Minnesota home insurance costs climbed above the national average in 2025, after the state’s average cost rose by 34%. Since 2023, Minnesota’s average home insurance premium has increased roughly 64%. And costs in the state are likely to rise again this year.
By the end of 2025, the average annual home insurance premium in Minnesota was $3,530, according to Insurify’s 2026 Insuring the American Homeowner Report. That’s about 20% higher than the U.S. average of $2,948.
Insurify data scientists expect premiums in the state to rise another 4% by the end of this year, bringing the typical annual cost to $3,654, an increase of $124.
The report looked at a typical Minnesota policy for a single-family home with about $407,000 in dwelling coverage.
How Minnesota home insurance costs compare
Minnesota homeowners pay much more than the national average. This reflects the area’s higher risk of severe weather and expensive rebuilding costs.
The table below shows the average annual home insurance costs for some of the most expensive and least expensive states in 2025, along with Insurify’s projections for 2026.
Severe storms drive Minnesota insurance costs
Minnesota’s elevated home insurance rates are driven, in part, by the weather the state faces, including hailstorms, tornadoes, and severe thunderstorms. These three weather types accounted for 17 of the 27 separate billion-dollar weather disasters across the U.S. in 2024, according to NOAA.
Hail, in particular, can lead to widespread roof damage, one of the most common and expensive types of homeowners insurance claims, according to the Insurance Information Institute and Verisk.
Insurers factor these losses into pricing models, which helps explain why premiums in states like Minnesota remain above the national average.
What’s next: 2026 forecast for Minnesota home insurance
Minnesota homeowners will likely see insurance premiums keep rising through 2026 as insurers respond to higher claims costs and more expensive building materials, according to Insurify’s report.
Across the country, home insurance premiums are expected to go up by 4% on average, raising the average cost from $2,948 in 2025 to $3,057 in 2026.
For Minnesota homeowners, how quickly premiums rise will mostly depend on storm activity and construction costs, according to Matt Brannon, senior economic analyst at Insurify.
“Severe storms remain one of the biggest drivers of insurance losses across the Midwest,” said Brannon. “If those weather patterns persist, insurers may continue adjusting premiums to reflect the growing risk.
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