Minnesota Home Insurance Laws

No doubt about it, buying a home is a big decision, and navigating homeowner’s insurance laws can be overwhelming. By working with an insurance agency, you can lean on valuable knowledge to ensure you choose the right homeowner’s insurance policy from the right provider.

Familiarity With Your Community

There are several options available when buying homeowner’s insurance. You will likely receive several suggestions on how to go about protecting your investment. An insurance agency that knows your community and is familiar with your home’s exposure to hazards is a better alternative than buying directly from an insurance company that may not be aware of your needs. The agency has the ability to ensure you are being offered the best coverage at the best price.

Protect Your Financial Investment

The state of Minnesota has several laws relating to homeowner’s insurance that differ from other states. If you have a mortgage on your home, your lender will mandate that you carry a specific type of coverage to ensure you are compliant with the mortgage agreement. An agency will assess the financial aspect of your investment to ensure you are fully compliant with any applicable state laws.

Identify Your Risks

Due to extreme weather conditions, Minnesota residents are, particularly at risk. For example, Minnesota is known as the Land of 10,000 Lakes. For this reason, a reputable local insurance agency will know that a great deal of homeowners carries flood insurance and that most lenders require this level of coverage.

As a consumer, the cost of your homeowner’s insurance premium is likely a concern. Since premiums are based on the risk associated with the property being insured, an agency’s knowledge and ability to assess this risk and identify gaps in coverage is very valuable. This extensive knowledge and experience are often used as leverage to ensure that insurance companies remain honest in quoting their premium rates. Knowing your unique needs and where your risks lie, an insurance agency can assist with comparison shopping to help you get the coverage you need at a price you can afford.

Know the Law

Minnesota‘s law prevents insurance companies from adjusting rates based on several conditions. For example, if you have been denied coverage previously, the law protects you from being penalized with higher rates because of this. Working with an insurance agency that can help ensure you pay a premium that is based on what the law allows is an effective way to protect your investment.

Not only can insurance companies not adjust rates based on certain factors, but there are also other rules and regulations in place to avert homeowners from being denied coverage. When it comes to the age of a home, there are guidelines to follow. Insurance agencies are well-versed in these guidelines and know the conditions on which a homeowner may legally be denied coverage. For example, an older home with an updated electrical system and other specified systems couldn’t be denied based on the date of original construction.

There are multiple factors to consider, such as access to fire protection, present use, physical conditions, and the property’s proximity to other hazards that have to be taken into account when writing a homeowner’s policy. While the property has to meet reasonable underwriting standards, an insurance agency can help homeowners understand these risks and make sure that any denials are of legal value.

Protect from Cancellation and Non-Renewal

There are specific reasons that an insurance company may cancel a policy or refuse to renew a policy. An insurance agency can provide insight into the events surrounding such instances. Knowing ahead of time that failure to pay a premium or failing to pay property taxes for two or more years may result in no coverage can help prevent homeowners from losing their coverage. Misrepresentation of the property upon application for insurance and/or physical changes that increase the policyholder’s risks after the effective date are other reasons that a policy may be canceled.

Other reasons that an insurer may refuse to renew a policy at the end of its period include illegal activity taking place on the property or an increase in risk due to the violation of laws. Worth noting is that it is not always at the fault of the homeowner that a policy is not renewed. For example: In the event that there is a change in the availability or quality of fire protection services, this would meet the grounds for the insurer to refuse policy renewal. In addition, after two or more losses within a three-year period, a homeowner may be denied coverage. There are exceptions to this based on whether the loss was weather-related and the cost of the claim.

Ample Notification

There are specific timeframes that an insurance company must adhere to when notifying you of a policy cancellation. The notification must be in writing, and in some instances, two notifications are required. Insurance agencies are well aware of the laws regarding ample notification and homeowner’s rights in regard to cancellation, nonrenewal, and denial of coverage.

Extremely Loyal

There are many insurance companies to choose from and many policies to decide between, but an insurance agency can help educate and assist you in making well-informed decisions. Another huge advantage worth mentioning is that most insurance agencies’ loyalty lies with their customers and not the insurance companies. Their knowledge and contacts allows them to compare and contrast similar policies while finding the right homeowner policy for you.

If you’re looking for homeowner’s insurance, it’s of the utmost importance that you navigate Minnesota‘s home insurance laws. Smart investments come with smart protection, and it starts with leaning on an insurance agency to help you find the right policy.

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