Home Insurance in Minnesota

Your home may be one of your most prized possessions. Is it protected? If you don’t have comprehensive home insurance, you might be leaving one of your biggest assets uncovered. That’s where Obrella comes in. We ensure that selecting and purchasing a Minnesota home insurance policy is as painless as possible. Licensed experts make it easy to weigh your options so you can choose the policy that’s best for you. They can even help you bind your policy—all over the phone.

What are the average Minnesota homeowners insurance rates?

At $1,140 per year, Minnesota homeowners pay about $100 more per year than homeowners across the nation. That ranks Minnesota as having the 12th highest premiums in the country.

• Median Home Value: 196,200
• Household Income: 67,244
• Percent of Income on Home Ownership: 25.60%

Minnesota’s median house value is slightly more than what it is across the nation, and so are household incomes. At $187,900, the typical house in Minnesota is $11,200 greater than the national median of$176,700, and at $60,702, household income is $8,452 more. All in all, Minnesota locals spend about25.6% of their income on housing related expenses, which is 6% less than the national rate of 31.6%. This could be one reason why only two states have higher rates of owner occupied housing than Minnesota’s71.6%.

To find out if your home insurance policy is adequately protecting your Minnesota house, contact an insurance expert. Ask them to review your coverage and compare your policy to others. Doing so might lower your insurance premium while enhancing your home’s protection.

How are Minnesota home insurance premiums determined?

Several factors are considered when insurance providers decide on the cost of homeowners insurance policy. When assigning premiums, insurance companies look at things like building costs in the area, the size of the home, and the year it was built, as well as crime rates and other statistics for the area. Even your credit score will be evaluated.

In setting insurance premiums, providers also survey the chance that your home might be damaged by floods, tornadoes, earthquakes, or other environmental factors. The more common these environmental anomalies are in your area, the riskier it is for the insurance company to insure your home. To compensate for this extra risk, your insurance provider is likely to raise your premium if you live in an area that experiences a higher-than-average number of natural disasters.

If your home includes an add-on, such as a hot tub or guest home, these might also affect insurance premiums. If you’re looking for ways to lower your homeowners insurance premiums, you can install devices that help to protect your home, such as motion-sensor lights, surveillance cameras, or a security system.

About homeowners insurance in Minnesota

Many home insurance companies in Minnesota give you a range of coverage options to choose from; here are a few examples:

• HO-1: Limited Coverage
  • An HO-1 policy provides protection against any of the first 10 classified disasters: fire or lighting, windstorms or hail, explosions, riots, damage caused by aircraft, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this basic policy is no longer available in most states.
• HO-2: Basic Policy
  • HO-2 policies are designed to insure your home if it’s damaged by any of the 16 classified disasters.
• HO-3: Standard, most popular
  • Aside from minor exclusions, this basic policy provides comprehensive coverage for your home.
• HO-8: Older Home
  • This policy guards against declining home values by paying back homeowners for damage on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.

What will standard Minnesota homeowners insurance cover?

If you don’t know the details of your insurance coverage, you could be more at risk than you think. Home insurance coverage will typically only reimburse you if the damage to your home or the personal injury of another on your property occurs as part of a situation specifically outlined in your policy. So, if an earthquake caused part of your home to collapse and you didn’t have earthquake coverage listed on your policy, you would have to pay for repairs on your own. To learn more about what’s covered by your policy, check out some common home insurance definitions below:

• Coverage A – Dwelling
  • Protects against damage to the home and attached structures. This includes damage to the home’s plumbing, wiring, and permanent air-conditioning and heating systems.
• Coverage B – Other Structures
  • Any structures that are not attached to the home, such as tool sheds, free-standing garages, fences, or guest homes, are covered under Other Structures.
• Coverage C – Personal Property
  • If the homeowner loses personal belongings due to theft or other damage, Personal Property coverage will compensate the homeowner for the value of the item—be it clothing, furniture, electronics, or jewelry. Personal Property coverage even covers damage to or loss of personal belongings if the theft, loss, or damage occurs outside the home—meaning any items kept in a storage unit are covered as well.
• Coverage D – Loss of Use
  • If home repairs prevent you from inhabiting your house, Loss of Use coverage will cover your living expenses for the duration of the repair process.
• Coverage E – Personal Liability
  • Personal Liability coverage provides financial protection in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
• Coverage F – Medical Payments to Others
  • Covers medical costs for anyone hurt on a homeowner’s property or by the homeowner’s pet.

What are some of Minnesota insurance resources?

Minnesota Department of Insurance:From home insurance basics to what to do after a storm, the Minnesota Department of Insurance provides homeowners like you with a wealth of information. They even offer information to help you ensure your house is adequately protected by your homeowners insurance policy. You can contact them at: