Minnesota Homeowners Insurance

Minnesota homeowners insurance is a practical necessity to protect the health and financial wellness of yourself and the people you love. In Minnesota, homeowners insurance can be obtained from many sources. Keep in mind, determining which company is best to cover your needs may take a little bit of effort. Read through the list below before you commit to one company to take care of your homeowners insurance needs for your MN residence.

Minnesota Homeowners Insurance Coverage Basics 

A basic MN home insurance policy covers your home, surrounding buildings, and the personal property contained within your home, in the other buildings, and on your land.  The policy protects against certain disasters like fires, hail, ice, lightning and wind, and also covers against vandalism and other acts of violence.

Most general policies do not offer coverage for large scale disasters like earthquakes and floods.  They may also not cover against certain things outlined in your policy.  This is why reading your policy thoroughly is important.

Most mortgage companies will require you to have homeowners insurance.  They usually also have a minimum coverage amount specified in your mortgage agreement.

As mentioned, a general insurance policy will cover your property and it also covers liability.  Liability is coverage that protects you when someone is injured on your property.  Imagine a visitor slipping on an icy side walk or getting hit by a falling limb in a storm. This will pay medical expenses and other related expenses as deemed necessary.  This coverage is mainly protection for you against a lawsuit.

Flooding And Minnesota Homeowners Insurance

As noted earlier, insurance companies do not offer insurance against floods in a general policy.  Flood insurance is regulated and offered through special National Flood Insurance Program policies, but only in areas where it is deemed necessary to have coverage.

It is important that you check your flood risk and get the proper additional insurance.  Remember, being outside of a high risk area does not mean you are entirely safe.  Look at the following facts about flooding in Minnesota before dismissing the idea of flood insurance:

1. 20 to 25% of flood claims made in the state are from outside high risk areas.
2. Less than 50% of all floods are considered a national disaster and eligible for federal assistance.

Here are some other things to know about flood insurance:

1. Insurance plans are based on where your home falls on the flood plain.
2. Policies are for either 100 year flood plain or 500 year flood plain.
3. The policy is not effective until 30 days after the date it is purchased.
4. Average premiums are $400 per year, but low risk policies can be as low as $100.

Factors That Affect Minnesota Homeowners Insurance Rates

There are many factors that affect the rate you get for Minnesota homeowners insurance.  The insurance company will review all the information they gather from you to determine your risk level and base your insurance rate on that.

Your insurance company will ask you for information about:

1. your work history
2. your credit history
3. your home
4. your personal hobbies and possessions

Your work history and credit history will tell them how reliable you are so they can decide if you will be responsible for making your payments. Even if your credit is in poor shape now, improving it is likely to pay off in reduced rates in the future.

The questions about your home will help them decide the risk of disasters at your home.  Things like the following will all be considered:

1. security features
2. construction of the home
3. location of the home
4. access to fire rescue

Other things that will go into calculating your rate include:

1. deductible – typically the higher the deductible, the lower the premium
2. types of coverage – the simpler plans will cost less
3. the amount of coverage – lower amounts will cost less

Compare Minnesota Homeowners Insurance Quotes Online Now! 

You can help yourself save money on your insurance by choosing only what you need for coverage and a deductible that is reasonable.  You can also make changes to your home to make it safer and more efficient.

In addition to these things, one of the best ways to get the lowest rate is to shop around.  You should get quotes form various companies to see what the lowest rate offered is.