Best homeowners insurance in Michigan for 2023

Compare the best homeowners insurance companies in Michigan

Proprietary rate data provided by Quadrant Information Services, customer satisfaction scores from the 2022 J.D. Power U.S. Home Insurance Study and other factors such as coverage and discount availability points to USAA, Allstate, State Farm, The Hanover and Farmers 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 not officially ranked by J.D. Power due to eligibility restrictions

How much is homeowners insurance in Michigan?

A homeowners insurance policy with $250,000 in dwelling coverage costs an average of $1,527 per year in Michigan, which is nearly 7 percent less than the national average annual cost of home insurance of $1,428. 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 $1,225 per year in Indiana and $1,140 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.

How to find the best cheap home insurance in Michigan

Although homeowners insurance isn’t mandated by law, your mortgage company will almost certainly require you to carry it if you’re financing your house. But even if you own your home outright, a home is likely one of the most significant purchases you make in your lifetime, and a robust home insurance policy can provide vital financial protection for this investment. However, just because homeowners insurance is important doesn’t mean it needs to break the bank. Here are some steps you can take to find the best cheap home insurance in Michigan: 

1. Determine your coverage needs: Figuring out how much coverage you need may be the first step when looking for the best Michigan homeowners insurance companies. Although lower limits and fewer endorsements may afford you a lower rate, you could leave yourself vulnerable to a hefty out-of-pocket expense if you experience a claim while underinsured. At the same time, if you purchase limits higher than you need or add endorsements that don’t make sense for your circumstances, you might end up paying more for your policy than necessary. When in doubt, speak with a licensed agent for some guidance before you request quotes. 
2. Establish your priorities: Outside of coverage options, you may want to consider what you’re looking for in your home insurance company. Are you most concerned with customer service? If so, it may be a good idea to seek out carriers with high third-party customer service scores issued by J.D. Power. Or, maybe, you don’t like calling contact centers and would rather handle your policy needs online. If that’s the case, you might tailor your search to companies that offer a highly-rated mobile app or self-service customer portal. Knowing what benefits and perks you’re looking for can help narrow down the carriers from which to request quotes. 
3. Request quotes: After you’ve determined your coverage needs and established your priorities, it’s time to request homeowners insurance quotes. Depending on the carrier, you can request quotes online, over the phone or in person with an agent. How you choose to request quotes depends on your preference. Homeowners who are new to insurance may enjoy the personal touch an in-agency experience can provide. Still, others who know exactly what they want might prefer handling their quotes online. One important thing to note is that you may want to be sure that you are making an apples-to-apples comparison by requesting the same (or similar) coverage levels and endorsements across all carriers. Otherwise, you could risk purchasing a policy that’s cheaper than the rest only because it has less coverage. 
4. Take advantage of savings opportunities: Each insurance company offers its own set of unique discounts, and depending on what you qualify for, you could save a significant amount of money. You may want to ask your agent to look over your quote to make sure you aren’t missing any discounts that apply to you.

Common home insurance discounts in Michigan

When you’re requesting quotes from the best Michigan homeowners insurance companies, you may want to look out for these common discounts to help you save:

Home insurance coverage types in Michigan

An important part of finding a policy that works for you is tailoring your coverage package to meet your needs. A strategy to tackle this is to consider the biggest homeowners insurance risks in your specific region.

While extreme weather and natural disasters may be uncommon in Michigan, homeowners in the state may want to be prepared for a wide array of weather events that could lead to home damage on a smaller scale. With hot summers and cold winters, the weather in this state can change drastically throughout the year. You could also experience a loss through theft or vandalism if you live in a high-crime area. Additionally, if you live near one of the Great Lakes, wind may be a concern. 

With that in mind, you may want to consider adding the following endorsements to your Michigan homeowners insurance, depending on your specific situation: 

• 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