North Dakota Property Insurance Rates Projected to Jump 26% by 2028

Drivers Behind the North Dakota Insurance Rate Projections

Insurance premiums across North Dakota are rising in part because the costs of labor and materials continue to climb. According to Godfread, higher labor and material expenses mean that the same storm produces more expensive damage that eventually does show up in consumer premiums. Despite these cost pressures, Godfread stated that North Dakota remains a “good risk” state for insurance providers due to predictable weather patterns and fewer potential losses.

The projected 26% increase applies broadly across commercial, residential, and multi-family business sectors rather than impacting every individual property owner identically. Godfread emphasized that the figures serve as a serious signal for the state to prioritize community resiliency alongside existing flood mitigation successes in Grand Forks, Fargo, Minot, and the Garrison Dam.

Building Code Enforcement and Community Resiliency

North Dakota maintains a statewide building code, but the state lacks a dedicated enforcement division to conduct inspections. Godfread explained that enforcement is generally left to local communities, raising questions about how much is being done. While the State Fire Marshal’s Office and local fire departments conduct fire inspections, they do not examine construction materials or whether the structures are up to code.

Construction contractors are typically responsible for ensuring new buildings adhere to building codes. Godfread noted that his office and insurance carriers typically discover a problem with a structure only after a catastrophic loss or collapse occurs. He suggested that the state needs to start investing in inspections to ensure safe buildings for citizens and to give insurers greater confidence when determining rates.

Real Estate and Agricultural Policy Impacts

Homebuyers in the state may not be pricing in the increasing insurance rates when they are shopping for a home, according to Jill Beck, CEO of the North Dakota Association of Realtors. Beck also highlighted concerns regarding older roofs, noting that some buyers are not able to acquire mortgages or insurance for some homes with dated roofs. She emphasized the need for education with homesellers about the age of their roof.

For the agricultural sector, Brad Nold, chief claims officer for the North Dakota Farmers Union, advised that cheaper insurance plans may not cover everything that farmers need to be fully insured. Nold recommended that farmers consult licensed insurance agents to shop around, compare plans, and understand everything that is in their policy rather than purchasing coverage based strictly on price. Farmers may also evaluate whether to insure older outbuildings as a way to keep costs down.