Minnesota Residents Seeing Homeowners Insurance Skyrocket
At the time of this Minnesota homeowners insurance review, changing weather conditions have caused Minnesota homeowner's insurance rates to rise 10-12%. Minnesota homeowner's insurance companies claim that higher rates are needed to cover the extra damage from permanent weather changes, but it is yet to be seen if there is a corresponding increase in Minnesota homeowner's insurance claims.
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UPDATED: Mar 4, 2022
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Changing weather conditions in the State of Minnesota is forcing insurance carriers to raise the average cost of homeowners insurance policies. Many of these increases are reported in the neighborhood of 10-12%, which is a very large increase for a single year relatively to the national average.
Residents in Minnesota are becoming frustrated with their insurance companies, saying that these increases in insurance premiums are not justified, just because they are having a bad weather year. Many consumers are concerned that homeowners insurance rates will not go back down once the weather returns back to normal patterns. And they fear that the cheapest home insurance rates will no longer be made available to residents inside of the Twin Cities metro area or beyond.
Insurance companies are claiming that the change in weather is more permanent and that the higher rates are needed to provide liability coverage for the extra damage. In addition, they claim that material costs have been going up for the past few years, so the extra costs for repair has increased as well. In light of this, they are adjusting their average rates for the standard homeowners insurance policy.
Insurance firms are also changing the coverage allowed for some homeowners. For example, insurance companies usually offer replacement cost coverage for things like roofs, since a 20 year old roof is not worth that much. However, some homeowners are reporting they are only allowed to buy actual cash value policies, which means a damaged roof that needs to be replaced would not fully be paid for. Instead, the insurance company would pay up to the value of the roof at the time of the loss.