Minneapolis and St. Paul are one market with two rule books. Minneapolis licenses every rental and inspects it by tier; St. Paul grades buildings from A to D and caps most rent increases at 3 percent a year. State law adds a 68-degree heat rule that no lease can waive. Send me the roof age, the boiler records, the tier or grade and the rent roll, and I can show the building to insurers the way they want to see it.
What makes a Twin Cities apartment building different
- HailThe August 11, 2023 storms dropped hail from ping-pong-ball to baseball size across the most heavily populated parts of the metro, including Minneapolis and St. Paul, according to the Minnesota State Climatology Office. Roof age and roof terms drive the property quote.
- WinterMinnesota law requires landlords to furnish heat of at least 68 degrees from October 1 through April 30. A failed boiler is a habitability problem and a frozen-pipe claim at the same time.
- Minneapolis rental licenseEvery rental property in Minneapolis must have a license, and the city assigns each building a tier that sets how often it is inspected.
- St. Paul certificate and rent capEvery residential building that is not owner-occupied needs a Fire Certificate of Occupancy, and the Rent Stabilization Ordinance limits most rent increases to 3 percent in a 12-month period.
Hail, wind and the roof
The State Climatology Office called the August 11, 2023 storms the most significantly damaging thunderstorms of that year in Minnesota. They left streaks of hail damage across Plymouth, Robbinsdale, Golden Valley, St. Louis Park, Edina, Minneapolis, Richfield and St. Paul, with extensive damage to rooftops, windows, siding and vehicles, and the event made NOAA’s list of billion-dollar weather disasters. The same office noted it came little more than a year after the intense hail storm of May 19, 2022.
That history is why the roof gets more attention here than almost anything else in the file. Before you compare prices, read three things in each quote:
- The wind and hail deductible. It may be a flat amount or a percentage of the building’s insured value, applied building by building. Ask for it as a figure in writing.
- How the roof is valued. Replacement cost and actual cash value pay very different amounts on a fifteen-year-old roof.
- Cosmetic damage wording. Some forms exclude dents to metal roofing and siding that do not let water in.
How hail roof claims work and Minnesota’s roof contractor rules.
Freeze, ice dams and the heat rule
Under Minnesota Statutes section 504B.161, every residential landlord covenants to keep the premises and common areas fit and in reasonable repair, to comply with health and safety laws, including rental licensing ordinances, and to furnish heat at a minimum of 68 degrees Fahrenheit in all places intended for habitation from October 1 through April 30, unless a utility company instructs that heat be reduced. Landlord and tenant may not waive or modify those covenants. Section 504B.381 separately lets a tenant petition the court for emergency relief over the loss of heat, running water, hot water or electricity when the landlord is responsible for providing them.
For insurance, that means the heating plant is both a property question and a liability question:
- Boilers: age, last service and whether there is a low-temperature alarm. Equipment breakdown coverage is what responds to a boiler failure that the property policy leaves out. How equipment breakdown works.
- Vacant units: property forms often condition freeze coverage on keeping heat on or draining the lines. Tell me how empty units are handled in January.
- Ice dams: the National Weather Service describes them as forming when snow on the roof melts by day and refreezes at night, until water works under the shingles and into ceilings and walls. Attic insulation, ventilation and roof raking are what underwriters want to hear about. Ice dam and snow load claims.
Rental license tiers and Fire C of O grades
Both cities publish an inspection result that tells an underwriter how the building is kept. A good one is worth sending before anyone asks.
- Minneapolis Tier 1Presumed well maintained and meeting the housing code. Routine rental license inspection every eight years.
- Minneapolis Tier 2One or more documented issues that may urgently affect renter safety and habitability. Inspected every five years.
- Minneapolis Tier 3Presumed not well maintained, with several such issues. Inspected every year.
- St. Paul Class A to DFire inspection violations are scored, and the score sets the class: Class A is inspected every six years, Class B every four, Class C every two and Class D every year.
Minneapolis bases the tier on code violations it found over the past two years, scored on 11 items: 0 to 19 points is Tier 1, 20 to 39 is Tier 2, and 40 or more is Tier 3. The city says it is working on changes to tiering for January 2028. In St. Paul, the common write-ups are the ones that also cause losses: missing smoke or carbon monoxide alarms, blocked egress windows, storage against a furnace or water heater, and extension cords used as wiring. Because the state covenant reaches licensing ordinances, a lapsed license or an open order can be used against you in a tenant injury claim.
Loss of rents and the St. Paul rent cap
Loss of rents coverage replaces the rent you were collecting while units are repaired after a covered loss. In St. Paul the rent roll you insure is shaped by ordinance. Voters approved the Rent Stabilization Ordinance in November 2021, and the City Council amended it in September 2022 and again in May 2025, with the latest change in effect since June 13, 2025.
- The cap: rent increases are limited to 3 percent in a 12-month period unless the city approves an exception based on a reasonable return on investment. Self-certification covers requests between 3 and 8 percent.
- New construction: properties whose first building certificate of occupancy was issued after December 31, 2004 are exempt, as are conversions to residential use after that date.
- After a just-cause vacancy: rent may go up by as much as 8 percent plus the Consumer Price Index, and the owner has to document the just cause.
Minnesota Statutes section 471.9996 bars cities from controlling private residential rents unless the measure is approved in a general election, which is how St. Paul’s came to be. On either side of the river, set the loss of rents limit from the actual rent roll and a repair period that includes a Minnesota winter, when exterior work slows. How income coverage works.
Flood, and when insurers say no
Flood is a separate policy. The National Flood Insurance Program says plainly that most business insurance does not cover flood damage, so a building near the Mississippi or Minnehaha Creek, or one with garden-level units, should have its own flood quote. How flood insurance works.
The Minnesota FAIR Plan, established in 1968, is for applicants who have been canceled, non-renewed or otherwise unable to get coverage in the private market; an owner with an offer from a standard insurer does not qualify. Its own site lists tenant-occupied dwellings and small commercial property among what it covers, with dwelling fire and commercial fire policies, and says its limit will not exceed the market value of the structures plus a reasonable amount for debris removal. By statute the plan does not provide commercial liability, and it may not decline a property because of its neighborhood. For most apartment buildings I treat it as a backstop for a small property, not a plan for the building, and I ask the plan about eligibility before anyone counts on it. FAIR Plans by state.
What to send me
- Address, year built, stories, unit count and construction type, with any commercial space on the ground floor.
- Roof by building: material, year installed, and any hail claim or repair since 2022.
- Heating: boiler or furnace age, service records, and how heat is kept on in vacant units.
- City record: the Minneapolis rental license and tier, or the St. Paul Fire Certificate of Occupancy and class, with any open orders.
- The current rent roll and a recent operating statement; for St. Paul, note whether the building is exempt as post-2004 construction.
- Current declarations pages for property, liability, umbrella and flood.
- Five years of loss runs, with what was repaired after each claim.
Common questions
Who insures apartment buildings in Minneapolis and St. Paul?
Admitted and surplus lines property insurers both write Twin Cities apartments, and which ones want yours depends mostly on roof age, heating, loss history and the city inspection record. I take the building to the ones that fit it.
Why did my apartment building insurance go up in Minneapolis?
Hail is a common reason. The August 2023 and May 2022 storms damaged roofs across the metro, so check whether your renewal changed the wind and hail deductible or how the roof is valued, not only the price.
Does my Minneapolis rental license tier affect insurance?
It can. The tier reflects code violations the city found over the past two years, and a Tier 1 record supports the case that the building is well kept, while Tier 3 invites questions.
Does apartment building insurance cover frozen pipes in Minnesota?
Usually, but many forms require that heat be maintained or the lines drained in vacant units. Read the freeze condition before winter, not after a loss.
Will loss of rents cover me under St. Paul rent stabilization?
Loss of rents replaces the rent you were actually collecting, so the limit should follow the real rent roll. The ordinance caps most increases at 3 percent in 12 months, with exceptions the city has to approve.
Do I need flood insurance on an apartment building in the Twin Cities?
Flood is excluded from the property policy and bought separately. Whether you need it depends on the flood map, the lender and how much of the building sits at or below grade.
Can the Minnesota FAIR Plan insure my apartment building?
Possibly, for a small building that the private market has turned down. The plan lists small commercial property among what it covers and does not provide commercial liability, so confirm eligibility with the plan first.
General information about insuring apartment buildings in Minneapolis and St. Paul as of November 2026, not legal advice. Rental licensing, Fire Certificate of Occupancy rules, the St. Paul Rent Stabilization Ordinance and Minnesota landlord-tenant statutes change; confirm your building’s status with Minneapolis Regulatory Services or the St. Paul Department of Safety and Inspections, and your obligations with counsel. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.