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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.

Personal Property Coverage:

$20,000

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Company
Amountper year
1. State Farm
In 2021, State Farm ranked #1 for the cheapest renters insurance with $20,000 in personal property coverage in Minnesota.
$87
2. American Family
In 2021, American Family ranked #2 for the cheapest renters insurance with $20,000 in personal property coverage in Minnesota.
$90
3. Farmers
In 2021, Farmers ranked #3 for the cheapest renters insurance with $20,000 in personal property coverage in Minnesota.
$126
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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.


1

State FarmScore: 95

5/5

Affordability

4.1/5

User Satisfaction

5/5

Financial Stability


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.

2

American FamilyScore: 91

4.8/5

Affordability

4.2/5

User Satisfaction

4/5

Financial Stability


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.

3

FarmersScore: 71

3/5

Affordability

4.6/5

User Satisfaction

4/5

Financial Stability


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.

Company
Market Share
1. State Farm
In 2021, State Farm ranked #1 in Minnesota for renters insurance market share.
25.2%
2. American Family
In 2021, American Family ranked #2 in Minnesota for renters insurance market share.
14.9%
3. Farmers
In 2021, Farmers ranked #3 in Minnesota for renters insurance market share.
7.8%
4. Auto-Owners Insurance Co
In 2021, Auto-Owners Insurance Co ranked #4 in Minnesota for renters insurance market share.
5.7%
5. Allstate
In 2021, Allstate ranked #5 in Minnesota for renters insurance market share.
5.5%

Average Cost of Renters Insurance in Minnesota

$0
$0

renters insurance is 0.0% more than the average.

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.
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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


Is renters insurance required in Minnesota?This is an icon

No law requires you to have renters insurance in Minnesota. However, some landlords may ask for proof of renters insurance as part of a lease agreement.

Do you need renters insurance in Minnesota? This is an icon

Although you do not need renters insurance in Minnesota, industry experts still strongly recommend it as an affordable way to protect your assets.

Can your landlord in Minnesota require renters insurance?This is an icon

Yes, some landlords may ask you to carry renters insurance as part of the lease agreement.

How much is renters insurance in Minnesota? This is an icon

The average cost of renters insurance in Minnesota is $101 per year for $20,000 of personal property coverage and $100,000 of liability coverage.

Who has the cheapest renters insurance in Minnesota? This is an icon

MoneyGeek’s data shows that State Farm offers the cheapest insurance in Minnesota at $87 per year on average.

Insurance Rates

Compare Renters Insurance Rates

Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.

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.

About the Authors

The MoneyGeek editorial team has decades of combined experience in writing and publishing information about how people should manage money and credit. Our editors have worked with numerous publications including The Washington Post, The Daily Business Review, HealthDay, and Time, Inc., and have won numerous journalism awards. Our talented team of contributing writers include mortgage experts, veteran financial reporters, and award-winning journalists. Learn more about the MoneyGeek team.