Best cheap homeowners insurance in Detroit

Detroit homeowners pay an average of $1,557 per year for home insurance with $250,000 in dwelling coverage. That’s slightly more than the national average of $1,428 per year for the same coverage. While home insurance in Detroit isn’t much higher than the average, understanding how to find cheap home insurance in Detroit could be important for your budget. Bankrate’s insurance editorial team analyzed the largest home insurance companies in the city to help you find the most affordable options. Based on our research, the cheapest homeowners insurance carriers in Detroit are Auto-Owners, USAA and Hastings Mutual.

Best cheap home insurance companies Detroit

Detroit has no shortage of home insurers, but not all of them offer cheap home insurance. To come up with the five best home insurance companies offering cheap coverage for Detroit residents, Bankrate compared the major insurers in the city based on average annual premiums provided by Quadrant Information Services.

To help ensure you also find a quality company, we also reviewed third-party ratings from J.D. Power and AM Best. In addition, we calculated a Bankrate Score for each carrier out of five possible points, reflecting 2022 homeowners insurance rates, coverage options, available discounts, digital presence and customer satisfaction and financial strength ratings. Finally, we compared coverage options, discounts, accessibility and overall customer service.

*Not officially ranked by J.D. Power due to eligibility restrictions

Auto-Owners

If you’re looking for cheap home insurance in Detroit, Auto-Owners could be a great option. With an average annual premium of just $230 for $250,000 in dwelling coverage, Auto-Owners is by far the cheapest carrier on our list. The company is based in Lansing, too, which could appeal to homeowners wanting to keep their coverage local. Auto-Owners might not be the best for those looking for a digital experience, though, as its online and mobile tools aren’t as robust as those of some competitors.

Learn more: Auto-Owners Insurance review

USAA

If you are part of the military, USAA could be a good choice for home insurance due to its excellent third-party scores, competitive rates and perks offered to active or retired members of the armed forces and qualifying family members. USAA may be particularly appealing for its military-focused coverage, like coverage for uniforms. However, although it gets a high score, USAA is not officially ranked by J.D. Power and only those affiliated with the military qualify for coverage.

Learn more: USAA Insurance review

Hastings Mutual

If you have toys, like boats or ATVs, that you need to insure, you could consider a quote from Hastings Mutual. The company will add qualifying boats and ATVs directly to your home insurance policy, rather than on separate policies, which could make managing your insurance easier. You can’t get quotes online, though, so Hastings Mutual may not be a good fit if you value a more digital insurance experience.

State Farm

Although it has the highest average rate on our list, State Farm’s average price for Detroit home insurance is still $288 less than the city average. If you like working with a local agent, State Farm could be a great option. Although the company is rated above average for customer satisfaction in the J.D. Power study, it does have a higher-than-average overall complaint index from the National Association of Insurance Commissioners (NAIC).

Learn more: State Farm Insurance review

Frankenmuth

Frankenmuth isn’t the most well-known insurance provider on this list, nor is it the cheapest. But it still offers competitive rates, with average premiums below the national average for $250,000 of dwelling coverage. Frankenmuth offers home insurance and other insurance products to Michigan residents. Its homeowners policy covers personal property, separate buildings, personal liability, items of value and loss of use. Multiple potential discounts are available, including multi-policy auto discounts, advance quote discounts and loss history discounts.

Home insurance coverage options in Detroit

Unlike auto insurance, home insurance is not mandated by law, but keep in mind that you will be required to purchase a policy if you have a mortgage. Home insurance coverage may also be worth considering because Detroit is a city that experiences weather perils regularly, meaning homes are at risk for weather-related damages. Although the basic coverage may be enough for some homeowners, the following additional options could bring greater peace of mind.

• Flood insurance: Standard home insurance policies do not include flood insurance, but it can be purchased through the National Flood Insurance Program (NFIP) or some private insurers. Consider asking your insurance provider for more information on available flood insurance policies in your region.
• Water and sewer backup: This optional coverage kicks in if you’ve had a water backup from a sewer or drain line. This is relatively common in basements in Michigan, but it can happen from any water line and doesn’t have to be from a sump pump failure.
• Identity theft coverage: This common endorsement helps cover costs to restore your identity after it’s stolen, including legal fees and credit monitoring services.

All of these coverage options may be useful to add to your home insurance policy in Detroit, since the city’s climate makes it vulnerable to storms, flooding and icy winters that could cause roof damage and burst pipes. Your insurance agent should be able to provide you with details about each optional coverage.

Home insurance discounts in Detroit

Regardless of how much you pay for home insurance, it could be good to save some money on annual premiums. Home insurers in Detroit offer various home insurance discounts that may reduce your insurance cost, and although certain discounts may differ from one company to another, there are some that are typically available from most providers. These include:

• Policy bundling: There is usually a discount for bundling your home insurance policy with auto insurance from the same insurer.
• Safety devices: You could earn a discount for having safety devices like fire and burglar alarms and sprinklers installed in your house because they could protect against certain perils that might cause you to have to file a claim.
• Claims-free: You might save by having a claim-free history for three or more years.
• Roofing: Many companies offer savings for having a new roof, and some companies offer a discount if your roof is made of hail-resistive materials.
• Smart home: If you have a smart home device that alerts you to potential problems, you might save money. If your device automatically takes steps to prevent damage, like turning off leaking water systems, you might save even more.

Frequently asked questions

• • 
    

    What is the best home insurance company?

    The best home insurance company is the one that meets your needs. You may be looking for the cheapest possible policy, stellar customer service or a particular endorsement. Taking the time to understand your needs and research companies may help you narrow down the carriers you request quotes from. Once you have a handful of quotes, you can compare them to choose the right option for you.
  • 
    

    How much does home insurance cost in Detroit?

    A home insurance policy with a dwelling limit of $250,000 costs an average of $1,557 per year in Detroit, which is slightly higher than the national average of $1,428. Your rate will vary based on multiple factors such as the features of your home, your personal rating features and your claims history.
  • 
    

    How much home insurance do I need in Detroit?

    Determining how much home insurance you need doesn’t have to be complex. Most insurance companies have a tool that will help determine the rebuilding cost of your house. Generally, you’ll want enough coverage to rebuild the home if it is destroyed completely. You should consider your liability exposure, too, and purchase enough coverage to feel secure that if someone is injured or you are found at fault for damage to someone’s property, you could handle the legal fees. Finally, you may choose to add additional coverage options to tailor your policy to your needs. Working with a licensed insurance agent can be a helpful way to ensure you understand the coverage you’re purchasing.

• • 
    

    Methodology

    Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

    • Coverage A, Dwelling: $250,000
    • Coverage B, Other Structures: $25,000
    • Coverage C, Personal Property: $125,000
    • Coverage D, Loss of Use: $50,000
    • Coverage E, Liability: $300,000
    • Coverage F, Medical Payments: $1,000

    The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

    These are sample rates and should be used for comparative purposes only. Your quotes will differ.

  • 
    

    Bankrate Score

    Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

    Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

    • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
    • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
    • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.