Independent research conducted by Dr. Bob Hartwig of the Insurance Information Institute confirms this alarming trend. Below is a summary of Dr. Hartwig’s findings recently presented at a November 1, 2011, summit attended by more than 120 people, representing 26 insurance companies, independent agents, regulators and legislators.

Dr. Hartwig’s full presentation is available at:  http://www.iii.org/presentations/homeowners-insurance-is-a-minnesota-meltdown-coming.html

In 2007, Minnesota had the second highest amount of catastrophe losses among all states that year (the latest year for which data is available) with $747-million in losses (second only to California’s $1.4-billion in primarily wildfire losses).

In 2008, Minnesota was third nationally in catastrophe losses with $1.5-billion behind Texas and Louisiana, which were stuck by hurricanes that year.

The data is not in for 2010, but it is highly likely that Minnesota will be another Top Three catastrophe loss state. And 2011 may not be much better.

The claims cost increases are primarily from the large amount of storm damage in Minnesota in the last five calendar years.  While 2011 saw only 30 tornadoes (out of about 550 total severe storm reports), Minnesota led the nation in tornado touchdowns in 2010 with 144. Before 2010, Minnesota saw an average of 44 tornadoes in a typical year.

In 2008, Minnesota’s loss ratio for homeowners insurance was 157.3, one of the worst on record.  Nationally the homeowner’s combined loss ratio is estimated to be 115.0, seventh highest in the last two decades.

Minnesota is now the 14th most expensive state for average homeowners’ insurance premiums ($845), up almost 225% since 1998 ($345).

2. Do not burn wrapping paper or Christmas tree limbs in the fireplace. They burn very quickly, throwing off sparks and

possibly causing the creosote that has previously accumulated in the chimney to ignite.

3. Always use a screen in front of the fireplace. Also consider using a fire-resistant carpet or mat (made for fireplaces) on

the floor in front of the fireplace.

4. Use your space heaters wiselya.

Clear a 3-foot area around space heaters.

b. Unplug space heater when not in use.

c. Purchase a space heater that will automatically shut off if it falls.

d. Plug electric portable space heaters directly into wall sockets, not into an extension cord.

5. Do not put comforters, bedspreads, or anything else on top of an electric blanket while it is turned on. Do not tuck your

electric blanket into your mattress.

6. Review your fire escape plan with your family.

7. Be sure every level of your home has a working smoke alarm. Inspect and clean dust from the covers of your smoke

and carbon monoxide alarms each month.

8. Avoid using lighted candles altogether. Try safer alternatives such as battery-powered candles. Never leave a burning

candle unattended and don’t let candles burn completely.

9. Do not connect more than 3 strands of holiday lights together and check to make sure there are no tears in the coating or

exposed wires.

10. Water a real tree to keep it fresh, green, and full of needles. Dried-out trees can easily catch fire. If purchasing an

artificial tree, find one that is fire resistant.