New report shows steep rise in Minnesota homeowners insurance premiums

For Minnesota homeowners, protecting their biggest investment is becoming increasingly expensive.

A new report from the Insurance Federation of Minnesota finds average homeowners insurance premiums climbed from $1,313 in 2015 to $2,037 in 2023. And according to Julia Taliesin from Insurify, Minnesota has experienced the largest homeowners insurance premium growth in the country.

"Severe weather, primarily hail and thunderstorms, are definitely a main driver of the increase," said Taliesin, economic analyst at Insurify.

"There's not a disconnect. They're directly tied to the losses the insurers [are] paying out. And we've seen more significant storm activity, and more importantly, more expensive damages that occur when these storms come through," said Aaron Cocking, Insurance Federation of Minnesota.

Inflation, tariffs and higher labor costs are all making repairs more expensive. Those costs ultimately get passed along to homeowners through their premiums.

There are several possible solutions, but experts say there's no single fix.

For homeowners, that means shopping around, comparing coverage, discovering discounts and making improvements to help roofs withstand hail and severe weather.

For state lawmakers, this year's recommendations from Minnesota's insurance task force include strengthening programs that help homeowners pay for the improvements, updating building codes to require more weather-resistant construction and examining ways to expand coverage options for people who struggle to find insurance.

Cocking says keeping a competitive insurance market is also key.

"I think the biggest thing is making sure that they don't overstep," said Cocking.

The report also found just 35% of Minnesotans understand their homeowners policies, highlighting the importance of reviewing coverage before disaster strikes.