Purchasing a renters insurance policy in Minnesota is a great way to secure your property from theft and damage. MoneyGeek ranked the top companies in the state based on customer service, affordability and financial strength. You can use this data to secure the best coverage for your needs with the lowest monthly premiums in the state.
The Best and Cheapest Renters Insurance in Minnesota for 2021: Rankings, Reviews and Rates
Cheap Renters Insurance Companies in Minnesota
For Minnesota residents, the cost of renters insurance plays a vital role when selecting a policy. Two of the cheapest companies in this state are State Farm and American Family. On average, State Farm policyholders pay $87 per year, while American Family policyholders pay an annual rate of around $90.
The average monthly premiums for each company are based on quotes sourced from varying sets of ZIP codes within Minnesota for a policy with $20,000 personal property coverage, $100,000 liability coverage and a deductible of $500.
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Best Renters Insurance Companies in Minnesota
Cost is not the only factor to consider when looking for the best renters insurance in Minnesota. In case an accident occurs, your insurance company should be able to settle your claims effectively and efficiently.
MoneyGeek used a combination of three factors to rate the top renters insurance companies in Minnesota, including unique pricing data, financial stability ratings from AM Best and customer service ratings from J.D. Power. According to these criteria, State Farm is the best renters insurance provider with a score of 95 out of 100, followed by American Family with 91 points.
State Farm led the top renters insurance companies in Minnesota due to its high financial stability and affordability scores. Its standard renters insurance coverage includes inclement weather and non-weather incidents, such as vandalism and theft. State Farm also offers various customization options that provide specific coverages, like waterbed and earthquake coverage. Renters can easily obtain a quote through the company’s online tool.
Besides standard coverage that includes personal property, personal liability, medical payments and full replacement value for belongings, American Family adds a little over $1 per month for jewelry coverage. Unlike other insurers who provide their quotes via their website, renters can only request American Family’s services by calling one of the company’s representatives, who refers them to an agent for more detailed assistance.
Farmers Insurance offers coverage for high-value items to renters in Minnesota who want extra protection. Policyholders can get coverage for identity shield protection and expensive valuables (such as jewelry and electronics) at an additional cost. Renters can obtain a quote from the company’s website by following a few simple steps.
Largest Renters Insurance Companies in Minnesota
The renters insurance providers with the largest market share in Minnesota include State Farm (25.21%), American Family Insurance Group (14.91%), Farmers Insurance (7.83%), Auto-Owners Group (5.74%) and Allstate (5.54%). In total, these five companies represent over 59% of the state’s renters insurance policies. Purchasing renters insurance from a larger insurer increases the possibility of your claims being settled fairly and efficiently.
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Average Cost of Renters Insurance in Minnesota
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On average, the cost of renters insurance in Minnesota is $101 per year, $59 less than the national average for a policy with $20,000 personal property coverage, $100,000 liability coverage and a deductible of $500.
Renters in Minnesota can save money by taking the time to compare renters insurance policies from various providers. Selecting a policy from the cheapest insurer in the state instead of the costliest provider can save you around $39 per year.
What Factors Impact Renters Insurance Cost in Minnesota
Various factors influence how much you pay for renters insurance, including your location, coverage level and deductible. Having these factors in mind when looking for cheap renters insurance in Minnesota can help you secure the best prices for the coverage you need.
- Location: Where you live can cause your renters insurance cost to increase or decrease. Apartments located in a neighborhood with a history of crime or severe weather have higher renters insurance rates than those in a low-risk area.
- Coverage Amount: The more renters insurance coverage you purchase, the more you will pay in premiums. It is important to determine how much it would cost to replace your property before seeking a renters insurance quote. This ensures you get the appropriate amount of coverage.
- Deductible: A deductible is a fee you pay to your insurer in exchange for paying your claim. A high deductible means that you will pay more out of your pocket if your property gets damaged. Policies with lower deductibles charge higher monthly premiums but cover more of the cost of replacing your items.
- Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): When your property gets damaged, your insurer will reimburse you using either the ACV or RCV method. ACV policies only pay depreciated amounts for used items, while RCV policies compensate you for purchasing a new item of similar quality. As you might expect, RCV policies are more expensive due to their higher claim payouts.
- Credit Score: Minnesota state law allows insurers to use an individual’s credit score in their insurance calculations. In most cases, insurers assume that those with bad credit scores file claims more frequently than individuals with excellent credit scores. Therefore, people with strong credit scores typically pay less for renters insurance than people with poor credit.
Renters Insurance in Minnesota: What You Need to Know
One of the most cost-effective ways of protecting your property in the event of unexpected theft or damage is purchasing renters insurance. In Minnesota, 24% of residents are renters and the average rent per month is $1,016. Renters pay an average monthly premium of $8 for $20,000 personal property damage, $100,000 liability coverage and a deductible of $500. This monthly premium is only 0.83% of the average monthly cost of rent in the state.
What Renters Insurance Typically Covers in Minnesota
When purchasing renters insurance in Minnesota, make sure that you understand what the policy covers and what it doesn’t. The four types of common coverage included in most rental policies are personal property, personal liability, medical payments and additional living expenses.
Renters in Minnesota also typically receive coverage for common natural disasters such as wildfires and hailstorms. Be sure to discuss this with your provider before making your decision.
What Renters Insurance Typically Does Not Cover in Minnesota
Renters insurance companies in Minnesota cover many unexpected incidents that result in property damage. However, they do not protect you from all forms of damage, such as:
- Floods: Renters insurance usually covers water damage due to broken water mains and pipes, but not floods. If you are interested in adding flood insurance to your coverage, you can get it through the National Flood Insurance Program (NFIP).
- Earthquakes: Although earthquakes are natural occurrences, they are not covered by most renters insurance policies in Minnesota. Luckily, they are not common in the state.
- Roommate’s Property: If you have a roommate or guest, your insurance policy does not cover their property unless you name them in your policy.
- Valuables: For expensive items that exceed policy limits, such as computers and jewelry, you will need to purchase additional coverage.
- Structural Damage: Renters insurance does not cover the building’s structure. The property owner is responsible for repairing any form of structural damage.
Like any other insurance policy, ensure that you understand what your renters insurance plan includes before purchasing it. If you are not sure about what it covers, talk to your agent for more clarification.
FAQs About Renters Insurance in Minnesota
Renters Insurance in Minnesota Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from three of the top insurance companies in Minnesota provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Minnesota. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
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