How to be sure your home in Minnesota is properly insured in the face of extreme weather
MINNEAPOLIS — While we don't experience hurricanes or wildfires as extensive as the ongoing devastation in southern California, Minnesota is dealing with an increasing share of destructive weather.
"(It's) not something you see on the news every day, but Minnesota has been very problematic for insurance carriers for the last 10 to 15 years," said Eric Skarnes, president of Insurance Warehouse.
That's because warmer temperatures are increasing the severity and frequency of storms.
From 1980–2024, there were 62 confirmed weather/climate disaster events with losses of over $1 billion each in Minnesota.
"Most Minnesotans do (have adequate coverage), but we know that a handful do not and that number seems to be growing every day as carriers continue to make changes and reduce coverage," Skarnes said.
He says the extreme weather coupled with higher construction costs means Minnesota premiums have not kept up with the payouts for damaged property.
In hail-prone areas like ours, insurers have changed hail deductibles to a percentage of a home's value — typically 2% — which is much more than a one- or two-thousand-dollar deductible.
Homeowners are also finding themselves responsible for a significantly larger share of roof repair costs.
"Reducing things like payments for roofs, we're seeing a lot of cosmetic damage exclusion or matching exclusion, actual cash value for the roofs which simply means you're getting paid what the roof is worth, not what it actually costs to replace that roof," Skarnes said.
These changes are becoming gaps in coverage that most policy holders aren't aware of until disaster strikes.
You should have enough insurance to rebuild your home, replace any belongings, pay for living expenses if you've been displaced and cover damages caused to others.
Skarnes says now — or at the very least on your next policy renewal — you should take stock of your current coverage.
"Speaking with an agent and talking to them about what changes you need to be aware of. If there's unfavorable ones, finding a new carrier is a potential as well," he said.
