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Michigan homeowners pay an average premium of $203 per month for homeowners insurance, and Liberty Mutual, State Auto, and Safeco are the best homeowners insurance companies in the Great Lakes State.
And while Michigan homeowners don’t have to worry about earthquakes or hurricanes, and tornadoes are rare, they may need to rely on their home insurance for damage from wind, hail, freezing cold temperatures, rain, and snow.
If you’re a Michigan homeowner, you may also want to consider flood or high-value personal property insurance, as standard policies don’t cover flooding and typically limit coverage on valuables.
Table of contents
- Best home insurance companies in Michigan
- How much is homeowners insurance in Michigan?
- What are the cheapest home insurance companies in Michigan?
- How much homeowners insurance do you need in Michigan?
- What are some of the biggest risks when owning a home in Michigan?
- How can you save money on homeowners insurance in Michigan?
- Average home replacement cost in Michigan
- Michigan homeowners insurance FAQs
Best home insurance companies in Michigan
Michigan offers homeowners quality coverage from many insurance companies throughout the state. Choosing the right home insurance company depends on your specific circumstances and needs.
Best insurer for cheap rates: State Auto
State Auto has been in business since 1921 and offers coverage in 33 states, including Michigan. In 2022, the company became a part of Liberty Mutual, giving it strong backing for ongoing customer support and longevity for homeowners.
Customized policy options from basic protection to expanded high-limit coverage
Offers many discounts to help lower your home insurance costs
Self-guided property inspection app ensures proper insurance protection
A few types of coverage available only through insurance packages
Received 118 complaints in the last three years through the Better Business Bureau
Only agents and existing policyholders can get help through the website
Best large insurer: Liberty Mutual
Liberty Mutual is the sixth-largest property and casualty insurer in the world. It has a J.D. Power score of 805 for providing a satisfying purchase experience to customers.
Many types of coverages available to customize your policy
Variety of discounts to lower your premiums
Digital tools, including a mobile app, make managing your policy easier
Discounts may apply to specific coverages, and not all applicants qualify
Liability coverage not available for some dog breeds
More than 1,800 Better Business Bureau complaints filed in the last three years
Homeowners pay an average monthly premium of $140 for home insurance through Liberty Mutual. Your cost can vary depending on the location, home value, and coverage levels you select.
Best for wind and hail coverage: Safeco
Wind and hail are the most common causes of loss nationwide, according to the Insurance Information Institute.
“When compared to other states, Michigan is really lucky when it comes to natural disasters or its lack thereof,” says Ashley Jantovsky, a licensed insurance agent and founder of Perfect Price Insurance Agency LLC in Livonia, Michigan.
“Some of the most common weather-related losses in Michigan occur from wind and hail, freezing cold temperatures, rain, and snow.”
Safeco has a J.D. Power score of 809, which is slightly below the average of 819 for overall customer satisfaction, according to the 2022 U.S. Home Insurance Study.
Live video chats for damage assessment when filing a claim
Extended dwelling coverage available if the claim exceeds policy limits
Pay one deductible when the same event damages your home and car
Higher premiums compared to other top insurers in Michigan
Few discounts available
Water backup coverage not an option
Safeco policies cost an average of $363 per month for Michigan homeowners. It has the highest premiums based on an Insurify data analysis of Michigan homeowners insurance companies.
Best insurer for high-value homes: AIG Private Client Group
AIG Private Client Group provides the best protection for high-value homes in Michigan. The company specializes in high-value assets and risk management for personal liability. You can customize your coverage to include protection for your collections to protect your wealth and legacy.
Personalized coverage to protect against risks unique to each policyholder
Offers concierge-level claims service for high-value homes
Trusted by nearly 40% of the Forbes 400 Richest Americans
Higher premiums due to higher coverage amounts and policy limits
May need additional protection to insure coverage for art, collections, and other valuables
Will need to buy a separate policy to protect against floods
Best regional insurance company: Fremont Insurance
Headquartered in Fremont, Michigan, Fremont Insurance has been serving Michigan homeowners since 1876 and has a financial strength rating of A (Excellent) from A.M. Best.
Excellent financial strength rating from A.M. Best
Discounts for bundling, security or fire alarm system, and more
Variety of coverages available, including home, car, RV, snowmobile, and umbrella insurance
Must go through an agent to get a quote or buy a policy
Not accredited by the Better Business Bureau
Coverage is only available in Michigan and Wisconsin
Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
How much is homeowners insurance in Michigan?
Many factors affect home insurance costs in Michigan, including the policy type, your home’s age and location, construction materials, and security measures, such as smoke detectors or burglar alarms.
“Additional risks that could adversely affect your home insurance premium are having a pool or trampoline on the premises, a home in poor condition or with pre-existing damage, and living in a rural area with limited or no access to fire hydrants or fire department services,” says Jantovsky.
How your policy choices affect home insurance rates in Michigan
Your policy form
The most common policy for homeowners is special form, also called HO-3. It protects your home against all perils unless the policy expressly excludes it from coverage. A peril is a specific cause of loss or damage, such as fire, theft, or wind damage.
Different policy forms have different approaches to how they cover perils. For example, a basic form (HO-1) policy covers your home and personal property only if the damage is from fire and a few other limited perils. A broad form (HO-2) policy covers perils the policy specifically includes, while a special form (HO-3) policy covers homes for all risks unless the policy expressly excludes them.
Before purchasing a policy, you should always understand what perils it covers to protect your financial situation.
Learn More: Understanding the 8 Types of Homeowners Insurance
Your coverage level
A higher coverage level typically means a more comprehensive policy, which may include more coverage options and a higher level of protection against different types of perils. More protection comes at a cost, which often means higher premiums.
A deductible is the amount you pay out of pocket when you file a claim before the policy kicks in to cover the loss.
“Deductibles on homeowners policies can range from $250 to upwards of $5,000,” says Jantovsky. “The higher the deductible, the lower the premium, and the lower the deductible, the higher the premium.”
How location affects home insurance rates in Michigan
Home insurance quotes can vary depending on the location of the property you want to insure. Even different ZIP codes within Michigan can have different risks and exposures that affect the cost of insuring a property.
For example, homes located along the shores of Lake Michigan or near a river or lake may be more prone to water damage and can have higher insurance rates than inland homes. Crime rates can also play a role in the cost of home insurance. Areas with high crime rates, such as Saginaw, Detroit, Kalamazoo, and Lansing, are generally more expensive to insure.
What are the cheapest home insurance companies in Michigan?
State Auto, Liberty Mutual, and Hippo are Michigan’s cheapest home insurance companies. All three insurers offer average monthly quotes that fall below the state’s average cost of home insurance. Keep in mind that your specific coverage needs can vary, which may result in a more expensive policy.
|Insurance Company||Average Monthly Quote|
How much homeowners insurance do you need in Michigan?
Although state law doesn’t require you to have homeowners insurance, your mortgage company will usually make having home insurance a condition of your mortgage. Make sure to read the policy carefully and ask questions so you understand precisely what your policy covers — homeowners insurance has several standard components to consider.
Learn More: How Much Homeowners Insurance Do You Need?
What home insurance coverages should you buy in Michigan?
To fill in the gaps and meet your particular needs, insurers offer a multitude of coverages. Here are the standard parts of home insurance in Michigan:
Dwelling coverage (Coverage A): Dwelling coverage protects the structure of your house. Claims typically use replacement cost coverage to calculate your coverage amount.
Appurtenant structures (Coverage B): This offers “other structures” protection. It can cover a detached garage, tool shed, barn, or swimming pool. Your policy usually covers up to 10% of the dwelling amount without needing to pay additional premiums.
Personal property/contents coverage (Coverage C): Protects personal belongings, such as furniture, books, and clothing. It also covers items away from home, including property left in a car or hotel room.
Additional living expenses (Coverage D): Pays for hotels, restaurant bills, and other costs if you have to live away from your home after a covered event (such as a fire destroying your home). If you rent out part of your house, your policy can even reimburse lost rent if you can’t live in the home.
Liability (Coverage E): Covers bodily injury or property damage. For example, it protects you if someone files a lawsuit against you following an injury on your property.
Medical payments (Coverage F): Covers immediate care costs like first aid and ambulance care if someone is hurt at your home or on your property. Your coverage amount depends on the insurance company, so read your policy carefully.
Property of others (Coverage G): Protects against physical damage you might cause to another person’s property. The amount of coverage can vary, so check with your insurance company.
Contact the Michigan Basic Property Insurance Association if you can’t find insurance coverage in the regular market. The association can help you find coverage if you’re ineligible for home (or renters) insurance.
See Also: What Is Personal Liability Homeowners Insurance?
What optional home insurance coverages should you buy in Michigan?
“Most consumers don’t realize that a standard homeowners policy is not all-encompassing when it comes to losses,” says Jantovsky. “Carriers offer a plethora of optional coverages to fill in the holes and meet your particular needs.” You might pay an additional premium for the extra coverage, but here’s what you should consider for your home in Michigan:
Additional replacement cost coverage: Provides extra protection for rebuilding or replacing a home in the event of damage or destruction. It’s typically an add-on to a standard homeowners insurance policy and covers the cost of replacing a house above the policy limits of the standard coverage.
Debris removal: Covers the reasonable expense of removing debris from the property after a covered loss if the cost exceeds the policy’s coverage limit. It can help make sure you have enough funds to pay for debris removal after disaster strikes.
Tree removal: Covers the cost of removing fallen trees following an insured loss. The standard limit for a tree removal add-on is $500.
Trees, shrubs, and other plants: Covers the cost of replacing damaged trees, shrubs, and other plants on a property after a covered loss. The standard limit for this coverage is $500 per item, but policies typically have an aggregate limit. This coverage can ensure adequate protection if you have significant landscaping on your property.
Fire department service charge: Pays for expenses you might incur when the fire department comes to save or protect your property from damage. Policies have a standard limit of $500 for this coverage.
Credit card, fund transfer, and counterfeit money: Protects against financial losses due to forgery, fraud, and counterfeiting of financial instruments, including the fraudulent use of credit cards, fund transfer cards, or counterfeit money. The standard limit for this coverage is $500, which means that you can use this coverage to reimburse expenses up to $500.
Ordinance and law coverage: Provides extra coverage if a home is damaged and can’t be rebuilt to its original condition because of changes in local building codes. In most cases, the standard limit is 10% of the total dwelling coverage amount, but some insurance companies allow you to purchase more coverage.
Personal property endorsement: Covers high-value personal property, antiques, or collections like jewelry, furs, or firearms. Home insurance policies limit coverage for items like these, so you may have the option to increase the coverage. In some cases, a separate policy may be necessary.
Water backup and sump pump overflow: Covers damage from water backup and sump pump overflow if your standard coverage doesn’t include this protection.
Flood insurance: Pays for damage to your home and its contents from flooding. Standard homeowners policies don’t cover flood damage. Flood insurance is especially recommended for homeowners in high-risk flood zones or near a body of water, such as a river, dam, lake, or pond. Contact your insurance company or the National Flood Insurance Program for more information.
What are some of the biggest risks when owning a home in Michigan?
These perils are your biggest cause for concern in the Great Lakes State:
Windstorm: Homeowners insurance in Michigan generally covers windstorm damage. If you have a basic form, special form, modified form, or broad form policy, your coverage will include your house and its contents, such as furniture and other personal property.
Hail and snow: Homeowners in Michigan may experience damage to their homes and personal belongings from hail and snow. Most policies cover hail, but you must have broad form coverage or better for protection from snow and ice damage.
Flood: Standard homeowners insurance doesn’t cover damage from flooding. You must purchase separate insurance. Private flood insurance may be available through your home insurance company, or you can contact the National Flood Insurance Program to purchase a policy.
Learn More: A Homeowners Guide to Coverage Levels and Limits
How can you save money on homeowners insurance in Michigan?
Homeowners insurance can be a significant expense, but you have ways to save money on your policy in Michigan. Here’s how.
Bundle home and auto insurance
Many Michigan home insurance companies offer discounts for customers with multiple policies with them. Besides reducing your overall insurance costs, bundling makes it more convenient to manage multiple policies in one place and get a better understanding of your insurance needs and coverage.
Increase your deductible
A higher deductible makes you responsible for paying a larger portion of any claim you file. It reduces the overall risk for the insurance company, resulting in lower premium costs for you. Keep in mind that a higher deductible means you’ll pay more out of pocket when you file a claim, so make sure you have enough savings before making the change.
Take advantage of discounts
A security system, smoke detectors, or a new roof can result in discounts from many insurance companies. You can save a lot of money on your insurance by taking advantage of these savings opportunities. To help you get the lowest rate, check your policy for discounts to see if you qualify.
Comparison shopping for home insurance allows you to compare rates and coverage options from different insurance companies. The cost of home insurance can vary significantly among companies, so by comparing other options, you can find the policy that offers the best combination of price and coverage for your specific needs.
Average home replacement cost in Michigan
A replacement cost represents the cost of reconstructing your home using the same type of building materials or replacing your possessions at today’s prices. It’s crucial to your home insurance coverage levels because it helps ensure that you have enough funds to rebuild your home or replace its contents if damaged or destroyed.
Here’s the average home value in a few different cities across Michigan.
|City||Average Home Value|
Michigan homeowners insurance FAQs
Here are answers to some commonly asked questions about homeowners insurance in Michigan.
The average cost of home insurance in Michigan is $203 per month. Secondary coverage, such as flood insurance if you live near a lake, river, dam, or pond, can increase your spending on home insurance.
The average cost of home insurance in the U.S. is $109 per month, according to the National Association of Insurance Commissioners. Michigan homeowners pay an average of 86% more, despite being regulated by state law.
Michigan lacks natural disasters like hurricanes and earthquakes but makes up for this in other ways. “Unlike some catastrophes, like wildfires, that may only happen once every few years in most states, the severe weather affecting insurance policyholders in Michigan happens on a much more frequent and consistent basis,” says Jantovsky.
“As an example, Michigan residents can expect to see around 30 thunderstorms in a year, and each weather event leads to home insurance claims due to wind, hail, lightning, snow and ice, freezing rain, and flooding.”
The three main types of homeowners insurance are broad form, special form, and comprehensive form. Each type covers different perils or causes of loss, so you’ll want to review your coverage carefully to ensure you have the right protection.
You must also take into account the level of coverage. Actual cash value considers the property’s depreciated value from age and condition. Replacement cost covers rebuilding or repairing a home using the same materials and quality as the original construction. Extended replacement cost offers additional protection that goes beyond the policy limits.
State law doesn’t require homeowners to buy insurance, but your mortgage company will likely require it. However, without it, you’ll have to pay for rebuilding costs out of your own pocket, which could be financially devastating. It also offers liability protection to cover legal fees and any settlements if someone sues you after injuring themselves on your property.
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- Better Business Bureau. "State Auto." Accessed February 4, 2023
- J.D. Power. "Bundle Fumble? Rising Auto Insurance Premiums are Killing Home Bundles, J.D. Power Finds." Accessed February 4, 2023
- Better Business Bureau. "Liberty Mutual." Accessed February 4, 2023
- AM Best. "Fremont Insurance Company." Accessed February 4, 2023
- Department of Insurance and Financial Services. "How are rates developed?." Accessed February 4, 2023