Best homeowners insurance in Michigan in 2022
Over 71% of homes in Michigan are owner-occupied, which means that homeowners insurance is a common need in the Great Lakes State. The average cost of homeowners insurance in Michigan is $1,288 per year, or about $107 per month, for $250,000 in dwelling coverage, according to Bankrate’s 2022 study of quoted annual premiums. According to our research, the best home insurance companies in Michigan include USAA, State Farm, Allstate, Farmers and The Hanover.
Finding the best homeowners insurance in Michigan for your needs can provide you and your family with financial peace of mind in the event of a covered loss to your home. But with such a competitive insurance market, how do you compare Michigan homeowners insurance companies? Consider these factors about homeowners insurance in Michigan to help you choose the carrier that is right for you.
Best home insurance companies in Michigan
If you are looking for the best Michigan homeowners insurance, there are a number of factors you might want to take into consideration. Bankrate’s 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, J.D. Power customer satisfaction scores and AM Best financial strength ratings. We compiled all these aspects into a proprietary Bankrate Score on a scale of 0 to 5.0. The higher a company’s score, the more highly that company ranked in the scoring categories.
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||Bankrate Score||Average annual premium for $250K in dwelling coverage||J.D. Power score|
|The Hanover||3.2||$1,488||Not rated|
*Not officially ranked by J.D. Power due to eligibility restrictions
USAA received the highest score for customer satisfaction from J.D. Power, but the company is not eligible for official ranking because it only serves active-duty military members, veterans and their eligible family members. 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 makes up for it with 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
State Farm is the largest insurance company in the nation, with nearly 18% of the U.S. homeowners insurance market share, according to the Insurance Information Institute (Triple-I) . The company has exclusive agents in communities 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. State Farm didn’t score highly in the 2021 J.D. Power U.S. Property Claims Satisfaction Study, which could indicate below-average claims satisfaction. However, the full-lines insurer carries an A++ (Superior) financial strength rating from AM Best.
Learn more: State Farm Insurance review
Allstate offers Michigan homeowners robust coverage options. 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 offers several discounts that might help you lower the cost of your policy. Allstate has a higher-than-average complaint index from the National Association of Insurance Commissioners (NAIC), though. A score of 1.00 represents a baseline number of complaints; Allstate’s home insurance index is 1.27.
Learn more: Allstate Insurance review
When you get a home insurance quote from Farmers Insurance Group, you start by selecting one of its three coverage packages: 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 overall home insurance customer satisfaction, it was ranked above average in the 2021 J.D. Power U.S. Property Claims Satisfaction Study, so policyholders appear to be generally satisfied with Farmers’ claims service. Additionally, the carrier’s premium is the highest on our list of the best five homeowners insurers in the state.
Learn more: Farmers Insurance review
The Hanover is unrated by J.D. Power as its home insurance market is limited to 18 states, but has an A (Excellent) AM Best financial strength rating. This means Michigan policyholders are likely to have better peace of mind knowing that the insurance company has a history of financial stability and strong track record of expediently paying claims for covered losses. 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
How much is homeowners insurance in Michigan?
A homeowners policy with $250,000 in dwelling coverage costs an average of $1,288 per year in Michigan, which is nearly 7% less than the national average annual cost of home insurance of $1,393. The price for homeowners insurance in the surrounding states is fairly comparable to Michigan, with Indiana homeowners paying an average of $1,195 per year and Ohio homeowners paying $1,164 per year, on average.
Although no state is completely safe from natural disasters, Michigan does not experience as much of extreme catastrophic weather events compared to some other states. Summer storms are relatively common across the state, but tornadoes are not nearly as widespread as they are in the Midwest’s “Tornado Alley.” However, Michigan did experience 17 tornadoes in 2021, according to the Triple-I. On the other hand, Michigan’s northern positioning and the surrounding Great Lakes can make winter weather particularly harsh, with numerous snow and ice events.
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 coverage types 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 property 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 lake coasts — and Michigan has plenty of coastline being surrounded by four of the Great Lakes. Severe windstorms 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 of the state, 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 coverage to add to your insurance.
Home insurance coverage options in Michigan
When you buy a homeowners policy in Michigan, the policy should include 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 standard homeowners insurance policy and typically requires its own policy, although some companies offer the coverage as an endorsement. If you have a mortgage or home loan and are in a designated flood zone, your lender may require you to buy flood insurance. Flood policies are available through the federally-backed NFIP and dozens of private flood insurers.
- Water backup coverage: This coverage is usually offered as an endorsement, and provides financial protection for the damage caused by water backing up in a sewer or drain line, or if your sump pump fails. This type of damage 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 and cause you financial and reputational harm. This endorsement provides coverage for the costs to restore your stolen information.
Because Michigan has such unique factors for homeowners, with hot summers, long winters and lots of water, working with a professional insurance agent to help you decide what coverage options are appropriate for your situation might be beneficial.
Frequently asked questions
What is the cheapest homeowners insurance in Michigan?
How much you pay for homeowners insurance depends on a lot of individual 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 to be financially protected from losses. Reviewing your needs with a local insurance agent can be a helpful step when buying home insurance coverage.
How do I get homeowners insurance in Michigan?
To get a homeowners policy, you should obtain several quotes to compare prices. You can do this online with most major insurers or quote comparison sites, by phone or in a local exclusive or independent agency depending on the homeowners insurance company you are contacting. You will need some basic information about your home, like the year it was built, square footage, how old the roof is and details about any custom features or finishes. Once you agree to proceed with a quote, you may have to sign an application and make at least one month’s premium payment, unless your insurance is paid from an escrow account managed by your mortgage lender.
How much insurance do I need?
The level of home insurance coverage you buy is unique to your home and financial circumstances. Though it may cost more, buying dwelling coverage for the full replacement value of the home provides financial peace of mind that you will have enough to rebuild it entirely with current construction costs in mind in the event of a catastrophic loss. 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 for further financial protection, including a personal umbrella policy, which provides a second layer of liability protection. Working with an agent could help you choose the coverage options 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. Typically, hazards like fire, wind, hail, explosions, smoke, theft and vandalism are covered, but each policy form can be slightly different in what it covers and excludes. Standard policies also typically include loss of use which provides coverage for temporary housing if your home is uninhabitable due to a covered loss. You can also add endorsements to your policy that could increase your coverage, such as water backup and ID theft protection.
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 local insurance agent.
Bankrate utilizes Quadrant Information Services to analyze 2022 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
Average rates for individual cities represent 2021 data.
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 Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.