How Much Is Flood Insurance in Minnesota and When Do You Need It?
The average cost of flood insurance in Minnesota is $958 per year for a policy through the National Flood Insurance Program (NFIP).
Flood insurance is usually required by your mortgage company if your home is in a place that's likely to flood, called a special flood hazard area (SFHA). Homeowners insurance doesn't cover flooding, so you'll need to buy flood insurance if you want protection against damage from floodwater.
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How much does flood insurance cost in Minnesota?
The average flood insurance policy in Minnesota costs $958 per year for about $259,000 of coverage.
However, flood insurance rates are typically much more expensive if you're in a higher-risk area. In Minnesota, flood insurance rates range from around $100 per year to more than $2,000, depending on where you live.
Cost of flood insurance in MN by city
City | Avg. annual cost |
|---|---|
| Ada | $880 |
| Adams | $592 |
| Adrian | $343 |
| Afton | $1,142 |
| Aitkin | $694 |
On average, homeowners in Minnesota pay $227 per year more for flood insurance than people living in other states. Nationwide, Americans pay an average of $731 per year for NFIP flood insurance.
When is flood insurance required in Minnesota?
Flood insurance coverage isn't a legal requirement in Minnesota. But people who live in a high-risk flood zone designated by the Federal Emergency Management Agency (FEMA) usually need flood insurance if they have a mortgage. That's because mortgage companies typically require flood insurance if your home is more likely to flood.
Standard homeowners insurance doesn't include protection against flooding.
If you're worried about floodwaters damaging your home, you'll need to buy a separate policy. For example, people living near a large lake or body of water, like Lake Superior, Lake of the Woods or Red Lake, should consider having flood insurance to make sure they're protected from flooding.
The amount of flood insurance coverage you need will depend on:
- How much you still owe on your mortgage
- How much it would cost to rebuild your home
- How much personal property you have to protect
A policy from the National Flood Insurance Program (NFIP) will only cover up to $250,000 of damage to the structure of your home. If your home would cost more than $250,000 to rebuild, you should consider buying flood insurance from a private company.
Flood insurance rate maps for Minnesota
Minnesota homeowners can look at FEMA's flood insurance rate maps to find out which flood zone their home is in.
Looking up your address will show your zone, along with that zone's letter designation. NFIP flood insurance is usually required if your home is in a zone that starts with A or V. Zones that include a B, C or X are places where NFIP insurance is available but optional.
According to the Minnesota Department of Natural Resources, 95% of all Minnesotans live in communities that participate in the NFIP. Even if flood insurance is not mandatory for your zone, chances are that NFIP insurance is available in your area.
Flood insurance companies in Minnesota
Minnesota homeowners can buy a flood insurance policy from the National Flood Insurance Program (NFIP) or get coverage from a private insurance company.
Many homeowners insurance companies also sell NFIP flood insurance. These policies cost the same amount, no matter where you buy them.
If you're considering an NFIP policy, you should see if your current home insurance company offers it.
Having your home and flood insurance policies with the same company will make your life a lot easier if you have to make a claim.
Largest Minnesota insurance companies that offer NFIP coverage
Company | Market share |
|---|---|
| Auto-Owners | 31% |
| Assurant | 13% |
| American Family | 9% |
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NFIP policies are backed by the government and may be your only option if you live in a very high-risk flood zone. But they offer a limited amount of coverage, so they're not the best choice if you need more than $250,000 of dwelling coverage or $100,000 of personal property coverage.
Homeowners who need more coverage than the NFIP provides should compare quotes from private flood insurance companies.
Private companies give you more ways to customize your protection, and they tend to be cheaper than the NFIP. But private companies might not offer you coverage if you live in an area with a high risk of flooding, like on the coast or near a river.
Largest private Minnesota flood insurance companies
Company | Market share |
|---|---|
| Zurich | 21% |
| AIG | 12% |
| Liberty Mutual | 10% |
Frequently asked questions
Is Minnesota prone to flooding?
Minnesota doesn't have widespread flooding from major disasters like hurricanes. But homeowners across the state may experience flooding from snowmelt and heavy rains, which cause flash floods.
This type of flooding is more likely to occur outside of high-risk flood areas. For that reason, it's important for Minnesotans to protect their home with flood insurance.
How much is flood insurance in Minnesota?
The average flood insurance policy in Minnesota costs $958 per year for $259,529 of coverage from the National Flood Insurance Program (NFIP). That's $227 more per year than the national average.
Which companies offer flood insurance in Minnesota?
Homeowners in Minnesota can buy a National Flood Insurance Program (NFIP) policy from most major companies. That includes some of the best home insurance companies in Minnesota, like American Family, Farmers and Allstate.
Methodology
To find the average cost of flood insurance in Minnesota, ValuePenguin studied data published by the National Flood Insurance Program (NFIP).
Market share information for the largest flood insurance companies in MN was provided by S&P Global, a financial data resource for the insurance industry.