Over 71% of Michigan residents own homes that they live in, which means that homeowners insurance is a common need in the Great Lakes State. The best home insurance companies in Michigan include Allstate, Farmers, The Hanover, State Farm and USAA. The average cost of homeowners insurance in Michigan is $1,120 per year, or about $93 per month, for $250,000 in dwelling coverage, according to Bankrate’s 2021 study of quoted annual premiums.
Finding the best homeowners insurance in Michigan for your needs can help protect your finances in the event of damage to your home. But with such an active insurance market, how do you compare Michigan homeowners insurance companies? Bankrate’s insurance experts can help you decide how to choose the carrier that is right for you.
The top home insurance companies in Michigan
If you are looking for the best Michigan homeowners insurance, there are a number of factors you might take into consideration. Our insurance editorial team partnered with Quadrant Information Services to obtain up-to-date premium information for the largest companies in the state by market share. After analyzing the premiums, we reviewed each company’s coverage offerings, discounts, policy features and J.D. Power customer satisfaction scores.
Understanding and comparing these aspects of each homeowners insurance company could help you identify if that company is a good fit for your needs. These considerations can also demonstrate where each company excels and where it might lag behind competitors.
If you are getting quotes for Michigan home insurance, you might want to add these companies to your list:
|Home insurance company||Average annual premium for $250K in dwelling coverage||J.D. Power score|
|The Hanover||$1,910||Not rated|
*Not officially ranked by J.D. Power due to eligibility restrictions
Its average premium is slightly higher than Michigan’s average, but Allstate might make up for that with its robust coverage offerings. You may be able to add options like water backup coverage, electronic data recovery, business property coverage and coverage for musical instruments. Allstate also offers a HostAdvantage package, which can provide coverage if you are renting out your home as a short-term rental. The company also offers several discounts that might help you lower the cost of your policy.
Learn more: Allstate Insurance review
When you get a home insurance quote from Farmers, you start by selecting an option: Standard, Enhanced or Premier. From there, you can personalize your policy with endorsements like declining deductible, claim forgiveness and cosmetic damage coverage. Although the company did receive a below-industry-average rating from J.D. Power for customer satisfaction, it was ranked above average in the 2021 J.D. Power U.S. Property Claims Satisfaction Study, so policyholders may be generally satisfied with Farmers’ claims service.
Learn more: Farmers Insurance review
The Hanover is unrated by J.D. Power, but has A (Excellent) AM Best financial strength score, meaning that Michigan policyholders are likely to find a reliable claims payout experience when insuring their home with the company. While The Hanover’s average premium is higher than the state average, there are several valuable options for coverage, including a “prestige” option for high-value homes. You could also add service line coverage and guaranteed replacement cost for a more robust policy.
Learn more: The Hanover Insurance review
State Farm is the largest insurance company in the nation, with over 17% of the homeowners insurance market share. The company has agents across Michigan, so if you like to handle your insurance in person, State Farm could be a good fit. You might also want to consider State Farm if you have a new or upgraded roof. The company offers several discounts for roof age, material and impact resistance. The company didn’t score highly in the J.D. Power 2021 U.S. Property Claims Satisfaction Study though, which could indicate below-average claims satisfaction.
Learn more: State Farm Insurance review
USAA received the highest score for customer satisfaction from J.D. Power, but the company is not eligible for official ranking because it only sells insurance to current military members, veterans and their immediate families. If you qualify, though, you may find that USAA offers below-average rates and exceptional customer service. The company does not offer many discounts, but it does offer numerous optional endorsements, including earthquake coverage and home sharing coverage. Your military uniforms are also covered automatically, without having to add an endorsement.
Learn more: USAA Insurance review
How much is homeowners insurance in Michigan?
A homeowners policy in Michigan costs an average of $1,120 per year, which is quite a bit less than the national average annual cost of home insurance of $1,312. The price for homeowners insurance in the surrounding states is fairly comparable to Michigan, with Indiana homeowners paying an average of $1,150 per year and Ohio homeowners paying $1,111 per year, on average.
Although no state is completely safe from natural disasters, Michigan’s area of the country does not experience some of the more catastrophic weather events that can happen in other states. Summer storms are relatively common, but tornadoes are not nearly as widespread as they are in “Tornado Alley.” On the other hand, Michigan’s northern positioning and the surrounding Great Lakes can make winter weather particularly harsh.
Home insurance in Michigan
Michigan property owners have unique considerations when it comes to homeowners insurance. If you own a home in Michigan, you may first want to understand the common causes of home damage in the state. Then, you can choose coverages to protect your finances from those threats.
Common causes of loss in Michigan
Homeowners in Michigan should be prepared for all kinds of weather. With hot summers and cold winters, weather in this state can change in a heartbeat. Even so, weather is not the only
cause of loss. In Michigan, some common causes of damage are:
- Flooding: Counties in the southeast part of the state are at a higher-than-average risk of floods, with an average National Flood Insurance Program (NFIP) claim payout of $10,900.
- Wind: Winds in Michigan can be fierce all year, especially along the coast — and Michigan has plenty of coastline. Winds can damage roofs, siding, windows and other exterior areas of your home, as well as property stored outside.
- Burglary and theft: Especially in metropolitan areas, the risk of burglary and theft increases. These events can result in damage to your home and the loss of your personal belongings.
- Water damage: Whether from heavy rains, melting snow, ice storms or water backup, water damage happens relatively often in Michigan.
Understanding the common causes of damage in your area can help you decide what coverages to add to your insurance.
Home insurance coverage options in Michigan
When you buy a homeowners policy in Michigan, you will very likely have standard coverage types, like dwelling coverage, personal property coverage and liability coverage. But a standard policy may not cover you for all of the threats to your home. You may also want to consider these options:
- Flood insurance: Flood damage is not covered by a homeowners insurance policy and typically requires its own policy, although some companies offer an endorsement. If you have a mortgage or home loan and are in a flood zone, you will likely be required to buy flood insurance.
- Water backup coverage: This coverage is usually offered as an endorsement, and provides coverage for the damage caused by water backing up in a sewer or drain line. This is relatively common in basements and crawl spaces, but it can happen from any water line in the house.
- Identity theft coverage: As more information is stored online, it is becoming easier for thieves to steal your identity. This endorsement provides coverage for the costs to restore your stolen information.
Because Michigan is such a unique state, with hot summers, cold winters and lots of water, working with an agent to help you decide what coverage options are appropriate for your situation might be a good idea.
Frequently asked questions
What is the cheapest homeowners insurance in Michigan?
How much you pay for homeowners insurance depends on a lot of factors, including the company you choose, the coverage types and levels you purchase, the discounts you qualify for, your claims history, the age of your home and the condition of your roof, among others. Getting quotes from several of the cheapest homeowners insurance companies might help you find a company that offers the coverage you need for a low average price. Just keep in mind that getting cheap coverage doesn’t necessarily mean you are getting the coverage you need. Reviewing your needs with an agent can be a helpful step when buying insurance.
How do I get homeowners insurance in Michigan?
To get a homeowners policy, you first need to get quotes. You can do this online, by phone or in a local agency depending on the homeowners insurance company you are contacting. You will need some information about your home, like the year it was built, how old the roof is and details about any custom features or finishes. Once you want to proceed with a quote, you may have to sign an application and make at least one month’s payment, unless your insurance is paid from an escrow account.
How much insurance do I need?
The level of home insurance coverage you buy is unique to your circumstances. If you have a mortgage or home loan, you will likely need to buy at least enough dwelling coverage to pay off the loan if your home is destroyed. However, you will probably want coverage up to its full replacement value, meaning that if it is destroyed completely, you will have enough to rebuild it entirely. You should also consider your liability exposure. If you have a swing set, pool, dog or host guests often, you may want to purchase a higher amount. Working with an agent could help you choose the coverages that are best for your situation.
What does homeowners insurance cover?
Coverage depends on what kind of policy you have. There are several different homeowners insurance policy forms and each has different scenarios that are covered on a standard policy. In general, things like fire, wind, hail, explosions, smoke, theft and vandalism are covered, but each policy form is slightly different in what it covers and excludes. You can also add endorsements to your policy that could increase your coverage.
Homeowners insurance is designed to cover damage that is both sudden and accidental, but the best way to know what your policy covers is to talk to your agent.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old homeowners with a clean claim history 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.