Home Insurance in Underwood, Minnesota
With a median home value of $187,500, Underwood is 31% lower than the Otter Tail County median.
The typical home in Underwood was built around 1962. About 49% of homes were built before 1960, about 22 points above Otter Tail County's 27%. Aging wiring, roofing and plumbing in older homes can push up the cost to insure or rebuild them.
Housing in Underwood breaks down to 88% single-family homes, 5% apartments in buildings with 5+ units and 3% mobile or manufactured homes.
In Underwood, about 70% of owner-occupied homes have a mortgage - lenders require hazard insurance on every mortgaged home.
The vacancy rate is 11%; vacant or unoccupied homes typically need a different coverage form than an owner-occupied policy. About 85% of occupied homes in Underwood are owner-occupied.
Homes heated with propane and fuel oil can carry added fire risk. Fuel-tank leaks and spills are often excluded from standard homeowners policies. 52% of homes in Underwood are primarily heated with propane.
Otter Tail County had 7 active NFIP flood policies as of September 2026. Its top FEMA-rated hazard is winter weather (Very High). See the full Otter Tail County home insurance overview for all FEMA hazard ratings and flood coverage details.
In Minnesota, the statewide average premium for a standard HO-3 homeowners policy is $1,988 per year (NAIC, 2023 data).
Key figures
| Median home value | $187,500 |
|---|---|
| Median year built | 1962 |
| Owner-occupied share | 85% |
| Share of owner-occupied homes with a mortgage | 70% |
| Top county hazard | Winter Weather (Very High) |
| Active NFIP policies in Otter Tail County | 7 |
| 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)