It probably doesn’t come as a surprise to anyone that insurance rates are higher than others in certain parts of the country. For example, you would expect Florida homeowner with a property along the coastline to pay more than a family with a similar type of home in mainland Nebraska. The likelihood of natural disasters or other issues that could potentially damage a property lead to inflated insurance rates that are just a part of having a home in those at risk locations.

What may be surprising, though, is that residents of Minnesota are among the hardest hit in the country when it comes to homeowners insurance. The problem the residents of that state face is not necessarily in finding an affordable home insurance quote, but how hard they are hot once they make any kind of claim.

There is an expectation that your premiums will go up a little after a claim, but in Minnesota, that jump averages out at around 21.2%. That is a staggering number that makes many homeowners question whether or not a claim is actually their best financial option.

That is a rather alarming hike when you consider that the nationwide average sits at around 9% after the first claim is made. It is also in stark contrast to Texas, who actually instituted a law that does not allow insurance companies to put in an increase after a claim has been made. The question then becomes why Minnesota residents are being so unfairly treated by insurance companies, and the answer can actually be found in the number of claims that are made.

That number has been on the rise since 1998, with a large number of tornadoes and severe storms ripping through the state. The feeling is that the insurance companies are now trying to recover all the funds paid out during that period by tacking on huge increases after a claim has been made. Insurance specialists are now saying that it has gotten to the point where Minnesotans really need to look at the reasons for making a claim. The advice given is that claims should really only be made on catastrophic damages, rather than on things like a broken window or clogged gutter.

The insurance companies argue that much of the fault lies with the residents, many of whom get in the habit of making one claim after another. They say that a homeowner making weather related claim is incredibly likely to claim again and again after each new storm. There is probably some validity to both sides of the argument, with both having points that make sense. If you live in Minnesota and are concerned about rising insurance rates, your choices are simple: make the claim and take the hike, or resort to making simple repairs arounf the home on your own without the financial help of your policy holder.

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