Minnesota Homeowners Insurance Guide
Because of the way laws come into being, many state laws regarding homeowners insurance
share much in common with those of other states. But each state has its own specific
homeowners insurance laws, and concerns. In Minnesota, for example, it isn’t called
homeowners insurance at all, but rather home insurance. And because Minnesota is known not
only as the North Star State but as the Land of 10,000 Lakes, flood insurance is carried by a
great many homeowners here.
With dramatic changes from season to season, anyone who owns a home in Minnesota should
carry a level of coverage which leaves you not only feeling secure, but which will protect most
consumers’ largest investment: your home. You should seek coverage that provides your home
with more than the minimum industry standards. Think of the minimums offered by an insurer as
little more than a place to start: protecting your residence and your way of life are worth the best
level of coverage you can afford, especially in a state with so much seasonal weather.
Minnesota Home Insurance Laws
In the North Star State, you have many choices in the kinds of coverage you may want to carry.
And if your home carries a mortgage, your lender will have specific insurance requirements which
you will need to follow to be in compliance with your mortgage agreement.
But in general, residential coverage falls into two general categories: Actual Cash Value coverage
and Replacement Cost coverage.
Actual Cash Value Coverage
Actual Case Value Coverage pays the fair market value of the dwelling up to a contracted policy
limit, minus the deductible. The way the fair market value is determined is by an appraisal based
on comparisons to other homes of a similar nature, minus the value of the land on which the
home is built. Coverage for homes under actual cash value coverage policies are limited to a
specific amount, regardless of appreciation in value of the home.
Replacement Cost Coverage
Replacement Cost coverage can be more expensive up front than Actual Cash Value policies, but
they also often result in payments more in line with homeowner’s expected payouts, also minus
the stated policy deductible. The intention here is to cover whatever amount it may cost to replace
the home and its contents.
Additional Endorsements to Consider
Endorsements offer additional protection not included in the average home insurance policy.
Among them are:
• Personal Property
While most policies cover a certain level of personal property in a home, an endorsement
will allow a homeowner to ensure personal items to a higher level. This is especially
desirable for those with an in-home business.
• Additional Living Expense
Should your home be destroyed, this insurance lets you maintain your normal standard of
living.
• Flood Insurance
This is particularly important if your domicile is located in a floodplain.
• Renters Insurance
This insurance covers the loss of personal property and loss of use of the rental unit due
to fire and may include liability and medical payments coverage.
• Condo Insurance
This insurance covers personal property and improvements to the individual
condominium.
• Mobile Homes
A few companies offer this coverage for mobile homes used as a permanent residence.
Regardless of Minnesota’s minimums regarding home insurance, you would be wise to invest in a
policy that protects your investment. If you have more questions about how much coverage you
need or the ins and outs of insuring a home in Minnesota, you can review the official State of
Minnesota’s insurance guide for more detailed information. Or contact a Minnesota home
insurance professional.
Minnesota Car Insurance Guide
Driving a motor vehicle is a big responsibility. Every time you get behind the wheel of the car, you
are taking a risk of getting into an accident. For that reason, Minnesota requires that you carry a
minimum amount of insurance. Minnesota requires that you get liability, personal injury protection
insurance, under-insured motorist coverage, and uninsured motorist coverage. The failure to get
this amount of insurance could result in penalties and a criminal record.
Liability Requirements in Minnesota
You are required to get liability insurance in Minnesota. The law requires that you get $30,000 in
coverage for injuries that happen to one person, $60,000 in coverage for injuries that require to all
persons in an accident, and $10,000 in insurance to cover property damage. This insurance will
kick in if it is determined that you are at fault in an accident. Keep in mind that this is the minimum
amount of coverage that you need to get. A major accident could cause more property damage
and hospital bills than the minimum amount of insurance requires that you have. You might want
to get more coverage, especially if you have assets that someone else might want to sue for.
Personal Injury Protection Requirements
Minnesota requires that you get $40,000 in personal injury protection for each person in an
accident, $20,000 in coverage to cover medical expenses, and $20,000 to cover other expenses
that might be incurred after an accident, such as lost wages. This type of insurance will kick in
regardless of who is at fault.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist insurance are actually two separate entities, but they are
quite similar in Minnesota. For both of these types of insurance, you will need to obtain $25,000
to cover injuries to one person, and $50,000 of coverage for injuries that happen to two or more
people. If you are in an accident with someone who does not have insurance, or who does not
have enough insurance, this type of coverage will kick in after your personal injury protection has
been used up.
Other Insurance You Might Want
Although it is not required by the state of Minnesota, you may wish to obtain collision and
comprehensive insurance. If you have a car loan, your lender will probably require that you get
this insurance. Collision insurance will protect your vehicle if you hit another car, a tree, or
anything else. Comprehensive insurance will protect you if something happens to your car while
you are not driving it, such as fire, theft, or a tree falling on your car. Even if you don’t have an
auto loan, you may want to consider this type of insurance if you have a newer car that still has a
lot of value. If your car is twenty-five years old and is worth $1,000, this type of insurance may not
be cost effective, because you will only be covered by this insurance up to the total value of your
car.
Penalties for Not Being Insured
You are required to have insurance, and you are also required to carry proof of insurance in your
vehicle all of the time. If you get into an accident or get pulled over for any type of moving
violation, a police officer will probably ask to see your insurance information. If you aren’t able to
show it, or if you don’t have insurance, you can face penalties for not having insurance. It is a
misdemeanor to not have insurance on your vehicle. You may have to pay a fine that ranges from
between $250 and $1000, and you also might have to spend up to 90 days in jail. Your license
could be suspended or revoked. The second time you are caught driving without insurance in a
period of 10 years is considered a gross misdemeanor.
