Minnesota Home Insurance: 5 Things That Raise Your Premium (and How to Avoid Them)

Homeowners insurance keeps getting more expensive in Minnesota, and some of it is in your control. I sat down with Jess Gyllen, who owns a Goosehead Insurance franchise, to talk through five things that drive premiums up, and what buyers should think about before they make an offer.

Examples are as discussed in my video above (2025). Every carrier has different rules, so get quotes on a specific home before you commit.

1. Location

• Carrier availability varies by county. Some carriers simply won’t write policies in certain counties, which limits your options and can raise prices.
• Flood zones. Homes in a FEMA flood zone, or with a recent flood history, can be harder to insure. You can check FEMA’s flood maps yourself, and your agent can help.
• Distance to a fire hydrant and fire station. Carriers often look for a hydrant within about 1,000 feet and a fire station within about 5 miles. On a roughly $1 million home, Jess saw premiums around $5,600 a year inside those limits versus about $13,000 outside them. If you’re shopping for acreage, get an insurance quote early.

2. Your insurance score and claims history

Your credit helps, but carriers also look at your insurance score, which reflects your claims history (home, auto, boats and snowmobiles) and things like driving violations. Even calling to ask about a claim can be noted on your file. Claims typically follow you for three to five years.

Don’t get claim-happy. Water damage you could have prevented, like an ignored roof leak or a failed sump pump, counts against you more than events out of your control like hail, tornadoes or fire. If a claim is $3,000 and your deductible is $1,000, you net $2,000, but the higher premiums (or even non-renewal) that follow can cost more than that. Small water issues are often better handled out of pocket.

3. The home itself

• Roof age. Many carriers want to see a roof 10 years old or newer; older roofs may get limited coverage or none.
• Cedar shake roofs can be hard to insure, even when fairly new, because they’re expensive to replace. If one is mossy or worn, get a specialist’s inspection and factor it into your offer.
• Knob-and-tube wiring, common in homes from roughly the 1880s to 1930s, is a fire risk, and some carriers won’t insure it at all. Older homes on streets like Summit Avenue in Saint Paul can still have it.
• Wood or coal secondary heat sources (beyond a standard fireplace) are seen as higher risk than gas or electric.

See scary Minnesota home inspection findings.

4. Coverage and deductibles

Carriers use a replacement cost estimator based on square footage, finishes, craftsmanship and age. If you think that number is low, extended dwelling coverage (often 25% or 50% more) is a good safety net.

Then pick your deductible. A higher deductible means a lower premium, and the industry is moving that way anyway. Deductibles of $5,000 or $10,000 are increasingly common on higher-value homes, and many carriers now use a separate wind/hail deductible of about 1% of dwelling coverage ($5,000 on a $500,000 home).

Why? Minnesota has been a money-losing state for insurers in recent years, largely because of hail. Roof replacement costs have soared, and for a while, some neighborhoods seemed to get new roofs, siding and gutters every few years. Premiums rose for everyone.

5. How you use the home

• Short-term rentals. If any part of the home is rented for less than 30 days, tell your agent. Many carriers avoid Airbnbs, but specialty carriers cover them. Hiding it can mean a denied claim, a cancelled policy and even premiums clawed back.
• Pets. Some dog breeds or any bite history must be disclosed. It doesn’t always mean a denial, but it can change your liability coverage.
• Trampolines and pools. Disclose them. Safety nets, in-ground trampolines, pool fences and locking covers help. Carriers send inspectors and increasingly use drones, so they’ll find out.
• Hot tubs. Disclose them too, especially if you want one covered.

Honesty really is the best policy here.

The takeaway

Before you buy, check flood maps, hydrant and fire station distance, roof age, wiring and heat sources, and get a real quote on that specific home. Want help? Reach out to our team, and use our affordability calculator with a realistic insurance number.