More Extreme Weather Driving Increased Homeowners Insurance Premiums, Industry Official Tells Minn. House Panel

By Caroline Cummings, CBS Minnesota

February 9, 2023

Minnesota homeowners insurance premiums have soared by nearly 400% in the last two decades as destructive weather events become more common, an industry official told a House panel Wednesday.

In 1998, the average annual cost to have a home insured in Minnesota was $368, but that increased to $1,433 in 2019. That's 14th highest rate in the county, said Mark Kulda, vice president of public affairs at the Insurance Federation of Minnesota, a trade association.

"Back in 1998, the trend for homeowners increases was generally the increased cost of the homes. Now it seems to be more driven by the fact that the homes are getting struck by more weather," he testified to lawmakers. "We are seeing a lot more storms and a lot more storm claims, which is why our premiums have gone up so high."

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