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Best homeowners insurance in Michigan for 2023

USAA, Allstate, State Farm, The Hanover and Farmers offer some of the best home insurance policies in the state.

Updated Sep 01, 2023
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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.

Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
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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
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
AM Best
A++
J.D. Power
884
/1,000
Average monthly premium
$74
Average annual premium
$886
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power
815
/1,000
Average monthly premium
$121
Average annual premium
$1,452
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power
829
/1,000
Average monthly premium
$113
Average annual premium
$1,351
Read review
The Hanover
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
AM Best
A
J.D. Power
Not rated
Average monthly premium
$127
Average annual premium
$1,524
Get a quote
Farmers
Rating: 2.9 stars out of 5
2.9
Bankrate Score
Info
AM Best
A
J.D. Power
792
/1,000
Average monthly premium
$252
Average annual premium
$3,022
Get a quote
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

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

The top 5 home insurance companies in Michigan

USAA

Best for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884/1,000 AM Best: A++

Average annual premium

$ 886 for $250k dwelling coverage
USAA Review Get a personalized quote

Why USAA made our list: Although the company is not eligible for official ranking due to eligibility restrictions, USAA received the higher score for customer satisfaction from J.D. Power out of all the best homeowners insurance companies in Michigan that we evaluated. USAA is only available to military members, veterans and their eligible family members. However, if you qualify, you may find that USAA offers below-average rates, exceptional customer service and unique military-focused endorsements such as military uniform and equipment coverage. Additionally, if your personal property is damaged, destroyed or lost in a war, USAA may waive your deductible. For these reasons and more, USAA earned one of the 2023 Bankrate Awards for Best Home Insurance Company Overall

Who USAA may be good for: USAA could be the best Michigan homeowners insurance company for those seeking military-focused coverage options and who prefer to do business over the phone or online (but only if they meet USAA’s strict eligibility restrictions).

Allstate

Best for robust coverage options

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815/1,000 AM Best: A+

Average annual premium

$ 1,452 for $250k dwelling coverage
Allstate Review Get a personalized quote

Why Allstate made our list: During our study, we found that Allstate offers one of the most extensive lists of optional endorsements of all the Michigan home insurance companies we analyzed. With Allstate, you may be able to add options like water backup coverage, electronic data recovery, business property coverage and coverage for musical instruments to your homeowners insurance policy. Allstate also offers a HostAdvantage package, which provides coverage if you rent your home as a short-term rental. Although it may not be the cheapest on our list, the company offers several discounts that might help you lower the cost of your policy.

Who Allstate may be good for: Homeowners in Michigan willing to spend more money on a policy with extra endorsements might find Allstate as their company of choice. However, those who prioritize customer service may want to do extra research based on Allstate’s relatively low third-party scores.

State Farm

Best for local offices

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829/1,000 AM Best: A++

Average annual premium

$ 1,351 for $250k dwelling coverage
State Farm Review Get a personalized quote

Why State Farm made our list: State Farm has exclusive agents in communities throughout Michigan and is the largest home insurance company in the U.S. by market share, so if you like to handle insurance in person, State Farm could be a good fit. State Farm also scored high on the 2022 J.D. Power U.S. Insurance Digital Experience Study for both service and shopping, so tech-savvy homeowners who prefer the convenience of hands-on policy management have options, too. You might also consider State Farm for homeowners insurance if you have a new or upgraded roof. The company offers discounts for roof age, material and impact resistance. 

Who State Farm may be good for: Because State Farm has an extensive network of agencies throughout Michigan and is known to have excellent customer service, it could be great for homeowners who prefer the personal touch of a neighborhood agent. However, compared to some companies State Farm offers fewer discount opportunities.

The Hanover

Best for high-value homes

Rating: 3.1 stars out of 5
3.1 Bankrate Score
JD Power: Not rated AM Best: A

Average annual premium

$ 1,524 for $250k dwelling coverage
The Hanover Review Get a personalized quote

Why The Hanover made our list: The Hanover was named one of Michigan's best home insurance companies for its thorough list of endorsements and coverage options for high-value homes. High-net-worth individuals may be especially interested in The Hanover’s Platinum coverage package. Depending on which Platinum tier you choose, this pre-built package could include up to 150 percent of extended dwelling replacement cost, identity theft protection, water backup coverage, lock replacement and more.  

Who The Hanover may be good for: Michiganders who own high-value homes or have expensive collections that need scheduled personal property coverage may want to consider requesting a quote with The Hanover (which you will have to do with the help of an agent, as online quotes are not available).

Farmers

Best for a streamlined shopping experience

Rating: 2.9 stars out of 5
2.9 Bankrate Score
JD Power: 792/1,000 AM Best: A

Average annual premium

$ 3,022 for $250k dwelling coverage
Farmers Review Get a personalized quote

Why Farmers made our list: Although Farmers’ average home insurance premium is much higher than the Michigan average, it could still be a good choice for those who want the ease of purchasing a predetermined yet robust coverage package. 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. Additionally, the company offers several discount opportunities, so depending on what you’re eligible for, these could offset the company’s generally high rates. 

Who Farmers may be good for: Michigan homeowners who don’t mind paying extra for the convenience of a prebuilt coverage package might want to contact Farmers. Farmers also offers a special discount to Michigan homeowners who have a Flume water-leak detection device installed in their homes, so this could be another perk to consider.

How Bankrate chose the best home insurance companies 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.

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.

$150K
$683
$250K
$886
$350K
$1,067
$450K
$1,240
$750K
$1,715
$150K
$1,051
$250K
$1,452
$350K
$1,902
$450K
$2,364
$750K
$3,797
$150K
$958
$250K
$1,351
$350K
$1,647
$450K
$2,035
$750K
$3,177
$150K
$1,133
$250K
$1,524
$350K
$1,921
$450K
$2,318
$750K
$3,442
$150K
$1,862
$250K
$3,022
$350K
$4,104
$450K
$5,057
$750K
$7,778
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

Insurance companies use many different rating factors to calculate how much to charge for coverage, including crime rates, weather patterns and the cost of labor and materials. These factors and more can cause homeowners insurance rates to vary not only from state to state but also from city to city.

Below, you’ll find some of the cheapest cities in Michigan when it comes to average homeowners insurance premiums: 

  • Brohman: $1,390 — 9 percent below the state average
  • Edwardsburg: $1,395 — 9 percent below the state average
  • New Troy: $1,395 — 9 percent below the state average
  • Clarkston: $1,398 — 8 percent below the state average
  • Clayton: $1,399 — 8 percent below the state average

If you’re considering moving to Michigan and are concerned with high homeowners insurance premiums, you may want to think twice before relocating to any of the cities below. According to rate data provided by Quadrant Information Services, these may be some of the most expensive cities in Michigan for homeowners insurance. 

  • Hazel Park: $1,753 — 15 percent above the state average
  • Harper Woods: $1,747 — 14 percent above the state average
  • Inkster: $1,746 — 14 percent above the state average
  • Southfield: $1,713 — 12 percent above the state average
  • Flint: $1,699 — 11 percent above the state average

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: When you have a good sense of what your coverage needs and priorities are, you will want to gather quotes from several carriers. Don't assume that the first quote you receive is going to be the lowest — you may be surprised to find that you'll end up with a range of prices for exactly the same coverage. Make sure that you are asking for the same coverage limits and types of coverage from each insurer so that you have an apples-to-apples comparison. Also ensure that your quote includes any discounts for which you are eligible for, since they can have a significant impact on your final premium rate. Many insurers offer quotes directly from their websites; others may require you to talk to an agent to receive a quote.
  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 options 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.

Info
Recent news: Relief funds available to Michigan homeowners

If you are a Michigan homeowner who has experienced financial hardship in the past several years, you may find support through the Michigan Homeowners Assistance Fund. In 2023, the fund has delivered more than $114 million in relief to more than 15,000 homeowners. The program uses federal funding allocated under the American Rescue Plan Act of 2021 to pay up to $25,000 per household for home-related expenses, such as delinquent mortgage payments, property taxes or insurance costs.

To qualify for funding, applicants must have experienced a financial hardship that was directly related to COVID-19. Households also qualify if the total household income is less than 150 percent of the Area Median Income (AMI). More information and an application can be found at the website of the Michigan State Housing Development Authority.

Frequently asked questions

Written by
Carol Pope
Former Writer, Insurance

Carol Pope is a former 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 Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute