The Minnesota home insurers' market is a very competitive one, and has been so for many years. According to the Minnesota State Insurance Department, nearly 200 insurers currently write home insurance policies in Minnesota, generating over $2 billion in annual premium.

Our homes represent the largest investment most of us will ever make. Home and property loss can be devastating and unexpected, so it is vitally important to hold sufficient coverage to help ease any economic and emotional hardship this could bring you and your family.

Choosing Your Home Insurance Policy

Minnesota home insurance policies are sold on either a monoline basis or as a package policy. A monoline policy contains coverage of only one type, while a package policy includes several different types. Package policies are generally less expensive than those purchased separately; Minnesota homeowner's and tenant's policies are sold in packages that protect against liability, property, theft, and medical payments.

Available homeowner's policies in Minnesota include:

1. Homeowner's - 1 (HO-1)—A basic policy insuring your home and its contents against certain perils such as fire or smoke damage, windstorms, hail, explosions, bodily injury, medical payments, and vandalism and malicious mischief. Offered by very few insurers, due to its narrow coverage definitions.
2. Homeowner's - 2 (HO-2 )—Insures against perils in the HO-1 policy, as well as against falling objects; weight of ice or snow; damage resulting from an accidental discharge or overflow of water from within a plumbing, heating or air conditioning system, or automatic fire sprinkler system; and electrical damage to appliances.
3. Homeowner's - 3 (HO-3)—The standard and most-widely-used policy. Covers your home for all risks of physical loss except those specifically excluded. Also offers coverage for loss of your home's contents.
4. Tenant's/Renters - (HO-4)—Insures against damage to an apartment's contents and against personal liability suffered in the insured's unit.
5. Homeowner's - 5 (HO-5)—Protects your home against the same perils as HO-3, in addition to covering your personal possessions for all risks of physical loss, except those specifically excluded.
6. Condominium Unit Owner's/Town Home Owner's - (HO-6)—Provides the same coverage as HO-4, but used in insuring condominiums.
7. Homeowner's - 8 (HO-8)—A modified version of the HO-1 policy, providing actual cash value coverage instead of replacement cost coverage. Generally used when replacement value exceeds the home's worth. The Minnesota Fair Plan (Minnesota Property Placement Facility) writes this type policy.

How Much to Buy

Determining the type and amount of Minnesota home owner insurance coverage you need takes a thorough analysis of several factors. These factors include your home's construction materials, its age, and the personal property contained within, as well as your monthly finances and budget.

You should buy just enough Minnesota home insurance to provide adequate coverage in case of a loss, but not so much that you cannot afford to pay your premium. Talk to a Minnesota independent insurance agent to determine the amount of coverage you need.

Selecting an Insurance Agent/Company

Becoming informed on how to select a knowledgeable Minnesota home insurance agent is one of the best ways to ensure your family's future security and safety.

When selecting a Minnesota home insurance agent or company, choose one that is state licensed. This should ensure its expertise.

Comparison shop to make sure you get the most coverage for your money. Check a company's rating on the Internet or at your local library through firms such as A.M. Best, Standard & Poor's, Weiss Ratings Inc., or Duff & Phelps. These ratings services provide you with the company's history, financial stability and customer service scores.

Claims Settlements

There are two methods Minnesota home insurance companies use to settle your homeowner's insurance claim. The method used determines the amount you pay in premiums and the amount you receive in the event of a claim.

One technique is insuring for your home's actual cash value. This pays you for the replacement cost of your home minus its depreciation. This means you are reimbursed what your property was worth immediately before your loss.

Another technique is insuring against your home's replacement cost. In this case, you are paid what it would cost to rebuild or replace your home using similar materials, up to the limits of your policy. This method pays you more because there is no deduction for depreciation. However, it requires insuring your home for at least 80 percent of its replacement value.

Cancellation/Nonrenewal

Minnesota law states that a homeowner's insurance company may cancel your Minnesota home insurance policy during the first 60 days it is in effect. However, your insurance company must provide the specific reason or reasons for the cancellation in order to do so.

After your policy has been in effect for 60 days, it may be cancelled or nonrenewed for the following reasons only during the remainder of the first three years:

• Nonpayment of premium
• Conviction of a crime
• Fraud or misrepresentation in obtaining the policy
• Willful or reckless acts of omission
• Physical changes in the property which cause it to become uninsurable
• Continuation of the policy violates or causes the insurer to violate the law

Your Minnesota home insurance company may again refuse to renew your policy after the first three years; they must, however, provide you with at least 45-60 days written notice of nonrenewal.

Request a quote from us. We can help!

We have provided this information to aid you in the purchase of your Minnesota homeowner's insurance policy. Now, let us help you further. Click the box below, and we'll shop multiple company's for you, saving you time and money.

One easy form, it only takes a couple of minutes.