If you're a homeowner in Minnesota (or thinking about becoming one) you’ve probably asked yourself: What’s the average cost of homeowners' insurance in Minnesota? It’s a smart question. After all, insurance is more than just a line item in your budget; it's a financial safety net for everything from storm damage to liability claims.
At First State Insurance, we help families across Minnesota and Dakota understand what coverage they need and what it should really cost. In this article, we’ll break down current average rates, explore what drives costs up or down, and explain how you can find coverage that fits both your needs and your budget.
What Is the Average Cost of Homeowners’ Insurance in Minnesota?
According to 2024 data from the National Association of Insurance Commissioners (NAIC), the average cost of homeowners' insurance in Minnesota is approximately $1,700 per year, or about $142 per month for a home with $300,000 in dwelling coverage.
That’s slightly above the national average, which sits at around $1,428 per year. The main reason for the higher price tag? Minnesota’s weather. From blizzards to hailstorms, property risks are frequent and often severe.
On the other hand, if you're comparing quotes in South Dakota, you’ll find slightly lower numbers. In this state, the average annual premium there is about $1,420, largely due to fewer weather-related claims and lower rebuilding costs in rural areas.
Why Are Homeowners' Insurance Rates Higher in Minnesota?
Several factors influence why the average cost of homeowners' insurance in Minnesota tends to run high:
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Severe Weather Events: Hailstorms, heavy snowfall, and spring flooding are all common across the state. As a result, insurers adjust premiums to reflect the frequency and cost of weather-related claims.
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Rising Rebuilding Costs: Like much of the Midwest, Minnesota has seen a jump in construction material and labor costs. Because of this, if your policy includes replacement cost coverage, it may be more expensive today than it was five years ago.
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Higher Property Values in Growing Cities: In places like Sioux Falls, SD, where the housing market is hot and construction is booming, insurers consider the increased replacement value of homes when calculating premiums.
What Affects Your Premium?
While statewide averages offer a helpful starting point, your personal cost may vary based on:
1. Your Home’s Location
Homes in high-risk areas, such as those near rivers, flood plains, or wildfire zones, often come with higher insurance rates. In Worthington, this might mean higher premiums for rural properties or aging homes with limited fire department access. In contrast, newer subdivisions in Sioux Falls may qualify for lower rates due to improved building codes and local fire protection infrastructure.
2. Age and Condition of the Home
Older homes tend to cost more to insure due to outdated plumbing, electrical systems, or roofing. If you're buying a fixer-upper in Minnesota, expect a higher quote unless major upgrades have been made.
3. Type of Coverage
Are you opting for actual cash value (ACV) or replacement cost coverage? Usually, the replacement cost is more comprehensive, but also more expensive.
4. Deductible Amount
Raising your deductible can reduce your monthly premium, but it also increases your out-of-pocket cost in the event of a claim. Therefore, important to strike the right balance.
5. Bundled Insurance
Combining your home and auto insurance with First State Insurance could earn you significant savings, especially if you're insuring multiple vehicles or have a spotless driving record.
How Does Minnesota Compare to Other States?
Minnesota sits roughly in the middle-high tier for home insurance costs nationally. According to the Insurance Information Institute, here’s how a few states stack up:
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Florida: $4,000+ per year (due to hurricanes and flood risk)
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Texas: $3,000 per year (hail and tornadoes)
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Minnesota: ~$1,700 per year
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South Dakota: ~$1,420 per year
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Wisconsin: ~$1,200 per year
While our region isn’t the most expensive, it’s certainly not the cheapest, which makes shopping smart even more important.
Tips to Lower Your Homeowners’ Insurance Premium
The good news? You can take steps to reduce your homeowners’ insurance cost in Minnesota or South Dakota. Here’s how:
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Improve your home security with deadbolts, smart cameras, or alarm systems
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Install storm-resistant roofing or siding materials
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Raise your deductible (if you can cover a higher out-of-pocket cost)
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Bundle multiple policies (e.g., auto, home, umbrella) with the same provider
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Ask for available discounts—for being claim-free, newly married, a senior, or even a teacher.
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Even a few small upgrades could knock hundreds off your annual bill.
Should You Shop Based on Price Alone?
It’s tempting to chase the cheapest homeowners' insurance quote. However, some low-cost policies may leave out essential protections, such as:
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Sewer and water backup
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Roof replacement at full cost
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High-value item endorsements (for jewelry, art, etc.)
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Liability protection for guest injuries
As the Minnesota Department of Commerce advises, always compare not just premiums, but coverage levels, exclusions, and deductibles. A few extra dollars per month can make a huge difference when disaster strikes.
Personalized Coverage Is Key, That’s Where We Come In
At First State Insurance, we believe your home insurance should reflect your needs,not just a statewide average. Whether you're buying a new home in a Sioux Falls suburb or updating an older property in Worthington, we’ll help you:
Our agents are local, experienced, and easy to reach, whether you want to call, text, or email.
Final Thoughts: Be Informed, Then Be Protected
So, what is the average cost of homeowners’ insurance in Minnesota? Around $1,700 per year, but your actual rate depends on dozens of factors. From weather trends to building materials, the right policy isn’t just about cost, it’s about confidence.
Contact our team at First State Insurance to get a personalized quote, review your current policy, or just ask a few questions. We’re here to help you protect what matters most.