Building Homeownership Resilience
The Impact of Rising Insurance Costs on Minnesota Homeowners
For many Minnesotans, buying a home marks the beginning of stability. It’s where children grow up, neighbors build community, and families can build a more secure future.
But today, many homeowners are facing a challenge they didn’t expect: the rising cost and shrinking availability of home insurance.
As the 2026 legislative session continues, strengthening homeownership resilience will be one of our core advocacy priorities. Helping families buy homes is important, but we also need to ensure they can stay in those homes safely and affordably for the long term.
What Habitat Is Hearing Across Minnesota
Across our network of 24 Habitat offices, we’re hearing the same message: insurance costs are rising quickly, and coverage is becoming harder to find.
This past fall, Cristen Incitti, Habitat Minnesota’s President and CEO, testified before the Task Force on Homeowners and Commercial Property Insurance at the Minnesota Capitol to share what Habitat leaders and homeowners are experiencing.
“As premiums rise, some homeowners are being forced to choose inadequate coverage simply because those are the only policies they can afford,” Incitti told task force members. “That leaves families exposed to significant financial risk in the event of a disaster.”
In Greater Minnesota, Habitat offices report steep increases in premiums.
Lakes Area Habitat for Humanity, which serves Crow Wing, Wadena, Cass, and Hubbard counties, says renewal premiums on modest Habitat homes now commonly range from $1,400 to $2,800 per year, with deductibles between $1,000 and $5,000.
“Renewal statements for homeowner’s premiums no longer surprise us,” said Lakes Area Habitat Executive Director Kevin Pelkey. “In the last 12–24 months, premiums have consistently doubled and in some cases tripled.”
Some homeowners are also losing coverage entirely. Pelkey shared the story of one homeowner who was dropped by her insurer despite no inspection or claims. She eventually found new coverage, but at three times the previous premium.
In the Twin Cities metro area, the situation is just as serious. Twin Cities Habitat for Humanity reports that some homeowners are considering selling their homes because rising taxes and insurance costs are outweighing their mortgage savings. Even after loan modifications.
These stories make one thing clear: this is becoming a statewide challenge for new and longtime homeowners.
Why Are Insurance Costs High?
Several factors are driving higher home insurance costs, but one of the biggest factors is more frequent and severe weather events.
Minnesota has experienced an increase in severe storms. These events can cause significant damage to roofs, siding, windows, and foundations, leading to costly insurance claims.
As the number and severity of storms increase, insurance companies pay out more claims. To manage that risk, insurers may raise premiums across the market or reduce the number of policies they offer in certain areas.
A report from the Federal Reserve Bank of Minneapolis, “Homeowners Insurance Costs Are Growing Fast, but Coverage Is Shrinking,” found that Midwestern states like Minnesota, where strong winds, hail, and wildfire risks are increasing, have seen some of the fastest growth in homeowners insurance costs.
For homeowners, that can mean higher premiums, larger deductibles, fewer coverage options, or all three.
Habitat’s Advocacy for Solutions
Habitat for Humanity of Minnesota is working with policymakers to address the growing home insurance challenge.
By bringing homeowner stories directly to policymakers, Habitat is helping ensure that working families and rural communities are part of the conversation.
The Task Force on Homeowners and Commercial Property Insurance considered several possible solutions, including prohibiting the use of credit scores in insurance rating, restructuring the Minnesota FAIR Plan, and funding for improving existing housing units.
A promising solution is investing in stronger, more resilient homes.
Strengthen Minnesota Homes Program, passed in 2023 but still unfunded, would provide grants to help homeowners fortify their homes against storm damage. In partnership with MCCD, Habitat Minnesota is advocating to fund this program and ensure it reaches low- and moderate-income homeowners.
Some Habitat offices are already piloting these ideas. Habitat for Humanity serving Winona County is installing FORTIFIED roofs, designed to better withstand severe storms and reduce damage, helping homes stay safer and potentially more affordable to insure.
Other states have seen strong results from similar efforts. In Alabama, partnerships between Habitat organizations and state agencies have helped thousands of homeowners strengthen their homes and improve long-term affordability.
Protecting the Promise of Homeownership
Homeownership is one of the most powerful tools for building financial stability and strong communities. But that promise only holds if families can maintain their homes over time.
Rising insurance costs and limited coverage options are creating new challenges for homeowners across Minnesota.
Habitat for Humanity of Minnesota will continue working with lawmakers and partners to strengthen homeownership resilience.
Because building homes is only the beginning.
Ensuring families can stay in those homes securely and affordably for generations is just as important.
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📣 Learn more about Habitat Minnesota’s full 2026 Legislative Agenda on our recent blog: 2026 Legislative Session Is Underway – And We’re Starting with Home
📧 Stay up to date on housing and homeownership policy at the legislature by signing up for or our advocacy updates.
🎥 Watch Lakes Area Habitat for Humanity’s Executive Director Kevin Pelkey’s testimony.