Best homeowners insurance in Michigan

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Although Michigan law doesn’t require you to have homeowners insurance, if you have a mortgage, your lender probably does. Even if you don’t have a mortgage, it’s a good idea to carry the best comprehensive home insurance Michigan has 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 $1,139, which is $338 below the national average of $1,477. 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.

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 because they are 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 & Associates 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.

Home insurance company Average annual premium J.D. Power customer satisfaction score
Allstate $1,445 829/1000
Auto-Owners $1,187 843/1000
Farmers $1,534 814/1000
State Farm $1,064 829/1000
USAA $1,388 889/1000

Allstate

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. Allstate has a robust website which can be a great resource if you’re new to the world of Michigan homeowners insurance. Allstate has some unique coverage options such as protection for identity theft, sports equipment and options for people who do short-term rentals.

Auto-Owners

Despite the name, Auto-Owners Insurance writes homeowner policies — and it does a good job at it. The company is in third place with J.D. Power’s customer satisfaction ranking and Consumer Reports also puts it in third place, with 5/5 points for claim amount, agent courtesy, timely payment and promptness of response. It features a good handful of optional coverages, including a Homeowners Plus plan which covers everything from food spoilage in a power outage to a ruined rug caused by a leaky appliance.

Farmers

Farmers Bureau gets good ranks from AM Best and J.D. Power, so people interested in its coverage options can be confident in the provider’s ability to pay claims and provide customer service. It offers some advantages like contents replacement coverage and eco-rebuild options, and it offers discounts for things like having a new home, using safety features and renovating certain parts of your home.

State Farm

The largest insurance company in the U.S. by market share, State Farm writes 16% of Michigan’s homeowner insurance policies. 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.

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.

Average rates for homeowners insurance in Michigan

Michigan’s average annual premium is $1,139, which puts it in 38th place among all the states, 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. If you have costly collectibles or very expensive clothes (such as furs) you’ll need more coverage.
  • Liability insurance: This 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.

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.

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.

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all 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 may be different.