Home Insurance

What are the Benefits of Home Insurance?

Home insurance is designed to help protect your Minnesota house from events that can cause damage or lead to the loss of possessions – such as fire and theft.

Home insurance can vary greatly depending on the type of policy you need and what you are interested in protecting. This is one reason it's essential to talk with an experienced insurance agent about your options and what your home policy should look like.

This type of insurance can also vary based on state and region since it's often affected by laws. Here are a few important things to know about Minnesota home insurance:

  • Homes cannot be insured for more than their replacement value : Minnesotan law specifically prohibits insuring a home for more than it would cost to replace that home – so people can't take advantage of insurance policies. Some policies offer what's called an "inflation guard" that can help adjust the policy if home values significantly increase over time.
  • There are low-cost options for certain kinds of belongings : Minnesota requires home insurance options that allow homeowners to reduce rates by lowering the coverage limits for certain parts of home insurance (typically divided into sections like "Coverage A, Coverage B, and so on). For example, if a policy has a section that covers structures beyond your house (like a shed), you can lower coverage limits below the standard level if you choose. The same is true of various other personal property. However, it's always smart to know the replacement value of this property through a professional assessment before you make these choices.
  • There are limits to how insurers can change rates : In Minnesota, rates can be changed, but there are limits. For example, a company cannot adjust insurance rates based on the location of a town, or where a house is in that town, or how old that home is. However, insurance companies can deny coverage in some cases, such as safety issues with old construction, inadequate fire protection, overcrowding, proximity to an "extraordinary" hazard, and other issues.

If you have any additional questions about homeowners' insurance or what a policy should look like, Up North Insurance Agency of Minnesota can help! Contact us to learn more and ask for a quote or other information.