Why homeowners insurance premiums have spiked in Minnesota.

Minnesota home insurance premiums are going through the roof. A new report found they have jumped 55% in the past decade. WCCO's Derek James explains what's behind the growing expense and what lawmakers could do about it. For Minnesota homeowners, protecting their biggest investment is becoming increasingly expensive. A new report from the Insurance Federation of Minnesota finds average homeowners insurance premiums climbed from $1,313 in 2015 to $2,037 in 2023. And according to Julia Taliesin from Insurify, Minnesota has experienced the largest home insurance premium growth in the country Severe weather. Primarily hail and thunderstorms are definitely a main driver of the increase. There's not a disconnect. They're directly tied to the losses that insurers are paying out. And we've seen more significant storm activity and more importantly, more expensive damages that occur when these storms come through. Inflation, tariffs and higher labor costs are all making repairs more expensive. Those costs ultimately get passed along to homeowners through their premiums. There are several possible solutions, but experts say there's no single fix. For homeowners, that means shopping around, comparing coverage, discovering discounts, and making improvements to help roofs withstand hail and severe weather. For state lawmakers, this year's recommendations from Minnesota's Insurance Task Force include strengthening programs that help homeowners pay for those improvements. Updating building codes to require more weather-resistant construction and examining ways to expand coverage options for people who struggle to find insurance. But Cocking says keeping a competitive market is also key. I think the biggest thing is making sure that they don't overstep. Derek James, WCCO News. The report also found only 35% of Minnesotans understand their homeowners' policies, highlighting the importance of reviewing your coverage before disaster strikes.