July 11, 2025 | Mark Luis Foster

Ruh Roh! From Realtor.com comes the news that Minnesota could be faced with a 15% increase in homeowner insurance rates in 2026. Of course, the report focuses on averages for all homeowners, not just HOAs or non-HOA properties.  If you live in an HOA, you’ve likely already seen a substantial increase in rates over the past five years, all due to hail damage here and storm-related damage in other states.

From Realtor.com:

The study projects the annual cost of home insurance will increase by 8%, to a national average of $3,520, by the end of the year, and the typical homeowners will see their costs rise an estimated $261 over the next 12 months.

A quote from explains Joel Berner, senior economist at the Realtor.com firm indicates the environmental proximity to storms is what drives this:

“Areas that are more sensitive to climate risks will naturally experience sharper insurance increases, but even less disaster-prone areas will see insurance premiums rise simply due to the fact that repairs have become more costly,” explains Joel Berner, senior economist at Realtor.com®. Labor and material costs continue to grow, which puts insurers in a position where they have to pay out more for full-replacement claims and therefore have to charge higher premiums.”

The chart they published in their report indicates that Minnesota is projected to be the fifth most expensive homeowner-insurance-rate state when ranked by increases, with an average annual cost of $3,524 today. In 2026, the prediction is rates will increase by $534 to $4,058 per year.   Yay. We’re Number Five.

Florida continues to outpace every other state, with insurance making it nearly impossible to live down there.

Florida remains the most expensive state for home insurance premiums—with the average yearly rate of $14,140 in 2024. The average annual cost in the Sunshine State is expected to rise to $15,460 by the end of the year—that’s a 9% increase. Hialeah has the highest projected average cost of any U.S. city: $26,693.

It’s not comforting that Minnesota is just a few slots behind Florida.

Predictably, five of the most expensive states paying the highest home insurance premiums are along the Gulf Coast. According to the report, hurricanes are the leading factor contributing to property damage.

Read the whole report HERE.