Why does my Minnesota home insurance keep increasing?

Feb. 12, 2011 - PRLog -- Minnesota home insurance is on the rise again in the North Star State.  The major influence is the weather related losses.  Storm activity and the fact consumers have become seasoned to expect a new roof, new matching siding every time it hails only adds to the staggering overall costs. Unfortunately, insurance can only go up when Minnesota insurance companies payout more than they take in.  In recent years many carriers paid out $1.40 –$ 1.86 for every $1.00 they took in.  Minnesotan’s will see increases ranging from 5% - 30%.  We have received many calls from prospects talking about their big named companies, you know the names, jumping the cost by 30%.  This happened back in 1998 and 1999 too and what was once a $300 annual premium is now $1,000+.  

What are some of the reasons you might see an increase on your Minnesota home insurance?

1)   Rate increase due to storm related losses in general – Companies have paid millions…
2)   Perhaps a discount fell off such as multi-policy or membership.
3)   Home owner insurance policies have inflation guards built in.  Each year your home automatically increases by 3-4% for inflation.
4)   Home policies have discounts for new homes.  Each year your home gets older 2% of the discount falls off.
5)   An inspection of your property warrants an increase in your building value.

How do you save money on your Minnesota home insurance?

1)   Multi-policy discounts – Insure your auto with the same company
2)   Maintain a good credit score
3)   Increased deductible
4)   Use an independent agent (like me) who works with multiple companies and shops & compares.
5)   Central alarms for fire and burglar, not to mention dead bolt locks, smoke detectors and fire extinguishers.
6)   Reduce your coverage
7)   Group discounts
8)   Membership Discounts
9)   Don’t confuse market value with replacement or rebuilding costs. Insurance for your home and not the land.
10)    Some carriers offer discounts for retired or folks over age 55
11)    Staying with the same Minnesota insurance company can sometimes offer longevity credits.
12)   Make sure your home is insurance correctly and not over insured. Review all coverage’s with your agent to make sure you are not buying things you don’t need and that you have what you do need.
13)   When you are in the process of purchasing a home take into consideration age, construction, location of fire departments, fire hydrants within 1000 feet, flood zone.  
14)   Pay premiums electronically or annually.

My name is Rick McIntosh, President of Insuring Minnesota.  We are an independent insurance agency located in Lakeville, Minnesota.  I hope our opinions above will help you make some better choices and save money on your MN home owner insurance.  If you would like a second opinion and a Minnesota home insurance quote, just give us a call at 952-469-0425 or complete our super easy secure online quote from.  It only takes 2-3 minutes.  https://www.insuringminnesota.com/home.html

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Rick McIntosh is the President of Insuring Minnesota, located in Lakeville MN. Insuring Minnesota is an independent insurance agency offering quotes from multiple carriers. Mr. McIntosh is a Certified Insurance Counselor.