Homebuyers slammed by 'ridiculously high' insurance costs amid mounting crisis: 'It's a tough situation all around'

Homeowners across Minnesota are facing steep increases in their homeowner insurance premiums, with some seeing their costs double or even triple. The cause of such massive increases? A rising number of severe weather events in the region.

What's happening?

A report by Realtor.com found the average homeowners insurance premium in Minnesota will rise by about 15% by the end of 2025, pushing the typical annual rate to more than $4,000. But local news station KSTP reports many residents are already experiencing much higher hikes, especially first-time or lower-income homeowners. 

New homeowner Noleene Counts told KSTP that she scrambled to find a policy she could afford before closing on her new home, settling on one just a day before her deadline.  

"It's still ridiculously high," Counts said of the policy.

KSTP reports soaring costs are largely driven by an uptick in severe weather events, which are tied to human-caused climate shifts and rising global temperatures. The news station reports that Minnesota saw 190 damaging hail events in 2024 alone. 

Due to so many damaging weather events in recent years, insurance companies have been losing more than they are collecting from current policies. In 2022, for example, insurers paid $1.92 in claims for every $1 collected in premiums, per KSTP. 

As storm damage becomes more frequent and expensive, companies are raising rates to keep up.

"It's a tough situation all around, because they were hit extremely hard financially," realtor Amanda Cox Zuppan told KSTP of insurance companies. "[There are] neighborhoods where every single house has a new roof — and somebody paid for those roofs."

Why are these rising insurance rates important to understand?

Realtor.com reported Minnesota homeowners face the fifth-highest percentage rise in homeowner insurance premiums in the United States. Other states facing higher percentage rises are Louisiana, California, Iowa, and Hawaiʻi.

Rising premiums aren't just a financial strain — they're a warning sign. Insurance companies base their rates on risk. When those rates spike, it signals that weather-related disasters are becoming more frequent, more intense, and more costly. In other words, the impacts of global pollution are starting to show up on homeowner bills.

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When premiums rise, more homeowners struggle to afford and obtain policies — especially in already vulnerable regions. This can leave families without a safety net when disaster strikes, turning an already devastating destruction into an unfathomable financial crisis. 

Entire communities could face slower disaster recoveries, reduced property values, and even displacement as insurance becomes harder to afford — or impossible to obtain at all.

What's being done about rising insurance rates due to severe weather?

Experts told KSTP that homeowners should consider shopping around for better rates if their current insurance becomes unaffordable. 

Programs like Strengthen Minnesota Homes, which offers discounts for homes built or upgraded to be more storm-resistant, were also recommended. Alternatively, some state-backed assistance programs are available to help homeowners cope with the growing cost of maintaining and insuring their properties.

Every planet-friendly action — from reducing plastic waste to choosing cleaner transportation — helps cut down on environmental pollution that drives volatile climate shifts. 

By making climate-minded choices, you can help slow the warming of the planet, which in turn helps reduce the conditions that make extreme weather more destructive and more likely to spike insurance rates in your area.

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