Home Insurance in Cottonwood, Minnesota
With a median home value of $176,200, Cottonwood is 12% lower than the Lyon County median.
The typical home in Cottonwood was built around 1973. Aging wiring, roofing and plumbing in older homes can push up the cost to insure or rebuild them. About 36% of homes were built before 1960, about 1 point above Lyon County's 34%.
The housing stock in Cottonwood is 80% single-family homes, 13% apartments in buildings with 5+ units and 5% mobile or manufactured homes. Mobile and manufactured homes typically need a manufactured-home (HO-7) policy rather than a standard homeowners policy.
About 52% of owner-occupied homes in Cottonwood have a mortgage. Lenders require hazard (homeowners) insurance on any home carrying a mortgage.
The vacancy rate is 10%; vacant or unoccupied homes typically need a different coverage form than an owner-occupied policy. About 78% of occupied homes in Cottonwood are owner-occupied.
Most homes in Cottonwood - 62% - are primarily heated with natural gas.
Lyon County's top FEMA-rated hazard is winter weather (Relatively High), per FEMA's National Risk Index. Lyon County had 30 active NFIP flood policies as of September 2026. See the full Lyon County home insurance overview for all FEMA hazard ratings and flood coverage details.
The statewide average premium for a standard HO-3 homeowners policy in Minnesota is $1,988 per year, according to the NAIC homeowners insurance report (2023 data).
Key figures
| Median home value | $176,200 |
|---|---|
| Median year built | 1973 |
| Owner-occupied share | 78% |
| Share of owner-occupied homes with a mortgage | 52% |
| Top county hazard | Winter Weather (Relatively High) |
| Active NFIP policies in Lyon County | 30 |
| Home insurance premium | $1,988 - statewide average (NAIC, 2023 data) |
Nearby towns
Sources
Data last updated: 2026-09-29
- U.S. Census Bureau Gazetteer Files (2024)
- U.S. Census Bureau, American Community Survey 2020-2024 5-Year Estimates (2024)
- FEMA National Risk Index (December 2025)
- FEMA OpenFEMA NFIP Redacted Policies v3 (2026)
- NAIC Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owners Insurance: Data for 2023 (published 2026) (2023)