What Minnesota Homeowners Need to Know About Rising Insurance Rates

As Minnesota homeowners settle into 2025, many are facing a concerning trend: steadily increasing homeowners insurance premiums. Whether you're a current homeowner or looking to buy or sell in the Twin Cities area, understanding what's driving these rate increases can help you make informed real estate decisions. At Golden Homes Group MN, we're exploring how you can navigate these price hikes effectively.

Why Are Home Insurance Rates Increasing?

Minnesota homeowners have seen a sharp rise in home insurance premiums in recent years. Since 2018, rates have surged by 39%, putting a financial strain on homeowners. Several key factors are driving these increases, including:

• Severe Weather – Extreme weather events are becoming more frequent in Minnesota and across the country, causing property damage and higher insurance rates. 
• Rising Construction Costs – Inflation, supply chain disruptions and labor shortages have increased the cost of rebuilding homes, forcing insurers to raise premiums.
• Increased Claim Payouts – A rise in large insurance claims, particularly from storm damage, has pushed insurers to adjust their pricing models.
• Changes in Risk Assessments – Insurance companies continuously evaluate risks, and as certain areas become more prone to extreme weather, rates are adjusted accordingly.
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For potential buyers, higher premiums add to the monthly cost of homeownership, potentially affecting what price range they can consider. If you're planning to sell, understanding how insurance rates affect buyer decisions can help you position your property more effectively.

​How to Manage Rising Home Insurance Costs

While homeowners can’t control market-wide insurance rate hikes, there are several strategies to help reduce premiums or offset rising costs.

1. Shop Around for Competitive Rates
Insurance companies adjust their rates based on individual risk assessments, meaning one provider may offer a significantly better deal than another. Compare quotes from multiple insurers to find the most competitive rate.

• Request quotes from at least three different insurance providers.
• Work with an independent insurance agent who can compare policies on your behalf.
• Look for discounts based on loyalty, bundling, or home safety improvements.

2. Improve Home Safety & Disaster Preparedness
Insurance providers may offer discounts for homes equipped with features that reduce the likelihood of costly claims. Consider upgrading your home’s safety measures to lower your premium.

• Install a home security system to reduce the risk of theft.
• Upgrade to a hail-resistant roof to minimize potential storm damage.
• Ensure your home has functioning smoke detectors and carbon monoxide alarms.
• Maintain your property by trimming trees and reinforcing windows and doors to reduce potential storm damage.
  
  

3. Consider Increasing Your Deductible
Raising your deductible — the amount you pay out of pocket before your insurance kicks in —  can help lower your monthly premium. However, it’s essential to choose a deductible that aligns with your financial situation.

• A higher deductible means lower premiums, but you’ll need to cover more if you file a claim.
• Set aside emergency savings to cover your deductible in case of an unexpected event.
  
  

4. Understand Your Policy & Coverage Options
Many homeowners are paying for coverage they don’t need, while others are missing out on cost-saving adjustments. Review your insurance policy annually and discuss any changes with your provider.

• Make sure you’re not over-insured by reviewing replacement cost vs. actual cash value options.
• If your home value has changed, adjust coverage accordingly to avoid overpaying.
• Look into alternative coverage options, such as higher wind/hail deductibles, flood insurance or additional endorsements.

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Insurance Questions to Ask When Buying or Selling

If you’re buying or selling, being prepared with the right questions can make all the difference.

For Buyers:

• Can I see the CLUE (comprehensive loss underwriting exchange) report for this property?
• Have there been any water-related claims in the past 5 years?
• What recent upgrades might positively impact insurance rates?

For Sellers:

• What home improvements could make my property more attractive from an insurance perspective?
• Should I provide documentation of recent upgrades to potential buyers?
• How do nearby properties compare in terms of insurance risk factors?

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​Will Insurance Rates Continue to Rise?

​While it’s difficult to predict exactly how much home insurance premiums will increase in the coming years, the trends suggest continued volatility. Insurers will continue adjusting rates based on weather patterns, claims history and rebuilding costs. Staying informed and proactive can help homeowners navigate these changes with minimal financial impact.

If you’re a Minnesota homeowner looking for expert guidance on navigating the real estate market amid rising costs, we’ve got you covered. At Golden Homes Group MN, we can help turn obstacles into opportunities so you can keep your investment protected.

​Need Help Navigating These Changes?

Whether you're concerned about your current home's insurability or wondering how insurance trends might affect your next real estate move, professional guidance can make all the difference. The Golden Homes Group MN team understands how insurance considerations factor into successful real estate decisions in today's market.

Contact Sheri Wessel or Melany Thelander today to discuss how these insurance trends might impact your specific situation!

Sheri Wessel
Office: 651-379-5252
Mobile: 651-270-7157
Email: [email protected] 

Melaney Thelander
Office: 651-379-5252
Mobile: 651-500-8789​
Email: [email protected]