Minnesota Homeowners Face Average Insurance Rates, as Climate Risks Threaten Stability Nationwide

Minnesota homeowners face mid-range insurance costs compared with the rest of the U.S.

While not as affordable as neighboring Michigan or Wisconsin, Minnesota insurance premiums are still far below the levels seen in Gulf Coast states like Florida and Louisiana. New data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report highlights how Minnesota fits into the national picture.

Minnesota’s Insurance Costs in Context

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Minnesota homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowners insurance, while those without a mortgage average the same $1,500–$1,999. Overall statewide costs also fall into the $1,500–$1,999 range.

Minnesota has 1,692,435 insured homeowner households in total—1,059,567 with a mortgage and 632,868 without. Among mortgaged owners, 104,377 pay less than $100 annually and 102,796 pay $4,000 or more. Among those without a mortgage, 104,674 pay less than $100 and 50,840 pay $4,000 or more.

Compared with nearby states, Minnesota sits on the higher end. Wisconsin, Illinois, and Iowa homeowners with a mortgage typically pay $1,000–$1,499, while Michigan averages the same for mortgaged owners and even less ($800–$999) for those without. North Dakota also falls into the lower category at $1,500–$1,999 for mortgaged households, matching Minnesota but trending slightly less for non-mortgaged. This positions Minnesota among the pricier insurance states in the Upper Midwest, though still far less than storm-heavy regions.

Climate Risks and Regional Pressures

The Realtor.com 2025 Climate Risk Report underscores how climate-exposed markets in the South drive national averages upward. Miami, Florida tops the list, with average annual premiums of $22,718, equal to 3.7% of home value. Other Florida metros like Cape Coral, Sarasota, and Tampa also appear among the most expensive.

Minnesota does not appear on the list of metros with the steepest insurance burdens, nor does it rank highly for flood or hurricane risks. However, the state is not immune to climate hazards. Severe winter storms, spring flooding, and occasional tornadoes can create insurance challenges, though not at the catastrophic level seen in the Gulf Coast or wildfire-prone West. For now, this helps keep premiums in a manageable mid-range.

A National Affordability Concern

Even though Minnesota’s costs are mid-range, the broader national story is one of rising concern. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, and nearly half said they had already faced difficulties renewing or obtaining coverage.

These concerns are already shaping buyer behavior. Nearly 30% of homebuyers said they had completely changed the geographic area they were searching in due to insurance concerns, while another quarter said they had overhauled their buying strategies altogether. Even more troubling, 58% of homeowners nationwide said they would consider dropping coverage altogether if premiums became too high, with Gen Z the most likely to go uninsured.

For Minnesota homeowners, premiums remain moderate compared with the most climate-exposed regions. But as extreme weather events increase across the Midwest, insurance costs may continue to rise, narrowing the affordability gap between Minnesota and its higher-cost neighbors.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.