Minnesota's average home insurance premium costs $208 monthly or $2,492 annually. This is $81 less per month than the national average, saving residents $975 yearly. Minnesota ranks 23rd most expensive nationwide for home insurance coverage.
Average Home Insurance Cost in Minnesota
Updated: January 11, 2026
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Key Takeaways: Minnesota Home Insurance Rates
Minnesota homeowners pay about $208 monthly or $2,492 yearly for home insurance, ranking as the twenty-third most affordable state nationally.
Determine your coverage needs, gather multiple quotes and research providers to find the best home insurance in Minnesota for your situation.
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How Much Is Home Insurance in Minnesota?
| Minnesota | $2,492 | $3,467 | -28% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Jan 24, 2026
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What Affects Average Minnesota Home Insurance Costs?
Minnesota home insurance costs vary based on multiple factors. Your location, coverage limits, home's construction materials, insurance company, credit score and past claims all impact your premium. Each of these elements plays a different role in determining what you'll pay for coverage.
Average Minnesota Homeowners Insurance Pricing by Coverage Level
Minnesota homeowners pay anywhere from $1,340 to $8,065 annually based on coverage selection. Entry-level policies with $100,000 dwelling coverage start at $112 monthly. Doubling coverage to $250,000 dwelling increases monthly costs to $208. High-value homes requiring $1 million dwelling coverage pay $672 monthly. Your premium scales with protection levels, making it important to balance adequate coverage against budget constraints.
| $100K Dwelling / $50K Personal Property / $100K Liability | $112 | $1,340 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $208 | $2,492 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $382 | $4,585 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $520 | $6,244 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $672 | $8,065 |
Average Minnesota Home Insurance Cost by City
Minnesota homeowners pay between $2,135 and $2,662 annually depending on location. Rochester offers the most affordable rates, with average annual premiums $527 less than Saint Paul, the state's most expensive city. Urban areas like Minneapolis and Saint Paul see higher costs due to increased property values and claims frequency. Smaller cities such as Cass Lake and Hopkins maintain moderate premiums around the state average.
| Cass Lake | $198 | $2,374 |
| Hopkins | $205 | $2,460 |
| Minneapolis | $216 | $2,593 |
| Rochester | $178 | $2,135 |
| Saint Paul | $222 | $2,662 |
| Steen | $212 | $2,540 |
Average Cost of Minnesota Home Insurance by Company
Choosing the right insurer saves Minnesota homeowners substantial money. For instance, Auto-Owners Insurance charges $1,728 annually compared to Allstate's $3,403, a difference of $1,675 per year. Shopping around can reveal savings that compound over your policy lifetime.
| Auto-Owners Insurance | $144 | $1,728 |
| Chubb | $164 | $1,972 |
| North Star Mutual | $181 | $2,168 |
| Farmers | $193 | $2,316 |
| American Family | $206 | $2,477 |
| State Farm | $224 | $2,682 |
| COUNTRY Financial | $266 | $3,189 |
| Allstate | $284 | $3,403 |
Average Minnesota Home Insurance Cost by Credit Score
Your credit score directly affects your Minnesota home insurance costs. Insurers view higher credit scores as lower risk, leading to cheaper premiums. Annual rates range from $1,512 to $7,125 based on your credit profile.
| Excellent | $126 | $1,512 |
| Good | $208 | $2,492 |
| Below Fair | $311 | $3,732 |
| Poor | $594 | $7,125 |
Minnesota Homeowners Insurance Costs by House Age
Home age affects insurance costs in Minnesota. Homes built in 2020 average $1,967 annually, while homes from 1980 cost around $2,492 per year. Newer properties cost about $525 less to insure than middle-aged homes each year.
| Newer | $164 | $1,967 |
| Older | $204 | $2,446 |
| Middle Age | $208 | $2,492 |
Why Is Home Insurance So Affordable in Minnesota?
Minnesota homeowners enjoy some of the nation's most affordable home insurance rates, paying 28% less than the national average. Several state-specific factors contribute to this favorable pricing environment.
Lower Catastrophic Risk
Minnesota only experiences 1.4 disaster events each year, according to the National Oceanic and Atmospheric Administration. Minnesota's geographic position protects homeowners from these extreme loss events that drive up insurance costs in coastal and western states.
Strong Building Codes
Minnesota enforces rigorous construction standards that reduce claim frequency and severity. Minnesota state building codes require wind resistance, proper insulation for extreme cold and strict electrical standards.
Modern homes built to these specifications experience fewer weather-related losses and mechanical failures. Newer construction represents lower risk for insurers, allowing them to offer more attractive premium rates for compliant properties.
Lower Population Density
Much of Minnesota remains rural or suburban, with only 71 households per square mile, according to the U.S. Census Bureau. This reduces theft and vandalism claims common in densely populated urban areas. Lower crime rates translate directly to fewer property claims and reduced insurance payouts.
Tips to Save on Minnesota Home Insurance
Minnesota home insurance costs continue climbing, making it essential to find the cheapest home insurance in Minnesota available. These proven strategies will help you lower your premiums and protect your budget without sacrificing coverage quality.
- 1Calculate Coverage Needs
Base your dwelling coverage on replacement costs, not your home's market value. Construction prices determine what you'll need to rebuild, which often differs from what you'd receive selling your property. Document your belongings with photos and receipts to establish accurate personal property limits.
Minnesota homeowners should evaluate water backup coverage for basement protection and consider scheduled personal property riders for high-value items like jewelry or collectibles.
- 2Research Rates and Discounts
Use MoneyGeek's free Minnesota calculator to estimate fair pricing for your specific situation before contacting insurers. When requesting quotes, explicitly ask about all available discount programs.
Newer homes, security installations, claim-free records and multiple protective devices each reduce your premium. Homes with storm protection features in high-wind areas often qualify for additional weather-specific savings.
- 3Compare Multiple Providers
Collect quotes from at least three insurers, comparing more than just premium costs. Review customer satisfaction ratings, claims processing speed and financial strength ratings.
- 4Bundle Home and Auto
Combine home and auto insurance with the same provider to reduce rates on both policies. Bundling discounts in Minnesota range from 10% to 25% annually.
Saint Paul residents often find the most competitive bundled savings by comparing major insurers that specialize in multi-policy discounts for urban homeowners.
- 5Lower Your Risk Profile
Install safety features like smoke detectors, security systems or storm shutters to reduce premiums. Maintaining a claim-free record saves $396 to $730 annually compared to filing claims. Improving credit from below fair to good saves 33% on average.
Calculate Minnesota Homeowners Insurance Costs: FAQ
The FAQs below explain what affects your rates and help you understand potential expenses for coverage in the state.
How much will my premium increase after filing a claim in Minnesota?
Your homeowners insurance premium jumps by $397 after one claim and $730 after two claims compared to claim-free customers. Homeowners without any claims in the past five years pay $2,492 annually on average.
One claim pushes your rate to $2,888 per year, while two claims increase your annual cost to $3,222. Keep in mind that filing claims stays on your record for five years, so you'll pay these higher rates throughout that period.
What natural disasters does Minnesota home insurance cover?
Standard insurance covers wind, hail, lightning and fire damage, the most common perils in the state. But standard policies exclude flood and earthquake damage, requiring separate coverage.
Water backup from sewer or drain issues also needs an additional endorsement, which Minnesota homeowners should strongly consider, given basement flooding risks. Review your policy's specific perils section to understand exact coverage.
Does home insurance in Minnesota cover ice dam damage?
Minnesota home insurance covers sudden water damage from ice dams under your dwelling coverage, but with important limitations. Insurers cover damage to your home's interior, walls, ceilings and floors when melting ice infiltrates through the roof. But most policies exclude damage to the roof itself and gutters from ice accumulation.
Some insurers also limit coverage if you failed to maintain adequate attic insulation or ventilation. Check your policy's water damage and maintenance provisions, and consider installing heat cables or improving attic insulation to prevent ice dam formation.
Why does home insurance cost more for older homes in Minnesota?
Home age impacts insurance costs. Older homes cost about 24% more to insure than newer properties. A home built around 1980 averages $2,446 annually, while a newer home from around 2020 costs $1,967 per year. That's a difference of $479. Middle-aged homes from around 2000 fall between these at $2,492 annually.
Older homes carry higher premiums because they face greater risks from aging infrastructure. Outdated electrical wiring, old plumbing systems and worn roofing materials are more likely to fail and trigger insurance claims.
How can I lower my home insurance costs in Minnesota?
Maintaining a claim-free record for five years saves $396 annually compared to having one claim, and $730 yearly versus two claims. Raising your deductible from $500 to $1,000 reduces premiums by $181 annually.
While higher deductibles mean larger out-of-pocket expenses during claims, the yearly savings build up over time. Contact insurers about discounts for bundling policies, security system installations, or newer home features. These reductions can meaningfully lower your annual costs.
How We Analyzed Minnesota Home Insurance Rates
We calculated Minnesota home insurance estimates using real rate data and a consistent methodology that isolates how different factors affect your costs.
Our analysis centers on a standard homeowner profile: $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage, and a $1,000 deductible. The model assumes a home built in 2000 with frame construction and a composition roof, plus no insurance claims filed in the past five years.
This profile mirrors typical Minnesota homeowners and creates reliable comparison points. The $250,000 dwelling amount aligns with median home values across many Minnesota markets. The 2000 construction year represents the most common age range for homes in the state.
We tested the impact of each factor by changing one element while keeping all other elements constant. For example, when studying how home age affects premiums, we compared houses built in 1980, 2000, and 2020 using the same coverage amounts and homeowner characteristics. This approach shows the true cost difference each variable creates.
Your actual premiums will vary depending on your specific home construction, roof condition, location, coverage choices, claims history, credit profile, and insurance company. The rate variations shown here demonstrate how much these individual factors influence your final costs.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Minnesota Guide to the State Building Code. "Minnesota Guide to the State Building Code." Accessed January 5, 2026.
- NOAA. "Minnesota Summary." Accessed January 6, 2026.
- United States Census Bureau. "Quickfacts: Minnesota." Accessed January 5, 2026.