Report: Minnesota’s home insurance rates rose 34% in 2025, the highest increase in the nation

Mar 19, 2026 | 3:54 pm ET

By Alyssa Chen

Minnesota’s home insurance rate rose 34% in 2025, the highest increase in the nation

Arcus roll cloud over farm land at the front of a storm in Luverne, Minnesota. Damage from storms is contributing to rising homeowner insurance costs in the state. (Photo by John Finney/Getty Images)

Home insurance rates in Minnesota increased 34% in 2025, the largest increase of any state, according to a report released Wednesday by insurance comparison website Insurify. The increase of nearly $900 has brought the state’s average annual premium to $3,530 at the end of 2025.

The upside: a better financial year for Minnesota home insurers in 2024 could mean that homeowners see a smaller rate hike in 2026. Insurify, which projected a 15% increase in 2025 that ended up being much higher, projects an optimistic 4% increase in 2026.

The national average cost of home insurance was $2,948 in 2025. Florida has the costliest home insurance at an average annual premium of $8,292, driven by economic damages from hurricanes.

The U.S. had no hurricanes in 2025, in a first since 2015. Convective storms — thunderstorms, tornadoes and hailstorms among them — overtook hurricanes as the biggest driver of global insurer losses since 2000, according to the report.

In Minnesota, a hailstorm in 2022 with golfball-sized hail in some areas caused at least $2.6 billion in damages; a powerful 2023 thunderstorm resulted in at least $1.5 billion in damages from hail and wind.

Large hail could become more common as the climate warms: in 2024, Northern Illinois University researchers projected that warmer climates over the course of the century will melt smaller hailstones but also result in stronger updrafts producing larger hailstones.

More storm damage means more insurance claims filed, leading to losses for insurers and higher rates for consumers. Minnesota’s home insurance rates have gone from 21st in the country to ninth most expensive since 2023, Insurify reported, driven by billion-dollar windstorms and hailstorms in 2022 and 2023; Minnesota was one of five states where insurers lost money on policies in those years, according to data from credit rating agency A.M. Best reported by the New York Times.

Rates since 2023 have risen the fastest in central and mountain U.S. states, Insurify reported — Minnesota, Colorado and Iowa all saw increases of at least 50% from 2023 to 2025, indicating that damage from severe weather isn’t limited to the coasts.