Updated:
Original:

Minnesota insurance rate hikes highest in nation for first-time claimants

Author:

Minnesotans who make a first-time insurance claim on their homeowner's policy will see their premiums jump by an average of 21 percent. If that seems like a lot, it is. The Business Journal reports Minnesota homeowners see the highest such increase in the nation--and you can blame Mother Nature for it.

The Business Journal cites an industry report compiled by InsuranceQuotes.com, which commissioned a study by six large insurance companies to review rates after claims. The report found the national average increase was 9 percent.

Mark Kulda, spokesman for the Insurance Federation of Minnesota, said there has been more than a 250 percent increase in premium costs in Minnesota between 1998 and 2010. The average annual premium is $961, well above the national average.

“We can thank natural disasters for that,” Kulda said, citing the unprecedented uptick in claims from weather-related events. In 1998, Minnesota insurers experienced $1.5 billion in storm losses—more than the previous 40 years combined. In 2010, 144 tornadoes touched down in the state, more than three times its annual average.

The study’s findings come as most U.S. families are experiencing an increase in their homeowner policy premiums. According to data from the National Association of Insurance Commissioners (NAIC), the average cost of home insurance increased 36 percent between 2003 and 2010.

Next Up

Anthony Edwards

Timberwolves smash Rockets in season opener

The Timberwolves showed they have plenty of firepower in a victory over Houston.

Knuth - Nezhad - side by side

Frey challengers Knuth, Nezhad agree to rank each other 2nd

They're urging supporters to do the same on Nov. 2.

Jerome Horton - Sherburne Co. Jail - CROP

Charges: Man lied to buy gun later used by St. Paul mass shooting suspect

He's accused of making false statements during the purchase of a firearm.

Screen Shot 2021-06-04 at 6.30.24 AM

BCA releases investigative file in Winston Smith's shooting death

The file contains 1,000 pages of documents, hundreds of photos and dozens of audio files.

Slice

Fire at Mpls. pizza joint weeks after opening, owners suspect arson

The owners arrived at work Tuesday to find the building on fire.

vaccine, covid

New COVID charts show hospitalization, death rates based on vaccine status

The unvaccinated are far more likely than the fully vaccinated to become hospitalized or die.

Flickr - Superior National Forest Boundary Waters

White House begins process to ban new mining near BWCAW

The stated goal is to protect the "unique natural wonder" of the BWCAW.

Autumn Merrick, Autumn Rose Merrick

Man charged in shootout, crash that killed 18-year-old on scooter

Autumn Rose Merrick was with a friend near the Holiday gas station.

Related