Homeowners’ insurance rates to spike in Minnesota: Report

MINNEAPOLIS (FOX 9) - Homeowners’ insurance premiums in Minnesota are projected to jump by 15%, according to Insurify.

Homeowners’ insurance to get more expensive

The backstory:

Homeowners’ insurance premiums in Minnesota are projected to jump by 15%, according to Insurify. The average annual premium will rise to $4,058, up from $3,524, the report said.

Why are rates going up? 

What we know:

The report blamed severe weather in recent years – including hail storms, which often damage roofs – for the price hikes. Severe weather leads to claims, which costs insurance companies more money, the report said.

What the experts say:

"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," said Andrew Whitman, an insurance professor at the University of Minnesota. He said it is better to negotiate a new policy with your current insurance company.

Homeowners’ insurance premium hikes follow car insurance rate surges 

Car insurance surge:

Car insurance rates in Minnesota jumped by 55% between June 2023 and June 2024, the steepest increase of any state, according to Insurify. The report also blamed severe weather, especially hail storms, for the dramatic increase in premiums. The rise was nearly twice the national average, which was 28%, according to the report. 

The average annual cost of full coverage rose to $2,315, up from $1,492, the report said.