Landlord Insurance Minnesota

Last updated: May 28, 2025

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"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett

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Landlord insurance in Minnesota is a specialized insurance solution designed for property owners who rent out residential or commercial properties within the Land of 10,000 Lakes. Whether you own a single rental in Minneapolis or manage multiple units across St. Paul, Duluth, or Rochester, landlord insurance Minnesota is essential to protect your investment and handle risks unique to the state.

Unlike standard homeowners insurance, landlord insurance policies in Minnesota address the specific challenges landlords face, including tenant-related liabilities and weather hazards common in the region, such as severe winter storms, heavy snowfalls, and flooding.

Minnesota landlords have witnessed rising insurance premiums in recent years, impacting profitability and cash flow. Our analysis of thousands of landlord insurance Minnesota policies shows many property owners overpay by up to 25%, often because they work with agents unfamiliar with landlord insurance intricacies specific to Minnesota.

That’s why we developed the OfferMarket Insurance platform—to assist Minnesota landlords in swiftly comparing quotes from over 40 insurance providers. Our Minnesota-focused specialists thoroughly evaluate each offer to ensure you receive comprehensive protection at the best price, helping landlords across Minnesota save significantly.

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What Risks Does Landlord Insurance in Minnesota Cover?

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A thorough landlord insurance policy in Minnesota generally protects against:

🏠 Property damage caused by fire, winter storms, hail, vandalism, and other typical local risks
⚖️ Liability claims if someone is injured on your Minnesota rental property
💸 Loss of rental income if a covered event renders your property uninhabitable
🌊 Flood insurance (purchased separately if your rental is in a flood-prone Minnesota area)

Property Insurance

Minnesota landlords contend with weather-related challenges like heavy snow, ice storms, freezing temperatures, hail, and occasional tornadoes during summer months. The property insurance portion of your landlord insurance Minnesota policy covers these risks and may reimburse temporary housing costs if tenants must relocate during repairs.

Minnesota property insurance is commonly divided into three coverage forms—Basic, Broad, and Special—each addressing various “perils” (risks):

Basic Form Perils

The most cost-effective property insurance option for Minnesota landlords includes coverage for:

🔥 Fire
🌩️ Lightning
💥 Internal explosion

Extended Coverage (EC) Perils

In Minnesota, the mnemonic WHARVES is useful to recall extended coverage perils you can add to basic insurance:

🌬️ Windstorm (including tornadoes possible in southern Minnesota)
🦹‍♂️ Civil commotion
🔥 Smoke damage (not caused by fire but sudden damage)
🌨️ Hail (frequent in Minnesota’s weather)
✈️ Aircraft
🚗 Vehicle impact
💥 Explosion
❗ Riot

For vandalism-related risks, the acronym V&MM covers:

🏚️ Vandalism
🦹‍♂️ Malicious mischief

Broad Form Perils

Minnesota insurance agents use the acronym BIG AFFECT to remember additional broad form perils included alongside basic and extended coverage:

🥷 Burglary damage
🧊 Ice, sleet, snow (weight damage common in harsh Minnesota winters)
🪟 Glass breakage
🚰 Accidental discharge of water or steam
🧊 Freezing objects (important due to Minnesota’s frigid temperatures)
✈️ Falling objects
⚡ Electrical current damage
🏚️ Collapse
💥 Tearing asunder

Special Form Peril

The most comprehensive Minnesota landlord insurance coverage is known as “Special Form,” “open form,” or “DP-3” (often chosen for single-family rentals). This covers all risks of direct physical loss unless specifically excluded—always review your policy’s exclusions. Common exclusions in Minnesota policies include:

🌊 Flooding (requires separate flood insurance due to Minnesota’s flood zones near rivers and lakes)
🌎 Earthquake (rare but possible; added via endorsement)
🤡 Intentional damage
⚠️ Building code enforcement costs
🔌 Power interruptions off-premises
🇺🇸 Government seizure

General Liability Insurance

General liability insurance in Minnesota protects landlords against claims arising from injury or property damage suffered by tenants, visitors, or contractors on your rental property. Coverage limits typically range between $100,000 and $1,000,000 per occurrence.

For example, if a tenant slips on an icy walkway at your Minnesota rental and sues, your landlord insurance Minnesota policy’s liability coverage helps pay for medical and legal costs.

Business Interruption Insurance (Loss of Rent)

Minnesota landlords risk rental income loss if tenants must move out because of property damage. Business interruption insurance in your landlord insurance Minnesota policy helps cover lost rent, ensuring steady cash flow while repairs are underway.

This coverage is usually affordable in Minnesota, often around $1 per $1,000 of annual rental income.

Flood Insurance

Minnesota is home to many flood-prone areas, especially near the Mississippi River, Red River Valley, and numerous lakes. Flood insurance is crucial if your rental property is located in a FEMA-designated flood zone.

Minnesota lenders often require flood insurance coverage up to $250,000. Flood insurance is separate from your landlord insurance Minnesota policy and generally available through the National Flood Insurance Program (NFIP). You can check flood risk using FEMA’s Flood Map Service.

Landlord Insurance for DSCR Loans in Minnesota

If your Minnesota rental property is financed with a Debt Service Coverage Ratio (DSCR) loan, it’s important to understand lender insurance requirements. Minnesota landlords must obtain landlord insurance policies that comply with lender standards to qualify and secure loan approval.

Because insurance premiums affect your DSCR, selecting affordable yet comprehensive landlord insurance Minnesota policies is key to maintaining cash flow and loan eligibility. Typical DSCR lender requirements include:

Our OfferMarket Insurance platform helps Minnesota landlords meet DSCR loan insurance requirements by providing quotes tailored to lender criteria while minimizing expenses.

How Much Does Landlord Insurance Cost in Minnesota?

The price of landlord insurance in Minnesota depends on several important factors:

Location in Minnesota

Insurance companies factor in regional data when calculating premiums. For instance, properties near flood-prone areas along the Mississippi River in Minneapolis or low-lying parts of Duluth may have higher premiums than those in less flood-exposed regions like central Minnesota or western towns. Local labor and materials costs also impact repair expenses and insurance pricing.

Property Insurance Type

Minnesota landlords can choose among Basic Form, Broad Form, and Special Form coverage. Special Form typically offers the most extensive protection and is highly recommended for rental properties, though it comes at a higher price.

Dwelling Coverage Amount

The biggest factor influencing your Minnesota landlord insurance premium is the amount of dwelling coverage you buy. Insuring your property at full replacement cost value (RCV) is advised to avoid penalties like coinsurance.

Given Minnesota’s rising construction costs—especially after harsh winters—it’s critical to update your coverage limits regularly to reflect current replacement expenses.

Deductible

Choosing a higher deductible lowers your annual premium in Minnesota. Many landlords opt for deductibles of $5,000 or more to balance upfront costs with premium savings.

Claim Frequency and Severity in Minnesota

Minnesota insurers consider your personal claim history and the claims history associated with your rental property when determining premiums. Frequent or severe claims—such as water damage from frozen pipes during brutal winters or hail damage from summer storms—can increase rates or lead to coverage restrictions.

Crime Score Impact in Minnesota

Neighborhood crime levels, particularly in urban areas like Minneapolis, St. Paul, or Rochester, influence landlord insurance premiums in Minnesota. Higher crime rates generally correspond with increased risks of vandalism, theft, and liability claims, causing insurers to raise premiums or limit coverage.

Keep in mind that crime scores might not fully reflect security measures at your property. Installing security systems or hiring on-site management can help reduce your insurance costs.

Property Condition and Maintenance in Minnesota

Well-maintained properties in Minnesota’s challenging climate usually benefit from lower insurance premiums. Landlords should prioritize plumbing and HVAC upgrades to prevent common issues like frozen pipes and mold from Minnesota’s cold, damp conditions.

Older homes with outdated materials or structural issues often face higher insurance costs. Keeping records of maintenance and improvements positively affects your insurer’s evaluation and your policy terms.

How to Protect Your Rental Property in Minnesota

Landlord insurance Minnesota is vital for risk management, but proactive steps enhance your property’s protection:

Tenant Screening

Minnesota’s competitive rental markets—from Minneapolis to smaller communities like Mankato and Bemidji—require thorough tenant screening. Perform credit and background checks on all adult applicants, set clear criteria for acceptable scores, and consider higher deposits or personal guarantors if exceptions are made.

Regular Maintenance

Minnesota’s extreme seasonal changes demand careful upkeep. Inspect your rental quarterly to detect issues early—like roof damage from ice dams, basement flooding, or mold growth. Maintain detailed logs and share them with your insurer to qualify for possible premium discounts.

Tenant Maintenance Education

Educate your Minnesota tenants on essential upkeep, such as replacing furnace filters, shutting off the main water valve during freezing temperatures, and dripping faucets to prevent pipe bursts.

DP-3 Insurance in Minnesota

DP-3 policies, or Special Form coverage, are the standard for Minnesota rental properties. This coverage reimburses losses on a replacement cost basis and protects against most physical damage except policy exclusions.

What is Coinsurance?

Coinsurance clauses penalize Minnesota landlords who insure properties below a set percentage (usually 80%) of replacement cost value. Underinsuring means you pay a portion of the claim beyond your deductible.

Coinsurance formula

(Insurance Carried ÷ Insurance Required) × Loss = Claim Payment – Deductible

Example:
If your Minnesota rental’s replacement cost is $300,000 but you insure for only $150,000 with a $5,000 deductible, a $60,000 loss will be paid as:
($150,000 ÷ $300,000) × $60,000 = $30,000 - $5,000 = $25,000 from insurer.
You cover the remaining $35,000, illustrating the importance of insuring at full replacement cost.

Landlord Insurance Markets in Minnesota

No matter where your rental property lies—from the urban neighborhoods of Minneapolis to quieter towns in northern or southern Minnesota—we connect you with landlord insurance options tailored to your location.

Best Landlord Insurance in Minnesota

Minnesota landlords should seek policies that include:

• Comprehensive property insurance designed for Minnesota’s specific weather and risks

• General liability insurance protecting against tenant and visitor injuries

• Business interruption insurance to protect rental income

• Flood insurance if located in a flood zone

Working with agencies experienced in Minnesota landlord insurance that offer multiple carriers ensures the best coverage at competitive prices. Start your landlord insurance quote with OfferMarket Insurance today!

Landlord Insurance Guidelines for Minnesota DSCR Loans

These guidelines outline landlord insurance requirements to meet DSCR lender demands in Minnesota:

Property Coverage

Coverage Type	Requirement
Property Insurance	Mandatory, AM Best Rating A- VIII or higher, 1-year term
Limits	80% of replacement cost or loan amount, whichever is higher
Deductible	$5,000
Policy Type	Special Form (Dwelling Fire or Commercial Property)
Cancellation Notice	30 days
Lender’s Designation	Mortgagee