Best homeowners insurance in Minnesota (2024)

We looked at average costs, customer service ratings, and policy options from multiple top insurers to find the best and cheapest home insurance companies in Minnesota.

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By

Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Edited by

Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.
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Reviewed by

Michael Reynolds, CSRIC®, AIF®, CFT-I™Michael Reynolds, CSRIC®, AIF®, CFT-I™Financial AdvisorMichael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

Updated|4 min read

Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.

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Situated in both the northern and central portion of the country, Minnesota is no stranger to extreme weather. Susceptible to harsh temperatures in the winter and frequent tornadoes from spring to fall, it’s no wonder that home insurance rates are higher in Minnesota than the national average. 

Compare home insurance rates in Minnesota

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The average cost of homeowners insurance in Minnesota is $1,829 per year or $152 a month. This is around 4% higher than the national average of $1,754 per year. 

But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Minnesota.  

Compare the best homeowners insurance companies in Minnesota

Of the companies we evaluated, Auto-Owners Insurance’s average annual policy cost of $1,159 is the cheapest, well below the state average of $1,829. At $2,351 per year, State Farm has higher average rates, but it also has a slightly better J.D. Power rating. 

Policygenius analyzed thousands of quotes from the 5 largest Minnesota insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Minnesota residents to find the best homeowners insurance in Minnesota.

Company

Best for...

Average monthly cost

Policygenius rating

Auto-Owners Insurance

Cheap average rates

$97

5.0 out of 5

State Farm

Personalized customer service

$196

4.8 out of 5

American Family

Additional coverage options

$170

4.5 out of 5

Farmers

Discounts & policy perks

$116

4.5 out of 5

Allstate

Short-term rental coverage

$263

4.4 out of 5

Best company for cheap average rates in Minnesota: Auto-Owners Insurance

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2024 Policygenius award winner

Auto-Owners Insurance

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

Offers flood insurance

Why we chose itchevron icon

Auto-Owners Insurance is the best homeowners insurance company in Minnesota thanks to its extensive policy and coverage options, its high marks for financial strength, and its customer experience ratings.

Pros and conschevron icon

Pros

  • Offers a slew of extra coverage add-ons

  • Offers lots of discounts

  • Flood insurance through the NFIP

Cons

  • Not able to get quotes or file claims online

More detailschevron icon

Why we picked it

Auto-Owners Insurance is one of the best home insurance companies in Minnesota, especially if you want to add more protection to a basic policy. Auto-Owners offers endorsements like guaranteed replacement cost coverage, water backup protection, inland flood coverage, and more.

In Minnesota, Auto-Owners' rates are more expensive than average, but the company offers more than a dozen discounts, including many that are easy to qualify for, like signing up for automatic payments and paperless billing.

How much does Auto-Owners home insurance cost in Minnesota?

The average cost of Auto-Owners home insurance in Minnesota is $1,159 per year, which is 37% cheaper than the statewide average.

How to get quotes

To get a homeowners insurance quote, you’ll have to call a local Auto-Owners Insurance agent.

Best company for personalized customer service in Minnesota: State Farm

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2024 Policygenius award winner

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

All 50 states

Why we chose itchevron icon

State Farm is one of the best overall home insurance companies in Minnesota due to its statewide availability, wide range of policy options for homes of all shapes and sizes, high marks for customer service, and its excellent financial stability ratings.

Pros and conschevron icon

Pros

  • High customer satisfaction and financial strength ratings

  • Top-tier coverage add-ons, including extended replacement cost coverage

  • Offers large discounts when you bundle your home and auto insurance

Cons

  • 20% more complaints filed with the NAIC than other companies of its size

  • No discounts for first-time homebuyers

More detailschevron icon

Why we chose State Farm

As one of the largest home insurance providers in Minnesota, State Farm is best known for its easy-to-reach and dependable customer service. And this goes for all steps of the the customer journey — from shopping and setting up your policy to making changes to your coverage to filing a claim.

What makes this possible is State Farm's extensive network of local agents who understand the weather risks and overall coverage needs of their community.

Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.

How do State Farm home insurance rates compare to the Minnesota average?

The average cost of State Farm home insurance in Minnesota is $2,351 per year, which is about 29% more expensive than the average annual premium in Minnesota of $1,829.

How to get a quote

Online through State Farm or by contacting your local State Farm agent.

Best company for additional coverage options in Minnesota: American Family

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2024 Policygenius award winner

American Family

American Family home insurance

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.6

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers extended replacement cost

Offers flood insurance

Bundle home & auto

Why we chose itchevron icon

American Family is one of the best home insurance companies in Minnesota, especially for people who want to add coverage to a basic policy. AmFam also has high customer service ratings and several discounts.

Pros and conschevron icon

Pros

  • Several one-of-its-kind coverage endorsements and policy perks

  • High customer satisfaction and digital shopping satisfaction scores with J.D. Power

  • Offers nearly a dozen discounts

Cons

  • Requires you to work with an agent to purchase a policy

More detailschevron icon

Why we chose American Family

American Family is one of the top home insurance companies in Minnesota. You can customize your American Family policy with up to 15 additional coverage options — including inland flood, equipment breakdown, and service line coverage.

Although more expensive than the Minnesota average, AmFam's many discounts (including paying your premiums all at once, opting for paperless billing, and signing up for automatic payments) can make your premiums even cheaper.

How do American Family home insurance rates compare to the Minnesota average?

The average annual cost of American Family home insurance in Minnesota is $2,044 per year, which is 12% more expensive than the statewide average.

How to get a quote

Online with American Family or by contacting a local agent

Best company for discounts and policy perks in Minnesota: Farmers

award icon

2024 Policygenius award winner

Farmers

Farmers Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers extended replacement cost

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Farmers is one of the best home insurance companies in Wisconsin for those who want to add coverage to their policies. Farmers also has a range of discounts, slightly cheaper-than-average rates, and high claims satisfaction scores.

Pros and conschevron icon

Pros

  • Optional extended or guaranteed replacement cost dwelling coverage

  • Receives few complaints from policyholders and has a high claims satisfaction score

  • Rates are cheaper than average

Cons

  • Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys

More detailschevron icon

Why we chose Farmers

Farmers is one of the best home insurance companies in Minnesota, especially if you want to add coverage to a basic policy. Optional coverages from Farmers include guaranteed or extended replacement cost coverage, water backup protection, and a personal articles floater.

Farmers also earned a high score in J.D. Power’s 2022 claims satisfaction study (though it scored below average on J.D. Power’s overall customer satisfaction and digital experience surveys). Plus, Farmers receives fewer complaints than average, according to the National Association of Insurance Commissioners.

How do Farmers home insurance rates compare to the average in Minnesota?

The average cost of Farmers home insurance in Minnesota is $1,394 per year, which is 24% cheaper than the state's average annual premium.

How to get a quote

Online through Farmers

Best company for short term rental coverage in Minnesota: Allstate

award icon

2024 Policygenius award winner

Allstate

Allstate logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Whether you’re looking for basic or comprehensive home insurance coverage, Allstate is a standout option. Airbnb hosts may find a suitor in Allstate thanks HostAdvantage — its affordable short-term rental coverage that can be easily added to any policy.

Pros and conschevron icon

Pros

  • Offers HostAdvantage — an excellent short-term rental coverage add-on that can be seamlessly added to any policy

  • Extensive list of discounts and policy features to lower your bill and out-of-pocket costs

  • A+ credit rating with A.M. Best

Cons

  • Beginning to pull back coverage in high-risk areas

  • Customer experience scores with J.D. Power are below the segment average

  • Rate are higher than average

More detailschevron icon

Why we chose Allstate

If you rent out your property through a short-term rental service like Airbnb and a guest destroys or steals your property, Allstate’s HostAdvantage will pay up to $10,000 per rental host period to replace or repair your property.

And the best part? This coverage can be seamlessly added onto your policy for just a small additional fee. Only around a third of the nearly 70 home insurance companies we reviewed offer any type of home-sharing coverage, making Allstate a great option for Airbnb hosts who also need home insurance of their own.

How do Allstate home insurance rates compare to the Minnesota average?

The average annual cost of an Allstate home insurance policy in Minnesota is $3,158, or around 73% more expensive than the statewide average of $1,829 per year.

How to get a quote

Online through Policygenius or Allstate, or by contacting a local Allstate agent.

Methodology & why you can trust our rates

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Compare home insurance rates in Minnesota

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How much is homeowners insurance in Minnesota?

The average cost of homeowners insurance in Minnesota is $1,859 per year, or roughly $152 a month, for an insurance policy with $300,000 in dwelling coverage. This is 4% higher than the national average of $1,754 per year.

Home insurance premiums in Minnesota increased 21% from May 2022 to May 2023, according to our latest analysis of internal policyholder data. This is due to a mix of sustained inflation, labor shortages, rising construction costs, and severe natural disasters that have caused insurance companies to increase rates and establish stricter underwriting rules to offset the risks. You can find all of the details in our 2023 Policygenius Home Insurance Pricing Report.

Minnesota homeowners insurance rates by city

Looking at average home insurance costs for the 15 most popular insurers in Minnesota, we found that the cheapest homeowners insurance company in almost every city in the state is Auto-Owners Insurance.

While insurance companies will consider many factors when determining your home insurance rates, your home’s location has perhaps the biggest impact on your final premium. But even if home insurance is expensive where you live, you can often find affordable coverage in Minnesota.

Here’s a look at the average cost of home insurance in the 20 largest cities in Minnesota.

City

Average monthly cost

Average annual cost

Difference from state average (%)

Minneapolis

$168

$2,010

10%

St. Paul

$176

$2,111

15%

St. Paul

$161

$1,936

6%

Rochester

$147

$1,769

-3%

Bloomington

$163

$1,957

7%

Duluth

$144

$1,729

-5%

Brooklyn Park

$163

$1,954

7%

Plymouth

$171

$2,056

12%

Woodbury

$163

$1,959

7%

Lakeville

$150

$1,802

-1%

Blaine

$161

$1,935

6%

Maple Grove

$169

$2,025

11%

St. Cloud

$147

$1,762

-4%

St. Cloud

$145

$1,735

-5%

Eagan

$164

$1,969

8%

Burnsville

$153

$1,833

0%

Coon Rapids

$161

$1,927

5%

Eden Prairie

$169

$2,029

11%

Apple Valley

$163

$1,953

7%

Minnetonka

$171

$2,051

12%

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Minnesota homeowners insurance rates by coverage amount

The table below highlights the average annual premium in Minnesota for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.

Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.

Dwelling coverage limit

Average annual cost

$100,000

$953

$200,000

$1,367

$300,000

$1,829

$400,000

$2,328

$500,000

$2,872

Compare home insurance rates in Minnesota

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Cheapest homeowners insurance companies in Minnesota

Looking at average home insurance costs for the 15 most popular insurers in Minnesota, we found that the cheapest homeowners insurance company in almost every city in the state is Auto-Owners Insurance, with most rates falling between $900 and $1,300. Farmers also has cheap coverage options, with rates around $1,200 in some cities. 

While insurance companies will consider many factors when determining your home insurance rates, your home’s location has perhaps the biggest impact on your final premium. But even if home insurance is expensive where you live, you can often find affordable coverage in Minnesota.

Company

Average annual cost

Auto-Owners Insurance

$1,159

North Star Mutual Insurance

$1,337

Farmers

$1,394

Western National

$1,442

Chubb

$1,671

Westfield Insurance

$1,703

AAA

$1,785

Secura Insurance Companies

$1,910

West Bend Mutual Insurance

$1,988

American Family

$2,044

State Farm

$2,351

Allstate

$3,158

Country Financial

$3,288

Collapse table

Cheapest Minnesota homeowners insurance if you have poor credit

Insurance companies will also look at your credit score when determining your home insurance rates. If you have a good credit score, your insurer will likely view you as more financially responsible and less likely to rely on home insurance to cover the cost of smaller damages or losses. 

However, the opposite is true if you have a low credit score. Fortunately, not all companies weigh this factor as heavily when calculating your rates.

With an average rate of $2,457 per year, American Family has the cheapest home insurance rates in Minnesota for a homeowner with poor credit, while Auto-Owners Insurance’s average yearly premium of $12,247 is the highest. 

Company

Average annual cost

North Star Mutual Insurance

$1,906

Western National

$2,057

Secura Insurance Companies

$2,413

American Family

$2,457

West Bend Mutual Insurance

$2,578

AAA

$2,663

Farmers

$2,864

Westfield Insurance

$2,916

State Farm

$4,052

Chubb

$4,610

Country Financial

$4,860

Allstate

$5,102

Auto-Owners Insurance

$12,247

Collapse table

Cheapest Minnesota homeowners insurance if you have an older home

The age of your home is one of the factors that impacts your insurance rates. Here are the rates for older homes in Minnesota by company.

Company

Average annual cost

Auto-Owners Insurance

$1,160

North Star Mutual Insurance

$1,337

Farmers

$1,342

Western National

$1,442

Chubb

$1,671

Westfield Insurance

$1,703

AAA

$1,821

West Bend Mutual Insurance

$1,849

Secura Insurance Companies

$1,974

American Family

$2,044

State Farm

$2,351

Allstate

$2,701

Country Financial

$3,785

Collapse table

Cheapest Minnesota homeowners insurance if you have a history of claims

Filing multiple claims can impact your homeowners insurance rates. Here are the average rates for homeowners who have filed multiple claims.

Company

Average annual cost

Auto-Owners Insurance

$1,196

North Star Mutual Insurance

$1,337

Western National

$1,442

Westfield Insurance

$1,938

American Family

$2,444

West Bend Mutual Insurance

$2,550

Farmers

$2,567

Secura Insurance Companies

$2,625

State Farm

$2,685

Chubb

$3,149

Allstate

$4,055

AAA

$5,326

Country Financial

$7,576

Collapse table

How to buy homeowners insurance in Minnesota

With so many factors to consider, buying homeowners insurance can seem complicated, but it doesn’t have to be. Rates in Minnesota may be slightly above the national average, but a Policygenius agent can help save you money. Here are some tips.

6 steps to buy homeowners insurance in Minnesota

  1. Reach out to a licensed Policygenius agent. If you have questions about home insurance, our experts have the answers you’re looking for. A Policygenius agent can help you decide on coverage options, compare quotes, and purchase a new policy.

  2. Consider special coverage options. If your house is on a lake that may be susceptible to flooding, look into additional flood insurance to cover unexpected costs. 

  3. Ask about the Minnesota FAIR plan. If there are any environmental reasons standing in your way of purchasing home insurance, look into the Minnesota FAIR plan for last-resort coverage. 

  4. Figure out how much you can afford to pay for your deductible. If you anticipate making multiple claims a year, consider a lower deductible option. 

  5. Compare quotes from a Policygenius agent. Once you have your quotes, a Policygenius agent can help review your coverage options and choose the best company for your home.

  6. Choose your policy, sign it, and pay your first premium. When you work with a Policygenius agent, they will complete the required paperwork so all you have to do is sign on the dotted line and pay your premium. Leave the rest to us!

Compare home insurance rates in Minnesota

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Frequently asked questions

What is the average cost of home insurance in Minneapolis?

The average rate for insurance in Minneapolis is $2,142, which is more than the state average of $1,966. Minneapolis has a higher crime rate than much of the state, which could be a contributing factor to the high insurance costs.

If my poor credit score is affecting my insurance rate, what can I do to improve it?

Paying bills on time and keeping your credit card balance down are two good ways to improve your credit score. By managing your money carefully, you should see an improvement over time.

Is it required to have homeowners insurance in Minnesota?

While you are not legally obligated to purchase homeowners insurance, your mortgage lender may require it as a stipulation for extending you a loan.

How can I lower the cost of homeowners insurance?

Many companies that offer home insurance in Minnesota offer discounts that can lower your premium. Ask your insurance agent what discounts are available to you.

Author

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Editor

Pat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

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