A newly formed legislative task force is taking a closer look at the sharp rise in homeowners insurance costs across Minnesota.
The Task Force on Homeowners and Commercial Property Insurance, created by the Legislature earlier this year, is charged with delivering recommendations by February 2026, ahead of the next legislative session. While the group has met twice before, Wednesday’s meeting marked the first opportunity for public testimony from key stakeholders.
According to the Minnesota Realtors Association, insurance costs on a median-priced home have climbed by roughly $1,200 since 2019. The surge is attributed to several factors — including more frequent severe weather, higher labor expenses, and escalating material costs for repairs. Minnesota insurers suffered massive losses in 2022, when a series of destructive storms caused billions of dollars in damage in just one month.
Theressa Ruiz, a program manager with the housing nonprofit PRG, said many first-time homebuyers are facing sudden spikes in their insurance premiums. Some insurers, she noted, have even stopped offering coverage in Hennepin and Ramsey counties.
“First-time homebuyers, already struggling to afford what’s on the market, are now hit with higher premiums,” Ruiz said. “And the only way to lower them is often by taking on very high deductibles.”
The rising cost of insurance is also straining families who purchase homes through Habitat for Humanity.
Cristen Incitti, CEO of Habitat for Humanity Minnesota, said the combined pressure of increasing insurance rates and property taxes is undermining long-term housing affordability.
“We’re also seeing insurers drop coverage or stop writing policies in certain areas,” Incitti said. “When that happens, families are forced to find new insurance—usually at a much higher cost.”
Incitti urged lawmakers to support the Strengthen Minnesota Homes grant program, launched in 2023 to help homeowners afford stronger, storm-resistant roofs. Reducing storm damage, she said, could stabilize the insurance market and help bring premiums down over time.
However, the Minnesota Department of Commerce reports that the grant program has yet to begin. According to the agency’s website, “we do not yet have an estimate for a program launch date.”