What Most People Get Wrong About This
The usual line: look up the "average cost of home insurance in Minnesota," and that's roughly what you should be paying. If your bill is higher, you're overpaying.
What's actually true: there isn't one average. There are several, and they measure different things. The regulator figure, from the National Association of Insurance Commissioners, is what Minnesota HO-3 policyholders actually paid on average in 2022: $1,774 a year. Comparison websites publish higher numbers because they price one sample house at today's rates. Neither is your price, and two houses on the same Eagan cul-de-sac can land far apart.
What to do instead: use the averages as a weather report, not a price tag. Then compare quotes on your house at identical limits and deductibles. That's the only comparison that tells you anything.
Your renewal is bigger than last year's, and every website quotes a different "average." Here's the straight version: the most neutral figure that exists, the official numbers around it, why the averages disagree, and what sets the price on your own policy. Our Minnesota homeowners insurance guide covers what a policy includes; this article is about what it costs.
- MN avg. HO-3 premium
- $1,774NAIC via III, 2022 data · III rank 11
- US avg. HO-3 premium
- $1,569NAIC via III, 2022 data
- MN premiums, 2023
- +15%Minneapolis Fed, Aug 2024
- MN homeowners premium
- $4 billionWritten in 2024 · MN Commerce
What is the average cost of homeowners insurance in Minnesota?
Short answerThe NAIC's 2022 data put Minnesota's average HO-3 homeowners premium at $1,774 a year, about 13% above the $1,569 U.S. average and 11th highest in III's state ranking, and premiums have kept rising since.
The National Association of Insurance Commissioners, the organization of state insurance regulators, collects the premiums insurers actually wrote and divides them by the homes insured. Its 2022 figures, as published by the Insurance Information Institute, show an average HO-3 premium of $1,774 in Minnesota against $1,569 for the U.S. HO-3 is the most common homeowners form. The state ranking (Minnesota 11th) is III's; the NAIC itself doesn't rank states.
Why 2022 in 2026? NAIC data runs years behind. The NAIC released its report on 2023 data in July 2026, but we couldn't verify its Minnesota premium row before publishing, and we don't print numbers we haven't checked. Here are the official figures that frame Minnesota's cost:
| Figure | What it is | Source and data year |
|---|---|---|
| $1,774 | Average premium per insured house-year, Minnesota HO-3 policies | NAIC via III, 2022 data |
| $1,569 | The same measure for the whole U.S. | NAIC via III, 2022 data |
| +10.5% / +11.26% | National one-year rise in average premium: dwelling fire and owner-occupied homeowners policies combined, versus HO-3 alone | NAIC, 2021 to 2022 |
| +39% / +15% | Rise in Minnesota's average homeowners premium over seven years, and in 2023 alone | Minneapolis Fed, August 2024 |
| $4 billion | Total homeowners premium written in Minnesota, the state's second-largest property and casualty line | MN Commerce, 2024 data |
The honest summary: Minnesota homeowners paid somewhat more than the national average in 2022, and prices climbed quickly after that. Anyone quoting a "current average" to the dollar is pricing a sample home or extrapolating. The NAIC itself cautions that "average premium is an imperfect measure of the relative 'price' of insurance."
Why do Minnesota home insurance cost figures disagree so much?
Short answerBecause each one measures something different: a different year, policy form, home value, deductible and method, so a regulator's average of every policy and a website's quote for one sample house can sit thousands apart.
Comparison and lead-generation sites often publish higher Minnesota numbers than the NAIC. We don't repeat them here. They aren't fake; they answer a different question. Here's what pulls the numbers apart:
- The sample home. A quote-based estimate prices one hypothetical house. The NAIC average blends every insured HO-3 home in the state, from a 1950s rambler to a new Lakeville build.
- The coverage amount. Premium tracks the dwelling limit, so a $400,000 sample home produces a bigger "average" than a $300,000 one. Some sites publish a separate statewide average for each dwelling limit, so the figure you see depends on which one gets repeated.
- The deductible. Sample quotes usually assume a single deductible, often $1,000. Real policies vary, and some add a separate wind and hail deductible.
- The year. NAIC data is final but old; fresh quotes are current but hypothetical. In a market the Minneapolis Fed says rose 15% in 2023 alone, the gap matters.
- The policy form. The NAIC figure most people quote is HO-3 only. In the NAIC's 2023 data, HO-3 policies made up about 54% of Minnesota's homeowners, renters, condo and dwelling-fire house-years. HO-5, HO-6 and HO-4 policies are counted separately, so an "all forms" average differs.
- Written premium, not quotes. The NAIC average includes long-time customers renewed at older rates, which can pull it below what a new shopper is quoted today.
How fast have Minnesota homeowners premiums been rising?
Short answerQuickly: the Minneapolis Fed reported a 39% increase over seven years, including 15% in 2023, and Commerce data shows storm-heavy years left insurers paying out far more than they collected.
The Federal Reserve Bank of Minneapolis reported in August 2024 that Minnesota's average homeowners premium had risen 39% over the previous seven years and 15% in 2023 alone. Its headline made the other point: coverage was shrinking at the same time, through higher deductibles and roof settlements that subtract depreciation.
That 2022 number lines up with the weather. Commerce reported in April 2024 that 2022 was Minnesota's costliest storm year, with $6.3 billion in property damage, and that the August 11, 2023 hailstorm caused more than $1 billion on its own. The full story, and which parts you can control, is in our companion piece on why Minnesota home insurance rates keep rising. The takeaway here: an average from 2022 likely understates today's prices.
Which features of your home move the premium most?
Short answerRebuild cost sets the base, then the roof's age and material, the age of the home's systems, and its fire protection and location push the price up or down from there.
Averages blend everyone. Your quote starts from your house, and these factors do the most work, roughly in the order we'd check them.
Dwelling limit and rebuild cost
The dwelling limit, Coverage A, is the biggest single input, and on many policies other limits, like detached structures and belongings, are set as a percentage of it. It should match what it would cost to rebuild the house at today's labor and material prices, not what it would sell for. The NAIC's consumer guide says "it is important to insure your home for at least 80 percent of its replacement value." Under-insuring lowers the premium and raises the risk that a big claim doesn't rebuild the house. We'd rather quote you a correct dwelling limit than a flattering premium.
Roof age and material
In Minnesota, the roof is where price and coverage meet. An older roof can mean a higher premium or roof claims settled at actual cash value, with depreciation taken off the check. Minnesota law requires insurers to give a premium discount or rate reduction, on policies that include wind coverage, to homes with an IBHS FORTIFIED certificate that includes the hail supplement (Minn. Stat. 65A.298). Replacing a roof anyway? Ask before you pick shingles. Our hail damage and roof claims guide goes deeper.
The home's systems, and its age
Under Minn. Stat. 72A.20, subd. 13, an insurer can't decline, non-renew or charge a different rate for equivalent homeowners coverage solely because of the age of the primary structure. It can, however, rate on the age of the plumbing, electrical, heating and cooling systems when that affects the risk of loss. In plain English: a 1985 house isn't penalized just for being from 1985, so have your update years handy when you quote.
Fire protection and location
The NAIC notes that distance to a fire hydrant and the quality of the local fire department set your fire protection class, and that frame houses usually cost more to insure than brick. Subdivision 13(c) lets insurers use statewide standards like fire protection quality. What they can't do is charge a different rate solely because of the area your home is in, or set more than one rating territory in a first-class city or a second-class city of 60,000 or more (subd. 13(b)). Eagan, Burnsville and Lakeville all clear that line, as our Dakota County home insurance page explains city by city. For local housing and storm history, see home insurance in Eagan, MN.
How do your claims history and credit affect your Minnesota home insurance price?
Short answerPaid claims follow you for years through reports like CLUE, a question that doesn't become a paid claim can't by itself trigger a surcharge, and credit-based insurance scores are allowed with Minnesota-specific limits.
Claims history and CLUE
Many insurers check a LexisNexis C.L.U.E. report when you apply. According to the Consumer Financial Protection Bureau, it holds seven years of home and personal property claims, and you can request one free copy every 12 months. Pull it before you shop; disputing an error is free.
Under Minn. Stat. 65A.285, an insurer can't add a homeowners surcharge, including taking away a claim-free discount, solely because of an inquiry that doesn't result in a paid claim. A small paid claim, though, can follow you longer than the check lasts, so talk a borderline loss through with your agent before filing.
Credit-based insurance scores
Minnesota allows insurers to use credit information for homeowners policies, within limits set in Minn. Stat. 72A.20, subd. 36. An insurer must tell you credit will be used, can't reject, cancel or non-renew on credit alone, and must re-score you on request up to twice a calendar year, with any premium change taking effect at renewal. On request, insurers must also consider reasonable exceptions when a catastrophic illness or injury, a temporary job loss or a death in the immediate family has hurt your credit.
Which deductible and coverage choices change what you pay?
Short answerHigher deductibles lower the premium and raise your cost after a storm, while endorsements like water backup and ordinance or law add premium to close gaps a standard policy leaves open.
All-perils and wind/hail deductibles
Some Minnesota policies now carry two deductibles: one for most losses and a separate, higher one for wind and hail. The Department of Commerce's August 2022 consumer alert described wind and hail deductibles set at "a flat rate or 1 percent or more of the home's replacement value." Our arithmetic: at 1 percent, a home with $400,000 of replacement value would carry a $4,000 wind and hail deductible, and more at a higher percentage; that's what you'd pay toward a storm claim before the policy pays. That's the trade: a lower premium every year, a bigger bill the year the hail comes.
Since 2024, under Minn. Stat. 65A.29, subd. 8a(d), an insurer can offer at renewal to switch you to a percentage deductible for lightning, wind, rain and hail losses without following Minnesota's nonrenewal rules only if it gives at least 60 days' notice, explains it in plain language with an example of how the deductible works, and offers at least one reasonable flat-dollar option no higher than the highest percentage option. Renew without choosing and the flat-dollar deductible applies. That route bases the percentage on the cost, at the time of the loss, to repair, rebuild or replace the property, so check which base your endorsement uses.
Endorsements that add premium, and why they're usually worth it
- Water or sewer backup. The Minnesota Department of Commerce says plainly that neither flood insurance nor a typical homeowners policy covers sewer backup, that you need "a separate product or endorsement," and that the endorsement "varies from company to company." If you have a basement, it's one of the first things we'd add.
- Ordinance or law. Minnesota requires replacement cost coverage to pay for repairs "in accordance with the minimum code" (Minn. Stat. 65A.10), but on a partial loss, unless the policy says otherwise, only for "the damaged portion of the property." Ordinance or law coverage, where offered, typically addresses code costs beyond that, such as undamaged parts of an older home. Check its limit.
- Replacement cost on belongings. If your policy pays actual cash value for personal property, Minnesota requires the declarations page to say "nonreplacement cost" (65A.10, subd. 2). Look for that phrase.
- Flood. Not part of a standard homeowners policy. It's a separate policy with its own premium, covered on our flood insurance page.
Bundling and discounts you may qualify for
The NAIC notes that some insurers lower prices when you insure your home and car together, or when you add deadbolts, alarms or a new roof. Discounts vary by carrier. Shopping auto too? Our guide to lowering Minnesota car insurance costs without cutting protection covers the bundling side.
| The lever | Smart-cheap | Dangerous-cheap |
|---|---|---|
| All-perils deductible | Raise it to an amount you could pay tomorrow | Raise it past what's in savings |
| Wind/hail deductible | Pick it after turning the percentage into dollars | Accept a percentage without doing the math |
| Dwelling limit | Match it to a current rebuild estimate | Lower it to shrink the premium |
| Water backup | Add it if you have a basement | Skip it and hope the sump keeps up |
| Shopping | Compare quotes at identical limits and deductibles | Compare a $1,000 deductible quote with a 2% one |
The only way to know what your house costs to insure is to quote your house. We start with Farmers Insurance® and, when Farmers isn't the right fit, can look at additional carriers available to us. We'll price your current coverage and the coverage we'd recommend side by side. You can start a home insurance quote online or call (651) 252-6655. Se habla español.
The Bottom Line
The most reliable published figure for the average cost of homeowners insurance in Minnesota is the NAIC's: $1,774 for an HO-3 policy in 2022, against $1,569 nationally. It's an average across every HO-3 policy in the state, and prices have risen since, 15% in 2023 alone per the Minneapolis Fed. Higher online figures usually price one sample home at one dwelling limit.
Your premium comes from your rebuild cost, roof, systems, claims, credit and deductibles. Before you judge a renewal, turn the wind/hail deductible into a dollar figure, confirm the dwelling limit matches a current rebuild estimate, and make sure water backup is on the policy if you have a basement. Then compare quotes at identical limits. For how we build Minnesota home policies, see our home insurance page.
Related Questions About Minnesota Home Insurance Costs
Why are online estimates of Minnesota home insurance cost higher than the NAIC average?
They measure different things. The NAIC divides the premium insurers actually wrote for every Minnesota HO-3 policy by the number of insured house-years, which put the 2022 average at $1,774, a blend that includes long-time customers and homes of every size. Comparison sites usually price one sample home at one dwelling limit and deductible at current rates. Neither number is a quote for your house.
How does Minnesota's average homeowners premium compare with the national average?
In the NAIC's 2022 data, published by the Insurance Information Institute, Minnesota's average HO-3 premium was $1,774 against $1,569 for the U.S., about 13% higher; III ranks it 11th highest among the states. The NAIC cautions that average premium is an imperfect measure of price, because hazards, property values and coverage differ from state to state.
Will a higher deductible lower my homeowners insurance premium in Minnesota?
Usually, yes. The NAIC notes that a higher deductible reduces the price of homeowners insurance. The trade-off is what you pay after a loss, so pick an amount you could cover tomorrow. Check both deductibles: some Minnesota policies carry a separate wind and hail deductible, and a percentage version can mean thousands of dollars out of pocket after one hailstorm.
Can a Minnesota insurer drop my homeowners policy because of my credit?
Not on credit alone. Under Minn. Stat. 72A.20, subd. 36, an insurer can't reject, cancel or non-renew a homeowners policy based on credit information without weighing other underwriting factors, and having no credit history can't count against you in those decisions. Insurers must disclose that credit is used, re-score you on request up to twice a calendar year, and consider reasonable hardship exceptions on request.
Does the age of my house raise my home insurance premium in Minnesota?
Not by itself. Minn. Stat. 72A.20, subd. 13 bars an insurer from declining, non-renewing or charging a different rate for equivalent homeowners coverage solely because of the age of the primary structure. Insurers can still rate on the age of the plumbing, electrical, heating and cooling systems when it affects the risk of loss, so have your update dates handy when you quote.
Last reviewed by Ryan Block, licensed Minnesota insurance agent, on October 20, 2026. Minnesota statutes cited (65A.10, 65A.29, 65A.285, 65A.298 and 72A.20) were checked against revisor.mn.gov on that date. Other sources: the NAIC (2022 data via the Insurance Information Institute; May 2025 release; July 2026 report on 2023 data; consumer guide), the Federal Reserve Bank of Minneapolis (August 2024), the Minnesota Department of Commerce (August 2022 alert, April 2024 release, September 2025 task force overview, sewer backup page) and the Consumer Financial Protection Bureau. This is general information, not a quote. Your premium and eligibility will differ, coverage depends on your contract, and not all coverages and discounts are available from every insurer.