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.”

In fact, roof-related damage made up more than a quarter of all residential insurance claims last year. The top culprits? Wind and hail, which were responsible for over half of those claims.

The condition of your roof matters more than ever. Homes with roofs rated in “moderate” to “poor” condition are hit with 60% higher repair costs after a loss. Alarmingly, about 38% of U.S. homes fall into that category.

Adding to the challenge, rebuilding costs for homes and businesses have surged more than 60% over the past 10 years. At the same time, homeowners are waiting longer to get their claims resolved. The average repair process now takes more than a month—32.4 days from filing to finished repairs, and 44 days from the first notice of damage to final payment, according to J.D. Power. Those are the longest delays ever recorded.

Insurance companies are also facing their own challenges. Many still rely on outdated roof inspection methods, like checking from ground level, which can miss hidden damage. That can lead to pricing that doesn’t match your actual risk—and fewer options when it comes to coverage.

Most U.S. homes (around 80%) have asphalt shingle roofs. Nearly 1 in 3 of those have less than four years of useful life left. States like West Virginia, Connecticut, New Jersey, and Massachusetts have the highest percentage of aging roofs.

Why does that matter? Roofs with less than four years of life left can suffer 50% more damage during severe weather compared to newer roofs with eight or more good years ahead.

Roof lifespan also varies by location. In hail-heavy states, the average roof lasts just 15 years. In contrast, homes in drier, less storm-prone states like Nevada, Arizona, and Utah see roof life stretch closer to 22 years. In some areas, roofs begin to fail in just 10 years.

The Bottom Line for Homeowners:
Now is a great time to inspect your roof—especially if it’s older or hasn’t been checked recently. A roof in good condition not only protects your home but can save you from major repair bills, insurance headaches, and long claim delays in the future.

This analysis, released by S&P Global Market Intelligence this week, is based on homeowners rate filings that were approved up until December 27, 2024, thus not encompassing the entirety of the previous year.

S&P GMI reports that the weighted national average effective rate increase for homeowners insurance was 10.4% last year, as of late December. In comparison, the figure for 2023 was 12.7%, resulting in a cumulative two-year average increase of approximately 24 percent.

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Home insurance premiums are anticipated to continue increasing until 2024 and beyond, partly due to the severe weather conditions experienced in various regions across the nation. Insurify’s data revealed a significant 20% spike in household insurance rates from 2021 to 2023, with an additional 6% rise expected by the end of this year.

Homeowners in Florida and Louisiana are facing the highest insurance rates nationwide, with projected increases of approximately 7% and 23% respectively over the upcoming year. Colorado State University’s latest hurricane forecast indicates that these states are among the top three most vulnerable to tropical cyclones during a La Niña phase.

Despite the fact that Florida, also known as the Sunshine State, has managed to avoid any major catastrophic disasters during the past few hurricane seasons, a significant number of insurance providers have decided to withdraw from the state. As a result, homeowners are now left with no choice but to depend on the state-run Citizens Property Insurance Corp. The average insurance rate in Florida is estimated to be around $11,000 per year. However, if the proposed rate increases are given the green light, this figure could potentially rise to approximately $12,000, as reported by Insurify. Insiders from the insurance industry suggest that the crisis cannot be solely attributed to extreme weather conditions.

The scarcity of insurance options in the third most populous state can be attributed to reinsurance, fraud, and a housing crisis. Alongside attempts to entice more insurers, various governmental suggestions have been proposed to alleviate the financial strain on homeowners with mortgages. Among the state’s coastal areas, six out of the top ten cities with the highest homeowners insurance costs can be found. Hialeah and Miami rank at the top of the list, reflecting the communities with the most expensive premiums.

New data indicates that prices for all goods increased by approximately 3% compared to last year. However, car insurance rates surged by a significant 20%.

Despite any positive developments in inflation, the topic of car insurance quickly brings about concerns. The rising premiums have been catching drivers off guard when it comes time to renew their coverage.

The expense of insuring and replacing vehicles became even higher for insurance companies due to the rise in auto thefts in certain cities.

Here are a few strategies that experts suggest for saving money:

– Qualifying for a low mileage discount by working from home
– Obtaining a better rate by bundling car and home insurance
– Reviewing your policy to potentially eliminate unnecessary coverage such as car rental insurance or towing insurance

Despite the financial challenges, experts emphasizes the importance of maintaining insurance coverage as driving without it is not only against the law but could also result in significant financial consequences.

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Maybe during a casual evening cooking hot dogs on the fire, a typical Minnesota thunderstorm starts rolling through and you think, “Gosh, good thing we have insurance.” That may be true, but do you know for sure what is covered?

Generally, if your cabin gets water damage because a tree crashes through a window, your damages will be covered. However if that same thunderstorm causes the nearby river to crest and your cabin becomes flooded, those damages will probably not be covered unless you have specifically purchased separate flood insurance.

What is that same thunderstorm causes the tree to crash through your roof, instead? Most folks would be correct in thinking that insurance would cover such damage. What you may not realize at the time, however, is what will be replaced. In this case, you can expect to be covered for the replacement of your roof, minus any depreciation. So if your roof costs $5000 to replace and is 10 years old, you will be reimbursed only a portion of that money. The exact number will be spelled out in your claim documents and by your claims adjuster.

What about frozen pipes? Given the extreme weather we have in Minnesota, frozen pipes can be quite a problem. Whether or not your insurance covers this varies from carrier to carrier. Generally, you can expect the damage to be covered if you have done regular maintenance on the pipes and kept them in good repair, and the event or disaster was not anticipated and could not be prevented by your actions. Every situation is different, so if you have the unfortunate experience of your pipes freezing, it is best to contact your insurance agent immediately to explain the circumstances so you know what your options will be.

Another point to remember: Make sure for you “toys” at the cabin, your boat, jet skis, canoes, etc. have the right amount of liability insurance in case of an accident.

Owning a cabin can be your little piece of tranquility. If you currently own a cabin, or are looking at purchasing one, give us a call and we can help you find the best coverage for your budget and answer any questions that you have.

Personalized Service
One of the most significant benefits of working with an independent insurance agent is the personalized service they provide. Unlike large insurance companies, independent agents have a more personal approach to their clients. They take the time to understand your unique needs, preferences, and budget, and help you find the best coverage that meets your specific requirements. They can offer you customized advice and solutions to protect your assets, family, and business.

One-Stop Shop
Another advantage of working with an independent insurance agent is that they are a one-stop-shop for all your insurance needs. They offer a wide range of insurance products, including auto, home, life, health, and business insurance. Rather than shopping around for different insurance policies from various providers, an independent agent can help you find the right coverage for all your needs under one roof.

Expert Advice
Independent insurance agents are insurance experts who are well-versed in the complexities of insurance policies, coverage options, and the ever-changing insurance industry. They can provide you with expert advice on how to reduce your risks, minimize your premiums, and make informed decisions about your insurance coverage. They can help you navigate the often-complicated insurance process and explain the details of your policy in a way that is easy to understand.

Better Prices
Independent insurance agents have access to multiple insurance carriers and can compare policies from various providers to help you get the best coverage at the best price. They can negotiate with insurance companies on your behalf to find discounts, special offers, and lower rates that you may not be able to access on your own. Additionally, they can advise you on ways to lower your premiums, such as by increasing your deductibles or bundling policies.

Ongoing Support
Finally, an independent insurance agent provides ongoing support to their clients. They will stay in touch with you to make sure your coverage remains up-to-date and adequate for your needs. They can help you file claims, answer questions, and provide guidance through the entire insurance process. Their goal is to build long-term relationships with their clients and ensure that they have the best possible protection for their assets, families, and businesses.

In conclusion, hiring an independent insurance agent has several benefits, including personalized service, one-stop-shop convenience, expert advice, better prices, and ongoing support. They can provide you with a customized insurance solution that meets your unique needs and budget. Whether you are looking for auto, home, life, health, or business insurance, an independent agent can help you find the right coverage to protect what matters most.

In 2022, Quadrant Information Systems reported that the average cost of a full-coverage auto policy in Wisconsin was $1,219. However, within just one year, that average has surged to $1,694, representing a significant increase of nearly 39%. This price escalation surpasses the increases observed in all but six other states in the United States.

While a portion of this increase can be attributed to national trends that have elevated the average car insurance rate by 16% across the country, Wisconsin has specific local factors that may have contributed to its higher-than-average rise.

Full coverage auto insurance policies encompass comprehensive coverage, which accounts for repair and replacement costs resulting from incidents other than collisions. Although the list of covered damages is extensive, many of these claims are associated with severe weather occurrences such as tornadoes, flooding, hail, and more.

The impact of severe weather events have become more frequent throughout the country, including in Wisconsin. The Wisconsin Office of the Commissioner of Insurance highlights that the state has witnessed an increase in intense and frequent heavy rains, leading to flooding, damaged roads and bridges, failed dams, injuries, and illnesses. Consequently, insurers in Wisconsin face a significantly higher likelihood of paying out on comprehensive claims.

Animal collisions, particularly with deer, contribute significantly to car insurance claims in various regions. Notably, Wisconsin experiences some of the highest rates of animal collisions in the nation. According to data from the Insurance Information Institute (III), drivers in Wisconsin have a one in 60 chance of filing a claim related to an animal collision. This statistic positions Wisconsin drivers as the fourth-most likely in the country to make such a claim, alongside motorists from Michigan.

In recent years, the surge in medical expenses has been a significant factor contributing to the rise in injury claims, which in turn has become a major expenditure for auto insurance providers. According to the U.S. Bureau of Labor Statistics (BLS), healthcare costs in the United States have witnessed a substantial increase of 31% between 2012 and 2022. Moreover, the escalation in medical costs has further intensified, with a notable 8.5% rise within a span of just three years from 2019 to 2022. Consequently, insurers are compelled to allocate higher payouts for injury-related claims, ultimately leading to increased premiums for drivers not only in Wisconsin but also in other regions.