Minnesota home insurance costs climbed faster than any other state, report says

Some counties saw rates jump as much as 20% in only six months, according to the insurance comparison site Insurify.

Minnesota home insurance rates climbed sharply in the first half of the year, rising 13% from the end of the previous year, according to a report from Insurify.

The state continues to post the largest increase in the country, with some counties seeing gains of 20% over six months.

The average annual premium rose by $457 to $3,987 as of June.

Minnesota’s rates were below the national average in 2023, but they have surged since then and now stand more than 30% above it, driven by hail and thunderstorms. Home insurance is more expensive in five states, including Florida, where the average annual premium is $8,486.

The National Centers for Environmental Information estimates that Minnesota suffered $10.3 million in property damage from severe weather events during the first part of the year.

Most of that damage came from a storm that produced five tornadoes in southeastern Minnesota and caused more than $9.7 million in property losses, according to the agency.

Even so, that total is still far below the billions of dollars in losses seen in earlier years, which hurt insurers and helped push Minnesota home insurance premiums to some of the highest in the nation.

In one year, a hailstorm that dropped golf ball-sized hail in some areas caused at least $2.6 billion in damage; the following year, a powerful thunderstorm caused at least $1.5 billion in hail and wind damage.

As the climate warms, large hail may become more common. A 2024 projection by Northern Illinois University researchers said warmer conditions over the century could melt smaller hailstones while also producing stronger updrafts that create larger hailstones.

Among the 10 counties with the biggest premium increases so far this year, five are in Minnesota: Le Sueur, Watonwan, Martin, Hennepin and Steele, according to Insurify. Every county in Minnesota now has an average home insurance rate above the national average.

As premiums rise, homeowners are also finding that policies cover less than expected, while roof repair costs continue to increase, CBS reported.

The Better Business Bureau has also warned residents to watch out for “storm chasers” — dishonest contractors who go door to door after storms and pressure homeowners into signing contracts.

Insurify had projected Minnesota’s rates would rise only 4% this year, but the increase had already surpassed that forecast in the first half of the year.