Updated: January 13, 2026
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Auto-Owners offers the cheapest homeowners insurance in Minnesota, with average rates of $1,728 per year.
Auto-Owners, Chubb, North Star, Farmers and American Family cost 1% to 31% less than Minnesota's $2,492 average.
Bundle your home and auto insurance policies to save 10% to 25% on premiums — one of the biggest discounts Minnesota insurers offer.
Auto-Owners is the cheapest home insurance company in Minnesota at $1,728 per year. Chubb ranks second at $1,972 annually and provides coverage to all Minnesota residents. The five most affordable insurers save homeowners between $15 and $763 compared to the state average.
| Auto-Owners Insurance | $144 | $1,728 | -31% |
| Chubb | $164 | $1,972 | -21% |
| North Star Mutual | $181 | $2,168 | -13% |
| Farmers | $193 | $2,316 | -7% |
| American Family | $206 | $2,477 | -1% |
*The rates above are for homeowners ages 41 to 60 with good credit and no claims history. Quotes are for a home built in 2000 insured for $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability coverage with a $1,000 deductible.
According to our cost research, Auto-Owners leads with the lowest rates across six categories: older homes, newer homes, young homeowners, seniors, high-risk fire zones and smaller homes. Farmers offers the best rate only for larger homes at $2,387 annually.
| Older Homes | Auto-Owners Insurance | $1,797 |
| Newer Homes | Auto-Owners Insurance | $1,440 |
| Young Homeowners | Auto-Owners Insurance | $1,721 |
| Senior Homeowners | Auto-Owners Insurance | $1,632 |
| High-Risk Fire Homes | Auto-Owners Insurance | $1,937 |
| Smaller Homes | Auto-Owners Insurance | $1,987 |
| Larger Homes | Farmers | $2,387 |
The cheapest company may not be your best fit. Customer service quality, coverage options and claims handling matter beyond price. Our guide to the best home insurance companies in Minnesota compares insurers across these factors.
Risk factors differ by location, so insurers price policies differently across Minnesota. Auto-Owners offers the lowest rates in Cass Lake and Hopkins, while North Star provides more affordable coverage in Steen.
| Cass Lake | Auto-Owners Insurance | $1,411 |
| Hopkins | Auto-Owners Insurance | $1,900 |
| Minneapolis | Auto-Owners Insurance | $1,848 |
| Rochester | Auto-Owners Insurance | $1,459 |
| Saint Paul | Auto-Owners Insurance | $1,867 |
| Steen | North Star Mutual | $1,491 |
For basic coverage like $100,000 dwelling protection, Chubb offers the lowest premiums at $821 annually. Auto-Owners delivers the most affordable rates for mid-range or high-value home coverage. American Family is the cheapest option for $1 million dwelling coverage.
| Chubb | $68 | $821 |
| Auto-Owners Insurance | $90 | $1,082 |
| American Family | $94 | $1,133 |
| North Star Mutual | $99 | $1,192 |
| Farmers | $114 | $1,368 |
Minnesota homeowners can cut their insurance costs by hundreds of dollars annually through discounts, higher deductibles and smart home improvements.
Combine your home and auto insurance with the same company to save 10% to 25% on both policies. State Farm, Allstate and Progressive offer bundle discounts to Minnesota homeowners.
Raise your deductible to lower your annual premium, though you'll pay more out of pocket when filing a claim. Choose a deductible amount you can afford if you need to file a claim.
Minnesota allows insurers to use credit-based insurance scores when setting rates. Improving your credit score can save you hundreds of dollars annually on your home insurance premium.
Filing multiple claims within three years triggers rate increases. Use homeowners insurance for major losses rather than small repairs you can afford.
Contact your insurer to find all discounts you qualify for beyond bundling. Review your policy annually to add new discounts as your situation changes.
Frequently asked questions about the cheapest home insurance in Minnesota:
Yes, standard homeowners insurance in Minnesota covers tornado damage to your home and belongings. Review your policy for specific exclusions, as Minnesota experiences an average of 45 tornadoes annually.
Flood insurance isn't required statewide, but mortgage lenders require it for homes in FEMA high-risk flood zones. Standard homeowners policies exclude flood damage, so consider purchasing separate flood coverage even if your lender doesn't require it.
Replacement cost coverage pays to rebuild or replace damaged property at current prices. Actual cash value coverage subtracts depreciation from your payout. Most Minnesota lenders require replacement cost coverage.
You can cancel your Minnesota home insurance policy anytime without cancellation fees and receive a prorated refund. Line up new coverage first, as your mortgage lender requires proof of continuous insurance.
Our rate analysis reflects what most Minnesota homeowners need: standard coverage for a typical single-family home built within the past 25 years.
We collected quotes from major insurers using a consistent homeowner profile across Minnesota. This approach shows how each company prices the same coverage by removing variables that make direct comparisons difficult. The base profile represents the most common home insurance scenario in Minnesota.
Standard Coverage Profile:
For specialty scenarios like older homes, high-value properties and rural locations, we adjusted variables from this base profile while keeping other factors constant. This shows how specific characteristics affect your rate compared to the standard homeowner.
These figures are estimates based on statewide averages. Your actual premium depends on your home's location, age, construction type and your claims history. Compare quotes from at least three insurers to find your lowest rate.
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.
