If your homeowner’s renewal made you do a double take, you’re not alone. Minnesota rates rose 34% in 2025, the largest jump of any state, pushing the average premium to about $3,530 (Minnesota Reformer). Many policies also cover less than they used to. Here’s what’s driving costs are, the coverages Minnesotans most often overlook, and a checklist for your next policy review.
Why rates have gone through the roof
The short answer is hail and wind. Minnesota went from the 21st most expensive state for home insurance to 9th since 2023.
- Severe storms. A May 2022 hailstorm caused at least $2.6 billion in damage, and an August 2023 storm caused at least $1.5 billion. Insurers lost money on Minnesota homeowners’ policies in those years.
- Still climbing. Minnesota had the largest average premium increase of any state in the first half of 2026 (+$457), and some southern counties saw increases of 20% or more.
- Higher rebuild costs. Materials, labor, and post-storm contractor demand all raise home repair costs.
- Reinsurance and fewer choices. Insurers pay more for their own catastrophe coverage, and Midwest non-renewals rose 125% from 2018 to 2024.
The variables that matter now
- Wind/hail deductibles. Many policies now use a percentage deductible, often 1% to 2% of the dwelling limit. On a $400,000 home, 2% means you pay the first $8,000 of a hail claim.
- Roof age. Older roofs are increasingly paid at actual cash value (ACV) or on a depreciation schedule, not replacement cost.
- Roof upgrades. Minnesota requires insurers to offer a discount for homes certified to the IBHS Fortified standard (Minn. Stat. 65A.298). Class 4 impact-resistant shingles may also earn credits.
- Dwelling limit. If your coverage hasn’t kept up with rebuild costs, you may be underinsured.
- Claims history, insurance score, and location all affect price, with southern Minnesota seeing the steepest increases.
Roof schedules: do you have one?
A roof schedule (often called a roof surfacing payment schedule) pays for hail or wind damage to your roof based on the roof’s age and material, not on what it actually costs to replace. The older the roof, the smaller the check.
For example, a schedule might pay full replacement cost for a roof under 10 years old, 50% at 15 years, and 30% at 20 years or more, with your deductible still subtracted. On a $20,000 re-roof, an older roof could leave you paying well over half. Percentages vary by carrier.
Roof schedules are often added at renewal to keep premiums down, so many homeowners don’t know they have one. Look for the endorsement on your declarations page.
Ask: Do I have a roof schedule? What would it pay at my roof’s current age? Can I remove it, and what would that cost?
Service line coverage
The water, sewer, gas, and buried electric lines running from the street to your house are usually your responsibility, not the city’s. A standard policy typically won’t pay if they fail due to wear, tree roots, or frost.
Service line coverage is an inexpensive endorsement that pays to dig up, repair, and replace them. Deep frost, mature trees, and aging clay or cast-iron sewer laterals make Minnesota homes prime candidates, and a sewer line replacement can easily run five figures.
Ask: What’s the limit? $10,000 is common; $25,000 is often available. Does it include excavation and restoring landscaping or driveways? Which lines are covered?
Matching vs. limited or unmatched roofing and siding
Hail usually hits one side of a house. If the damaged siding or shingles are discontinued, the question is whether your insurer pays only for the damaged pieces or enough to make the house look uniform again.
- Matching coverage pays to replace undamaged adjoining material so the repair reasonably matches, which can mean a full wall or roof slope.
- Limited or no matching pays only for the damaged area. If the color or style doesn’t match, it’s your problem.
Some carriers have added matching exclusions to control costs, and Minnesota courts have enforced them. Contractors online sometimes describe matching as guaranteed by state law. But don’t count on it; the policy you purchased or renewed dictates the outcome.
Ask: Does my policy limit matching or exclude cosmetic damage? Can I buy matching coverage back? Is my roof covered at replacement cost or ACV?
Water backup, sewer and drain coverage
A backed-up floor drain or failed sump pump is one of the most common basement claims in Minnesota, and standard policies exclude it without endorsement. With so many finished basements, one backup can ruin flooring, drywall, and furniture.
| Situation | Typically covered by |
| Burst pipe inside the home | Standard policy |
| Sewer or drain backup, sump failure | Water backup endorsement |
| Broken buried water or sewer line | Service line endorsement |
| Overland flooding, rising water | Separate flood policy |
| Slow leaks, seepage | Usually not covered |
Ask: Is my backup limit enough for my finished basement? Base limits of $5,000 to $10,000 are common; $25,000 or more may be needed. Do I need flood insurance? Flood policies usually have a 30-day waiting period.
Personal injury coverage
Despite the name, this isn’t about someone slipping on your steps. That’s bodily injury, already part of your standard liability coverage.
Personal injury is an add-on for non-physical harm you’re accused of causing: libel or slander (including social media posts), invasion of privacy, false arrest, or wrongful eviction. One heated neighborhood post or HOA dispute can bring a lawsuit, and the endorsement is usually inexpensive.
Also check your liability limit. Many homeowners carry $100,000 to $300,000. $500,000 is a sensible floor, and an umbrella policy adds $1 million or more for a modest premium.
Other endorsements worth a look
- Ordinance or law: pays to rebuild to current code; base limits are often just 10% of the dwelling limit.
- Extended replacement cost: adds 25% to 50% above your limit if rebuild costs spike after a big storm.
- Scheduled property: full coverage for jewelry, firearms, and collectibles beyond low theft sub-limits.
- Equipment breakdown: covers furnaces, water heaters, and appliances that fail mechanically. Losing a furnace in January is a real risk.
The Minnesota homeowner’s insurance checklist
Pull out your declarations page and check each box you can answer yes to.
| Question | ✓ |
| Dwelling and deductibles | |
| Does my dwelling limit reflect today’s cost to rebuild? | ☐ |
| Do I know my wind/hail deductible in dollars, and could I pay it? | ☐ |
| Do I have extended replacement cost and enough ordinance or law coverage? | ☐ |
| Roof and siding | |
| Is my roof covered at replacement cost rather than ACV? | ☐ |
| Do I know whether my policy has a roof schedule, and what it would pay at my roof’s age? | ☐ |
| Do I know whether my policy limits matching? | ☐ |
| Have I asked about impact-resistant or Fortified roof discounts? | ☐ |
| Water | |
| Do I have water backup coverage with a limit that fits my basement? | ☐ |
| Do I have service line coverage? | ☐ |
| Have I decided whether I need flood insurance? | ☐ |
| Liability | |
| Is my liability limit at least $500,000? | ☐ |
| Do I have personal injury coverage? | ☐ |
| Have I considered an umbrella policy? | ☐ |
| Belongings and more | |
| Are my belongings covered at replacement cost? | ☐ |
| Are valuables like jewelry and firearms scheduled? | ☐ |
| Have I considered equipment breakdown coverage? | ☐ |
| Does my insurer know about any home business or rental activity? | ☐ |
| Do I have a current home inventory stored off-site? | ☐ |
| Have I compared quotes and asked about discounts in the last two years? | ☐ |
The bottom line
Premiums have risen fast, but the bigger risk is paying more and still being underinsured. These endorsements are usually inexpensive compared with the claims they prevent.
If you have questions or need assistance, please contact us at 952-469-5502.
This is general information only, not legal advice or a coverage guarantee. Coverage varies by carrier; your policy language controls.