricing and coverage compare. On the bright side, when we reached out we were patched through to an agent right away, and they answered all of our questions and quickly followed up with a quote.
FarmersFarmers is middle-of-the-pack for ratings. It has an “A” for financial stability, and an average three out of five points from J.D. Powers’ customer satisfaction survey. That said, the company stood out to us for a couple of reasons.
First, we like that Farmers offers three different home insurance policies. Each tier brings a different level of coverage and varying deductible, and Farmers lets you explore all three in its quote process. This helps customers understand how much protection they’re getting for their dollar at each level — that way, they can choose a policy they’re comfortable with.
We’re also impressed with Farmers’ list of discounts. Along with the standard items (like bundling policies, maintaining a smoke-free home, and staying claims-free), Farmers has some unique savings opportunities. For example, homeowners get a price cut for having a LEED-certified home or other green improvements. It even offer savings for educators, police and law enforcement personnel, and other professional groups.
American FamilyAmerican Family is another solid choice for Minnesota homeowners. Its policies cover all the basics (from fire to windstorms, hail, and theft) with a few optional endorsements, like sump pump backup, that may be important for certain homes.
AmFam also has some helpful resources that make buying and managing your policy simple. Start with its Insurance 101 page, which covers everything from choosing a policy to filing a claim. We also recommend its home insurance calculator. This tool looks at your home and assets to help you determine which types of coverage you’ll need on your policy.
That said, American Family ranks the lowest for customer satisfaction out of all our contenders for J.D. Power. But even so, customer can still expect respectable service, well-rounded coverage, and “A”-rated financials — plus, it’s the second largest provider in Minnesota by market share, meaning customers are sticking around year after year. It’s worth calling an agent to see whether AmFam’s pricing is competitive for you.
Guide to Minnesota Homeowners Insurance
Consider upping your hail coverage
Hail doesn’t get the same press as earthquakes or tornadoes, but Minnesotans know that it can be nearly as dangerous. For example, one St. Paul hailstorm in 2017 clocked hailstones up to 1.75 inches in diameter. That’s big enough to break windows, damage trees, and displace roof shingles. In other words: costly home insurance claims.
Thankfully, most Minnesota homeowners insurance policies cover hail damage — but you’ll want to speak to your agent about what exactly that coverage entails. In some cases, it may make sense to add an extra endorsement that boosts protection. State Farm, for example, offers an endorsement that raises payout limits in the event of extensive roof damage. This would be worth considering in regions where hail damage is especially serious.
Make sure you round out your policy
Whether you’re shopping around online or working with an agent, it helps to come to the table prepared. You’ll want to think about your home’s unique needs and the most crucial coverage options ahead of time — that way you won’t miss anything, and you won’t risk being oversold either.
We recommend starting with the Minnesota Commerce Department’s homeowners insurance guide. It offers a wealth of information about property value and risk assessment, as well as a list of commonly missed coverage options (like sump pumps, sheds, trampolines, and pools).
It’s also a good idea to look at Allstate’s common and costly claims tool, even if you don’t choose it as your provider. This resource will find the most commonly filed insurance claims in your ZIP code so you can be sure to protect against them.
Don’t forget about location
It’s a little counterintuitive, but urban homes are generally cheaper to insure than rural ones. When we requested sample quotes from Allstate and State Farm, prices for hub cities like Minneapolis and Rochester were up to $1,000 cheaper per year than homes in small towns. One of the biggest reasons: The closer you are to a city, the more likely it is that you’re near a fire station (or even a fire hydrant), which can limit damages in the event of an emergency.
So, what does that mean for you as a homeowner? Although you can tinker with price to some extent by selecting different endorsements and coverage levels, where you live will always be the biggest factor in determining cost. The best way to find an affordable policy is by comparing quotes from different providers to see who can offer the cheapest premiums in your area.
Minnesota Homeowners Insurance FAQ
How much is homeowners insurance in Minnesota?
Minnesota’s annual premiums for homeowners insurance are on the higher side — on average $1,340 per year for an HO-3 policy, compared to the nationwide average of $1,173. Costs are higher here because risk is higher — insurance companies are likely to have to pay out on weather-related claims, from flooding to winter storms and hail. That said, how much you pay can vary a lot depending on your location, home value, and assets. We recommend comparing quotes from multiple companies to see who can offer the best deal on the coverage you need.
How can I calculate the cost of homeowners insurance?
Not sure what you need on your homeowners policy? Using a home insurance calculator is an easy way to find out what types and levels of coverage are right for your home. We suggest starting with this coverage calculator from Liberty Mutual — it asks a few simple questions, then recommends baseline coverage to get you started.
To really customize your policy, try putting your ZIP code into Allstate’s common and costly claims tool. This resource turns up the most commonly filed home insurance claims in your area, so you know where it might be a good idea to bump up protection.
Is there AAA homeowners insurance in Minnesota?
Yes. Minnesota AAA Members have the option to purchase homeowners insurance through the Auto Club Insurance Association. They may be able to save money on both home and car insurance by bundling the two policies through this company.