Short answer: In Minnesota, your landlord's policy doesn't cover your belongings or liability. Under Minn. Stat. §504B.178, security deposits earn 1% simple annual interest. Within three weeks after the tenancy ends, and after receiving your mailing address, the landlord must return the deposit with interest or give you a written statement of the specific reasons for keeping any of it. If you leave because the building was condemned through no fault of yours, the deadline is five days. Bad-faith retention can add up to $500 in punitive damages.
This guide is general information for Minnesota renters. It isn't legal advice, and local ordinances can add rules. Your lease and policy wording control.
Your landlord's policy covers the building, not your belongings or liability. A renters policy (HO-4) covers personal property, personal liability and loss of use; flood is generally excluded (see FloodSmart). Coverage basics: renters insurance. Roommates: whether renters insurance covers roommates. Liability: how much renters liability coverage you need.
Step 1: Interest
Under Minn. Stat. §504B.178, subd. 2, a deposit is held for you and earns simple, noncompounded interest of 1% a year.
Step 2: The three-week rule
Under subd. 3, the landlord must, within three weeks after the tenancy ends (or within five days if you leave due to legal condemnation not caused by you), and after receiving your mailing address or delivery instructions:
- return the deposit with interest, or
- give you a written statement of the specific reasons for withholding any part.
Mailing it first class by the deadline counts. Give your forwarding address in writing as soon as you know it.
Step 3: Bad-faith penalties
Under subd. 7, bad-faith retention can expose the landlord to punitive damages up to $500 per deposit, in addition to other damages under the statute. If the landlord fails to comply with the return requirements, retention is presumed to be in bad faith unless the deposit is returned within two weeks after you start a court action.
Step 4: Winter claims
Frozen pipes and ice dams are common Minnesota losses. Renters insurance typically covers your belongings for sudden water damage. Ask about sewer backup coverage, and note that flood is generally excluded; see FloodSmart.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Minnesota.
Frequently asked questions
Do Minnesota security deposits earn interest?
Yes, 1% simple annual interest, under Minn. Stat. §504B.178.
How long does a Minnesota landlord have to return my deposit?
Within three weeks after the tenancy ends and they receive your mailing address, or five days after a condemnation move not caused by you.
What must a Minnesota landlord provide if they keep part of the deposit?
A written statement of the specific reasons for withholding.
What's the bad-faith penalty in Minnesota?
Up to $500 in punitive damages per deposit, in addition to other damages.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.