Minnesota Homeowners Report Surge in Insurance Complaints

Minnesota homeowners insurance complaints rose 108% from 2020 to 2023, with of those complaints from homeowners concerned their claims were denied or they faced high out-of-pocket costs after damage from wind and hail.

The Minnesota Department of Commerce (DOC) shared that homeowners reported 1,185 complaints in 2023, up from 569 in 2020.

DOC said some insurance carriers now have exclusions that narrow coverage or require significantly higher deductibles for wind and hail damage, and homeowners are not aware of the changes to their policy until after they file a claim.

DOC advises homeowners to look for any changes that may take effect during their next insurance renewal.

“To avoid surprises after you submit a claim, be aware of possible changes to your homeowner insurance coverage” said Commerce Deputy Commissioner of Insurance Julia Dreier. “As Minnesota experiences more effects of our changing climate, with more extreme weather events such as hailstorms and windstorms, insurance costs are going to increase, and we want Minnesotans to be prepared.”

Homeowners and auto insurance rates have risen in Minnesota in recent years. More extreme weather events that damage property and high inflation have led to higher costs for insurers.

Several insurance policies now include a separate, higher deductible for hail and wind damage, DOC said. As insurers require some homeowners to take on higher deductibles, DOC encourages homeowners to consider the math of what they can afford.

“Two percent may sound affordable,” Dreier said, “but it could easily wind up being a significant expense and lead to sticker shock given the value of a typical home in Minnesota.”

Source: DOC

Topics Homeowners