The national average for homeowners insurance premiums is expected to grow again for the fifth straight year, largely due to increasingly severe damage from thunderstorms, hail, tornadoes, and other extreme weather events.
The Midwest and Great Plains states have seen some of the steepest increases, with the average price for home insurance in Minnesota rising 34% last year alone, the highest in the country.
Since 2023, Minnesota’s rates have jumped 64%, with the most costly risks being hail and high winds.
What this means is that some homebuyers have been shocked to learn what their insurance rates will be as they finalize their mortgage approval. In some instances it has raised monthly payments to the point where buyers can no longer afford the home they were hoping to buy.
And it is not just houses. If you are buying a townhouse or condo with an HOA, as associations try to creatively deal with increasing insurance costs make sure your HO6 insurance coverage is adequate. HOA insurance changes could lead to inability to buy or sell units
Don’t neglect talking to your insurance agent about what your insurance costs will be… if you are purchasing with a mortgage, you won’t be able to close without it!
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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