Best Michigan Home Insurance Companies 2020

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Your home is probably the biggest investment you’ll ever make and you want to work hard to keep it safe. One way to do that is to make sure you have the best homeowners insurance available to you so that you’re able to make repairs or rebuild in the event of a disaster.

Although Michigan law doesn’t require you to have homeowners insurance, if you have a mortgage, your lender probably. Even if you don’t have a mortgage, however, it’s a good idea to carry a comprehensive policy so you can pay for damages or liability in the event that you need to. As such, you’re going to want to make sure that you have the best homeowners insurance in Michigan.

The average annual premium on a homeowners policy in Michigan is $1,073, which is 13% below the national average of $1,288. Your policy premium will vary based on a number of factors, including the cost of your home, your deductible and the liability you take out. The average is based on a $200,000 home with $1,000 deductible and $100,000 liability.

Another factor that influences the cost of Michigan homeowners insurance is where you are in the state. Detroit’s average is a high $2,038, for example, while in Ann Arbor, rates are considerably lower, with an average of $794.

Other factors that insurers look at when determining premium costs include:

  • Market value of your home and property
  • The type and level of your coverage, as well as your deductible
  • Any additional coverage you’ve added on to your basic policy, such as flood insurance
  • Whether you’ve made claims on your policy in the past
  • Your credit history and rating

The most common claims on Michigan homeowners insurance policies are for damage from wind or hail and water damage. Because of the latter, you’ll want to consider flood insurance, which does not come standard with most home insurance. The state ranks 18th nationwide for water damage claims, so it may be useful to you to determine if you’re in a flood plain and thus at risk.

The top home insurance companies in Michigan

To find the best insurance companies in Michigan, we looked at the companies that are writing the most policies in the state — they’re the ones with feet-on-the-ground knowledge of Michigan’s weather and other potential causes of disaster. We looked at consumer organizations such as the J.D. Power U.S. Home Insurance Study and checked out ratings at AM Best, which measures financial stability, and the Better Business Bureau. We also checked out each provider’s website to see who is most user-friendly and helpful. These are our top five picks for best home insurance in Michigan.

  • Amica Mutual: Amica scores at the top of just about every listing for consumer satisfaction, with five Power Circles across the board from J.D. Power and A+ ratings from AM Best and BBB. Amica is also Consumer Report’s number one pick for homeowners insurance. If having a knowledgeable, friendly agent to work with on all your insurance needs is important to you, Amica is a sound choice.
  • State Farm: The largest insurance company in the U.S. by market share, State Farm writes 16% of Michigan’s homeowner insurance policies. J.D. Power gives it four stars and fourth place on its Overall Customer Satisfaction Ranking, while Consumer Reports puts it in sixth place. One area where State Farm excels is in its website, which is informative and educational with an excellent quote tool that can give you a good idea of where you’ll land with your insurance premiums.
  • Allstate: Like State Farm, Allstate writes a lot of policies in Michigan. It handles 8.4% of the market, in fact. The company offers a broad range of coverage types and solid discounts to keep down your cost, but they achieve only average scores for customer service, with a seventh place showing in J.D. Power and 11th place with Consumer Reports. Also like State Farm, Allstate has a robust website which can be a great resource if you’re new to the world of Michigan homeowners insurance.
  • USAA: this company often ranks up there with Amica in first or second place with consumer rating organizations. It’s in second place with Consumer Reports and would probably be high on J.D. Powers listing as well, but it is not included in those rankings because USAA sells policies only to current and former members of the military and their families. If you fit that demographic, you should definitely get a quote from USAA, which tailors its policies to meet the needs of military members.
  • Farmers: As a regional insurer, Farmers Bureau isn’t ranked by J.D. Power or Consumer Reports, but the BBB gives it an A+ and AM Best, which analyzes the financial stability of companies, gives it an A, so you know that even in the case of a wide-spread disaster, the company would still be able to pay out its claims.
Amica State Farm Allstate USAA Farmers
J.D. Power rating 5/5 3/5 3/5 5/5 NA
BBB rating A+ A++ A+ B- A+
AM Best Rating A+ A A+ A++ A

Average rates for homeowners insurance in Michigan

For an average home costing $200,000, with $100,000 in liability coverage, here are some sample rates for Michigan homeowners insurance.

  • Amica: N/A (quotes are only available for prospective customers)
  • State Farm: $1,387
  • Allstate: $789
  • USAA: N/A (quotes are only given to military members)
  • Farmers: $985

Michigan ranks 38th among the 50 states for average premium costs, making it one of the more inexpensive states for homeowners insurance. This is partly due to Michigan’s weather. Unlike more expensive states, it is not known to experience hurricanes nor is it high on the list for tornadoes.

On the other hand, Michigan does land on many lists of states with the worst winter weather and claims based on winter-based housing mishaps are one of the reasons why Michigan homeowners insurance costs what it does.

insurance coverage options in Michigan

Homeowners insurance covers four types of coverage. They are:

  • Structure of your home: This type will rebuild or repair your home due to loss by fire, hurricane, hail, lightning or other natural disasters. It does not cover damage due to floods, earthquakes or wear and tear, although you can get flood or earthquake insurance added on.
  • Personal belongings: This covers clothes, sports equipment, electronics. Keep in mind if you have costly collectibles or very expensive clothes (such as furs) you’ll need more coverage.
  • Liability insurance: Protects you against lawsuits from bodily injury or property damage, including from your pets.
  • Additional living expenses: This pays for a place to live if your home is uninhabitable due to fire or some other disaster.

Flood insurance and earthquake insurance are add-ons. Michigan does not have a lot of damage due to earthquakes, but flood insurance covers water damage, which might happen during a snowstorm or if you live on the coast of Lake Michigan. Michigan ranked 18th in claims filed due to floods. Speaking of water damage, be sure damage from freezing pipes is included in your insurance, as water damage is the third most often reason people file a claim.

Common causes of insurance losses in Michigan

If you live in Michigan, you know that the state has fierce winter storms with significant snowfall. The weight of that snowfall can damage roofs and gutters, leading to insurance claims. Wind and hail damage, too, are common causes for claims, and in fact accounted for nearly 40% of Michigan losses in 2017.

Water damage, caused by flooding in summer months and frozen pipes during the winter, also results in significant numbers of claims in Michigan. Additionally, Michigan is the only state in the U.S. to border on four of the five Great Lakes, so many homeowners live near the water or at low elevations putting them even more at risk for water damage or flooding.

Frequently asked questions

What is the cheapest homeowners insurance in Michigan?

How much you pay for homeowners insurance depends on your neighborhood, if you’ve ever filed a claim before, the value of your home and the level of coverage that you select — among other factors. To find the best homeowners insurance Michigan, it’s important to get quotes from at least three companies.

How do I get homeowners insurance in Michigan?

Once you’ve made an offer on a home and the offer is accepted, you’ll need to have the home inspected. The home inspector will be looking for both big and small issues. After the home is inspected you’ll get a detailed report. If you’re shopping around, you’ll want to get your home appraised. Then get quotes from several different companies.

Is homeowners insurance required in Michigan?

No, it’s not required by law, but that doesn’t mean it’s not a good idea to have it. A homeowners insurance company in Michigan will help you pay the bills if disaster strikes your house. Additionally, if you have a mortgage, your mortgage lender will most likely want you to have a good insurance policy to protect their interest in your home.

How much insurance do I need?

Insure your home for at least the amount of money it would take to rebuild your home in the event of a total loss. For liability insurance, get enough to protect yourself in case of accidents on your property or by dogs.