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Best homeowners insurance in Michigan for 2022

Updated Nov 15, 2022
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How Bankrate chose the best homeowners insurance in Michigan

To find the best homeowners insurance companies in Michigan, we first examined average annual premiums for major carriers in the Great Lakes state to find the cheapest coverage. However, the best insurance company is not necessarily the least expensive, so we looked to other factors such as coverage add-ons, discount availability, mobile app accessibility, third-party scores and financial strength ratings. Then, we converted these metrics into a Bankrate Score that ranges from 0.0 to 5.0 (with 5.0 being the highest possible rating). Our goal is to distill a wealth of information into a score that’s easy for shoppers to understand while also providing a comprehensive view of an insurance provider.

Best home insurance companies in Michigan

Proprietary rate data provided by Quadrant Information Services, customer satisfaction scores from the J.D. Power 2022 U.S. Home Insurance Study and other factors such as coverage and discount availability points to USAA, State Farm and Allstate as some of the best homeowners insurance companies in Michigan. If you are getting quotes for Michigan home insurance, you might want to add these companies to your list:

USAA
Rating: 4.8 stars out of 5
4.8
Bankrate Score
Info Hover for more
J.D. Power
884
/1,000
AM Best
A++
Average monthly premium
$72
Average annual premium
$862
Get a quote
State Farm
Rating: 4.7 stars out of 5
4.7
Bankrate Score
Info Hover for more
J.D. Power
829
/1,000
AM Best
A++
Average monthly premium
$108
Average annual premium
$1,297
Read review
Allstate
Rating: 3.9 stars out of 5
3.9
Bankrate Score
Info Hover for more
J.D. Power
815
/1,000
AM Best
A+
Average monthly premium
$108
Average annual premium
$1,291
Get a quote
Farmers
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info Hover for more
J.D. Power
792
/1,000
AM Best
A-
Average monthly premium
$195
Average annual premium
$2,339
Get a quote
The Hanover
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info Hover for more
J.D. Power
Not rated
AM Best
A
Average monthly premium
$142
Average annual premium
$1,703
Get a quote
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Average rates are for annual policies with $250,000 in dwelling coverage.

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

Best home insurance company for military-focused coverage

J.D. Power:
884 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 862
USAA Insurance review

Explore Bankrate's review

Best home insurance company for local offices

J.D. Power:
829 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,297
State Farm Insurance review

Explore Bankrate's review

Best home insurance company for robust coverage options

J.D. Power:
815 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 1,291
Allstate Insurance review

Explore Bankrate's review

Best home insurance company for a streamlined shopping experience

J.D. Power:
792 /1,000
AM Best:
A -
Avg. annual premium for 250k dwelling
$ 2,339
Farmers Insurance review

Explore Bankrate's review

Best home insurance company for high-value homes

J.D. Power:
Not rated
AM Best:
A
Avg. annual premium for 250k dwelling
$ 1,703
The Hanover Insurance review

Explore Bankrate's review

How much is homeowners insurance in Michigan?

A homeowners insurance policy with $250,000 in dwelling coverage costs an average of $1,292 per year in Michigan, which is nearly 7% less than the national average annual cost of home insurance of $1,383. On average, home insurance in Michigan is slightly more expensive than in neighboring states. For instance, the average cost of $250,000 in dwelling coverage is $1,180 per year in Indiana and $1,119 per year in Ohio. Michigan home insurance may be costlier due to its severe winters that bring an increased risk of damage from snow, sleet and ice.

While Michigan experiences extreme winters, the state does not experience as many extreme catastrophic weather events as 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 Insurance Information Institute (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.

Common causes of home damage in Michigan

If you own a home in Michigan, you may first want to understand the common causes of home damage in the state. This information can help you choose the coverage types you may need to protect your finances from those threats.

Common causes of claims in Michigan

While extreme weather events that lead to natural disasters may be uncommon in Michigan, homeowners may want to be prepared for a wide array of weather events that can still lead to home damage on a smaller scale. With hot summers and cold winters, weather in this state can change drastically throughout the year. Even so, the weather is not the only cause of home damage. 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 along 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 damage your home and cause the loss of your personal belongings.
  • Water damage: Whether from heavy rains, melting snow, ice storms or water backup, water damage happens 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 usually includes 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 additional coverage options:

  • Flood insurance: Flood damage is not covered by a standard homeowners insurance policy and coverage 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. All parts of Michigan have some degree of flood risk, but the Northern Peninsula and Southeastern part of the state carry the most significant risk.
  • 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 personal information is stored online, it is becoming easier for thieves to steal your identity and cause you financial and reputational harm. More than 24,000 cases of identity theft were reported in Michigan in 2020.This endorsement helps provide coverage for the costs of restoring your stolen identity.

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

Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

Edited by Managing Editor
Reviewed by Director of corporate communications, Insurance Information Institute