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


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

Liam Robbins

Gophers stay perfect at home by crushing 7th-ranked Michigan

Liam Robbins and Marcus Carr were too much for the previously undefeated Wolverines.

police lights

Four teens arrested over robberies in Minneapolis

They teens were found in a vehicle that was taken during an earlier carjacking.

Boundary Waters/BWCA

All BWCA visitors will now have to watch three 'Leave No Trace' videos

Visitors left an "unacceptably high amount" of damage last year.


Ten fatal overdoses in past 6 weeks reported in region of northern MN

Law enforcement agencies have issued a plea to the general public.

u.s. district court minnesota - federal court minneapolis

Bracing for security threats, federal courthouses closing in Minnesota

Security is also being ramped up at the state capitol.

N95 mask

3M sues Florida company that sold 10K counterfeit N95 masks to HCMC

The Maplewood company has obtained a temporary injunction against the firm.

vaccine, covid

Walz, Whitmer, and Evers call on Trump Admin. to buy more vaccines

It comes after The Washington Post reported that the country's COVID vaccine reserves have been exhausted.

Karl-Anthony Towns

Wolves-Grizzlies game off, KAT tests postive for COVID

The Timberwolves star was among several players that are dealing with COVID-related issues.

minnesota state fair

Planning for the 2021 Minnesota State Fair is underway

The fair suffered huge financial losses due to COVID-19, but organizers are moving forward with planning "different scenarios" for this summer.