Many Minnesota homeowners are experiencing a double whammy with their insurance bills, as both premiums and deductibles for wind and hail damage are on the rise.
Insurance costs rise for homeowners
What we know:
Homeowners in Minnesota are seeing their insurance premiums increase as much as 40%, with deductibles for wind and hail damage also rising significantly.
In some cases, deductibles have jumped from $1,500 to $5,000. In others, it changed from a fixed deductible to a percentage of the home’s value.
The rising costs are largely attributed to changing weather patterns and increased claims, as explained by Julia Dreier from the Minnesota Department of Commerce.
She noted that the industry has faced challenging years, leading to higher costs.
State Farm, one of the major insurance providers, has reported that for every dollar collected in Minnesota premiums over the past five years, it paid out $1.30 in claims and expenses.
Despite this, the company turned a record $5.3 billion profit last year.
Homeowners’ experiences:
Lauren McInerney from Minneapolis shared her shock at receiving a bill with a higher deductible.
Double whammy insurance shock for Minnesota homeowners
