Minnesota homeowners are facing a substantial increase in their insurance premiums this year. According to a report by Insurify, homeowners’ insurance rates in Minnesota are expected to jump by 15%. The average annual premium is projected to rise to $4,058, up from $3,524 last year.
The report attributes this significant price hike to the severe weather conditions experienced in recent years, particularly hail storms that frequently damage roofs. These weather events have led to an increase in claims, resulting in higher costs for insurance companies.
Expert Insights on the Rate Hike
Andrew Whitman, an insurance professor at the University of Minnesota, advises homeowners against immediately switching to new insurance providers. “People should not start shopping because underwriters across the board are very leery of new insurers on it because the claims experience of new insurers is much higher than existing,” Whitman explained. He recommends that homeowners negotiate a new policy with their current insurance company instead.
Related Insurance Trends in Minnesota
This increase in homeowners’ insurance premiums follows a significant surge in car insurance rates in Minnesota. Between June 2023 and June 2024, car insurance rates jumped by 55%, the steepest increase of any state, according to Insurify. The report again blamed severe weather, especially hail storms, for the dramatic rise in premiums. The average annual cost of full coverage rose to $2,315, up from $1,492 during the same period.
The national average increase in car insurance rates was 28%, with Minnesota’s rise being nearly twice that amount. This trend indicates that severe weather conditions are having a profound impact on insurance rates across different categories in Minnesota.
