Homeowners insurance in Minnesota

The home insurance market in Minnesota

Minnesota homeowners paid $4.61 billion in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

Two companies set the tone here. State Farm writes more than a quarter of the market, and Wisconsin-based American Family adds another 15%, so together they hold about 42%. Auto-Owners, selling through independent agents, is a solid third. Township and farm mutuals also write here and had their own seat on the Legislature's 2025-2026 property insurance task force.

What drives home insurance costs in Minnesota

For a state without a hurricane coast, Minnesota is expensive to insure. NAIC's average HO-3 premium was $1,988 in 2023, about 14% above the national $1,737 and the 11th highest among the states and D.C. by our ranking of NAIC's table.

Wind and hail are the main story, and Minnesota's own laws show it: the 2024 nonrenewal rules single out claims from lightning, wind, rain and hail, and the state's FORTIFIED discount law covers only homes certified to the standard's hail supplement. An insurance-industry member of the Legislature's Task Force on Homeowners and Commercial Property Insurance wrote in February 2026 that the homeowners combined ratio in Minnesota had been "well over 100%" in recent years, meaning insurers paid more in claims and expenses than they collected, and that a 1% wind/hail deductible (1% of Coverage A, or $5,000 on a home insured for $500,000) is now commonplace. The task force itself found "legal system abuse" a significant driver of rising premiums and asked the Legislature to examine legal reforms and third-party litigation funding.

Deductibles and coverage rules to know

Minnesota has no hurricane deductibles, but percentage wind/hail deductibles are now common. When a policy is written that way from the start, the percentage is often of Coverage A (dwelling), as in the example above, so read the declarations page and run the numbers in the hurricane and percentage deductible calculator.

If your insurer wants to move an existing policy to a percentage deductible for lightning, wind, rain and hail at renewal, a 2024 law (Minn. Stat. §65A.29, subd. 8a) says it must:

• give you at least 60 days' notice that explains the change in plain language with a worked example;
• make the percentage apply to the cost "to actually repair, rebuild, or replace" the property at the time of the loss; and
• offer at least one reasonable flat-dollar deductible instead. If you renew without choosing the percentage, you get the flat-dollar deductible.

Compare the two options before the renewal date; wind and hail deductibles explained explains the trade-off.

The same law lets an insurer nonrenew a home that had three or more covered lightning, wind, rain or hail losses of more than $10,000 each in five years. Otherwise, Minnesota protects you from losing coverage over ordinary claims:

• Notice: nonrenewal, or cutting limits or coverage, needs 60 days' written notice with the specific reason. Once a policy has been in force 60 days, midterm cancellation is allowed only for nonpayment, fraud, an act that materially increases the risk, or uncorrected physical changes that make the home uninsurable, with 30 days' notice (20 days for nonpayment) (§65A.01, §65A.29).
• Appeal: you can appeal a nonrenewal to the Commerce commissioner, and the policy stays in force while the appeal is pending (§65A.29, subd. 8). A written objection to a nonrenewal, coverage cut or cancellation filed within 30 days of the notice gets a ruling within 30 days (subd. 9).
• Fair treatment: an insurer may not surcharge you for asking a coverage question (§65A.285), and may not refuse to renew solely because of the home's age, its neighborhood, a past FAIR Plan policy or another insurer's refusal (§72A.20, subd. 13).

From January 1, 2027, homeowners policies may not exclude damage from police use of chemical irritants, smoke or flash-bang devices when the owner is an innocent third party (2026 Minn. Laws ch. 68).

Flood and other gaps

Your insurer must send you a notice every year titled "Important Information About Damage Caused by Flooding" explaining that the policy excludes flood (§65A.302). Few Minnesotans buy flood coverage: FEMA data show about 6,200 NFIP policies in force statewide as of September 30, 2026, about 15% of them in Hennepin County (our calculations from FEMA's community figures). River flooding, including spring snowmelt floods, is not covered by a homeowners policy, and new NFIP coverage generally has a 30-day waiting period. See NFIP flood insurance explained.

If you can't find coverage

The Minnesota FAIR Plan, created in 1968, insures people who have been canceled, nonrenewed or turned down in the private market; an offer from a standard insurer disqualifies you. Any Minnesota-licensed agent must help you apply, though agents cannot bind coverage. It writes owner-occupied homeowners coverage plus HO-4, HO-6 and HO-8 forms, DP-1 dwelling fire, farm fire and commercial fire. Coverage cannot exceed the market value of the structures, based on the county assessor's figure or a recent sale price, plus an allowance for debris removal, so it may not cover the full cost to rebuild a home whose construction cost exceeds its market value.

By law the plan cannot decline you because of your neighborhood or an environmental hazard outside your control; it can decline or add a condition charge only after inspecting the property at no cost to you, and you can appeal to its governing board and the commissioner (§65A.34, §65A.36). Premiums can be paid in four installments without fees. See FAIR plans explained: the insurer of last resort for homes.

Claims rules and deadlines

Minnesota's claim rules (Minn. Stat. §72A.201) set business-day deadlines. The insurer must acknowledge your claim within 10 business days, complete its investigation and tell you whether it accepts or denies the claim within 30 business days (or explain in writing why it needs more time), and in all events decide within 60 business days of receiving a properly executed proof of loss. An agreed settlement must be paid within 5 business days. If the insurer sends you a proof of loss form by certified mail, you have 60 days to return it, or the claim may be barred unless you show good cause (§65A.296).

The standard policy requires suit within two years after the loss and includes an appraisal clause for disputes over value; see the appraisal clause: settling a claim value dispute. If an insurer denies benefits with no reasonable basis and knows it or acts in reckless disregard of that, a court can add up to half the amount by which the award exceeds the insurer's last offer, capped at $250,000, plus up to $100,000 in attorney fees (Minn. Stat. §604.18). That remedy is lost if the claim is resolved by appraisal, so talk to a lawyer before invoking it.

Discounts and mitigation programs

Under a 2023 law, an insurer must give a premium discount or rate reduction to a home with a FORTIFIED designation that includes the hail supplement (Minn. Stat. §65A.298); the law sets no percentage, so ask for the insurer's filed figure. The Strengthen Minnesota Homes Act (§65A.299) created a grant program for FORTIFIED retrofits by trained contractors, and IBHS has said Minnesota expects to grant up to $10,000. As of the task force's February 13, 2026 report, the program still needed money: the task force's second recommendation was that the Legislature fund it. Ask Commerce whether grants are open before you sign a roofing contract. See The FORTIFIED Home standard and insurance discounts and Impact-resistant (Class 4) roofs and hail discounts.

Where to get help

The Minnesota Department of Commerce is at 85 7th Place East, Suite 280, Saint Paul, MN 55101; call 651-539-1600 or 800-657-3602, or email [email protected]. The FAIR Plan is at 7900 International Drive, Suite 625, Bloomington, MN 55425, 800-524-1640. See how to file a complaint with your state insurance department and the nonrenewal action plan. Neighboring state guides: Wisconsin, Iowa and North Dakota.