You betcha you've come to the right place. Like its Hamm's, hotdishes, and 10,000 lakes, Minnesota has its own character. And house insurance is no different. Whether you're new to the state or just looking for a more affordable policy, we'll show you what makes shopping for Minnesota house insurance rates a little different than anywhere else. First, we'll give you a broad overview of insurance. Then show you some ways Minnesota is different. Finally, we'll show you how to save big money on rates.

Minnesota House Insurance 101
According to the National Association of Insurance Commissioners' 2007 report, Minnesotans paid an average premium of $800. The most popular homeowner's policy? The HO-3 which consists of the following:

  • Coverage from damage to your Dwelling and Other Structures (garage, shed, etc.) from named perils like fire, lightning, etc. Typically only excludes flooding, earthquake, war and nuclear hazard.
  • Coverage from damage to your Personal Property (PP). Coverage is typically 50% of the dwelling amount. And it costs about 70% of the dwelling rate.
  • Personal Liability covers you against civil suits and damages when others are injured on your property. Coverage typically starts at $100,000.
  • Medical Payments pay for medical expenses when others are injured on your property.
  • Additional Living Expenses pay for you to live elsewhere when your home is unlivable. This is usually 20% of your dwelling coverage.

Minnesota House Insurance Differences
Minnesota law says insurance companies can't adjust rates solely on:

  • Different zip code areas in the same town.
  • The age of the home.
  • The geographic location of a town where the home is located.
  • If you were previously denied coverage unless for reasons in state statutes.
  • If you were previously insured under the FAIR Plan—state subsidized insurance.

If you have a loss and you and your insurance company can't agree on a settlement, Minnesota will resolve the dispute through an appraisal process.

It's no secret Minnesota floods. You only have to look at 2009's Red River Valley flooding to see the damaging effects. Standard policies don't cover flooding. You'll need to buy a separate policy that averages about $300 a year. About 90% of Minnesotans live in an area participating in the National Flood Insurance Program. Between this program and local insurance companies, you should be able to find an inexpensive policy.

Other Things You Should Know
Know what your home's replacement value is. It's not the market value or tax assessed value and does not include your land and foundation. It's what it would cost to rebuild at today's construction costs and is usually expressed as a cost per square foot.

Know the difference between Actual cost value (ACV) vs. replacement cost- ACV takes depreciation (age, wear, tear) into consideration when calculating for a loss. For example, a storm takes off your 10-year-old roof and needs to be replaced. If the average life of a roof is 20 years, you'd most likely be reimbursed for half of what a new roof would cost. Replacement cost—usually purchased at a higher premium—replaces, repairs, or rebuilds using the same or similar materials without considering depreciation. Be sure to ask about these for your home and PP.

Ways to Save on Minnesota House Insurance Rates
As promised, here's the good stuff. First, you can save as much as 12% by increasing your deductible from $250 to $500; save up to 30% by increasing it to $2,500. Want to save another 50% on your Minnesota house insurance rates? If you qualify for the discounts offered by insurance companies you could. Here's a list of standard discounts. Be sure to ask an agent about them.

  • House protective devices like dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, and new plumbing/wiring.
  • New house discounts. The newer the house the lower the risk.
  • Multi-line (house, auto, life)
  • Senior (55+)
  • Non-smoker
  • Paying in advance vs. making monthly or bi-monthly payments.
  • Payroll deducted payments
  • Military

Finally, the biggest way to save on your Minnesota house insurance rates is by comparison shopping with LocalInsurance. LocalInsurance searches the web for agents in your area, giving you a handful of rates and companies to compare. It's quick and easy and could save you hundreds.

Minnesota has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.