Finding the Best Homeowners Insurance in Michigan
In the wake of the COVID-19 pandemic, people are still buying and selling homes, and perhaps more surprisingly, house prices in Michigan have risen over the last few months (according to freep.com). Whether you’ve just secured your new home or you’re looking for cheaper providers of home insurance, a quick search online for Michigan homeowners insurance quotes will bring up lots of reviews, quote providers and companies offering you their insurance. Deciphering through this overwhelming quantity of information can be a real chore. So, how can you easily find the best homeowners insurances in Michigan? We’ve done the hard work for you by putting all the necessary information here. If you’re looking for cheap homeowners insurance in Michigan or thinking of reducing your coverage amount to make your premiums lower, it’s worth thinking about what the potential risks are in Michigan, where some parts of The Great Lake State are now more susceptible to flooding. While it’s true that you could save on your insurance premiums by taking out less coverage, many homeowners in Michigan who have taken out less coverage and who have needed to make claims on their home insurance haven’t been able to cover the damage or replacement costs because these amounted to more than their coverage amount. With these things in mind, allow us to guide you towards finding the right policy for you and your home.
| Michigan Homeowners Insurance Cost Broken Down | Costs |
|---|---|
| Yearly Cost of Homeowners Insurance in Michigan | $694.00 |
| Costs Per Month for Homeowners Insurance in Michigan | $57.83 |
How Much is Homeowners Insurance in Michigan
Before finalizing your home insurance policy, you will be asked to choose how much dwelling coverage you want to take out and to select a deductible. The deductible is how much you would pay before your policy is activated. Dwelling coverage pays the cost of repairing your home. It’s important to insure your home based on its replacement cost. That’s the amount you need to rebuild it if it’s destroyed or damaged, and this is not equal to its market value. Taking out coverage equal to your home’s replacement cost offers more protection because the cost of building a home is normally more than its market value. For a typical dwelling coverage of $200,000, a $1,000 deductible and $100,000 of liability coverage, the average cost of home insurance in Michigan is $1,073, or $90 per month, which isn’t too far away from the national average of $1,288. Homeowners insurance rates in Michigan are on average $155 less than the nationwide average, or around 13 percent lower. The most expensive city for homeowners insurance in Michigan is Detroit, with an annual premium of $2038, or $170 per month; and the least expensive city is Ann Arbor, where the annual premium is $794, or $66 per month. It’s also worth remembering that homeowners insurance doesn’t cover damages suffered as a result of floods. Michigan ranked 18th out of all states and the District of Columbia, so it’s not worth skipping out on flood insurance. You will need to purchase flood insurance through the National Flood Insurance Program.
| City in Michigan | Monthly Costs | Yearly Costs |
|---|---|---|
| Ann Arbor, MI | $84.67 | $1,016.00 |
| Battle Creek, MI | $103.33 | $1,240.00 |
| Bay City, MI | $99.67 | $1,196.00 |
| Canton Township, MI | $108.92 | $1,307.00 |
| Clinton, MI | $107.58 | $1,291.00 |
| Commerce Township, MI | $110.33 | $1,324.00 |
| Dearborn, MI | $149.33 | $1,792.00 |
| Dearborn Heights, MI | $148.33 | $1,780.00 |
| Detroit, MI | $245.17 | $2,942.00 |
| East Lansing, MI | $96.50 | $1,158.00 |
| Eastpointe, MI | $126.33 | $1,516.00 |
| Farmington Hills, MI | $114.50 | $1,374.00 |
| Flint, MI | $194.42 | $2,333.00 |
| Grand Blanc, MI | $116.58 | $1,399.00 |
| Grand Rapids, MI | $96.83 | $1,162.00 |
| Holland, MI | $91.00 | $1,092.00 |
| Holland, MI | $91.00 | $1,092.00 |
| Jackson, MI | $108.50 | $1,302.00 |
| Kalamazoo, MI | $100.42 | $1,205.00 |
| Kentwood, MI | $96.17 | $1,154.00 |
| Lansing, MI | $102.75 | $1,233.00 |
| Lincoln Park, MI | $158.25 | $1,899.00 |
| Livonia, MI | $110.83 | $1,330.00 |
| Macomb Township, MI | $105.92 | $1,271.00 |
| Midland, MI | $96.17 | $1,154.00 |
| Muskegon, MI | $121.08 | $1,453.00 |
| Novi, MI | $106.17 | $1,274.00 |
| Orion, MI | $119.50 | $1,434.00 |
| Pontiac, MI | $160.00 | $1,920.00 |
| Port Huron, MI | $98.08 | $1,177.00 |
| Portage, MI | $92.33 | $1,108.00 |
| Redford, MI | $165.58 | $1,987.00 |
| Rochester Hills, MI | $108.08 | $1,297.00 |
| Roseville, MI | $126.25 | $1,515.00 |
| Royal Oak, MI | $105.75 | $1,269.00 |
| Saginaw, MI | $142.50 | $1,710.00 |
| Saginaw, MI | $142.50 | $1,710.00 |
| Shelby, MI | $104.75 | $1,257.00 |
| Southfield, MI | $166.75 | $2,001.00 |
| Southgate, MI | $135.42 | $1,625.00 |
| St. Clair Shores, MI | $108.58 | $1,303.00 |
| Sterling Heights, MI | $110.42 | $1,325.00 |
| Taylor, MI | $143.50 | $1,722.00 |
| Troy, MI | $101.75 | $1,221.00 |
| Warren, MI | $132.83 | $1,594.00 |
| Waterford, MI | $127.92 | $1,535.00 |
| West Bloomfield, MI | $122.17 | $1,466.00 |
| Westland, MI | $133.08 | $1,597.00 |
| White Lake, MI | $114.83 | $1,378.00 |
| Wyoming, MI | $92.08 | $1,105.00 |
| Ypsilanti, MI | $111.25 | $1,335.00 |
Michigan Homeowners Insurance Laws
Home insurance is not required by law in the state of Michigan. If you financed or will be financing your home with a mortgage, your mortgage provider may still require you to purchase homeowners insurance to protect their financial interest in your property. Under Michigan homeowners insurance laws, if your property is worth less than $35,000, an insurance provider can rightfully deny you a replacement cost policy. Also, if your property is worth less than $15,000, you can be denied a repair cost policy. You can also be turned down if you refuse to buy a policy that will cover at least 80% of your property's replacement cost or 100% of the property's market value for a repair cost policy. Additionally, there are many reasons an insurance company can legally deny your coverage; however, there are also many reasons why an insurance provider is not permitted to refuse your coverage. You cannot be refused coverage based on your home location, the type of neighborhood you live in, the age of your home, or your refusal to buy auto insurance with the same provider. If an insurance company is found to deny you coverage for any of these reasons, they could be issued with state penalty charges.
What Does Homeowners Insurance Cover in Michigan
There are several different types of homeowners insurance policies in Michigan. What you will be covered for depends on who your provider is and what kind of coverage you purchase from them. Here we outline what each type of policy will cover you for. Broad (HO-2) covers damage to the property and possessions from specific perils listed in the policy. This includes but is not limited to explosions, fire, lightning, windstorm, hail, riot, civil commotions, theft, vandalism, falling objects, smoke, and damage from a vehicle or aircraft. All Risk (HO-3), the most common type of homeowners policy, covers your dwelling against all risks or perils except ones specifically excluded in the policy. The home’s contents are generally covered against perils named in the policy. Condominium (HO-6) home insurance policies provide coverage based on the value of the owner’s personal property or contents. An HO-6 policy also provides coverage for that part of the dwelling that belongs to the condominium owner; this includes alterations, appliances, fixtures and improvements that are part of the building or are contained within the building. Both the dwelling and the contents are covered against named perils. For an additional premium, you can choose add-ons for your policy. Add-ons are sometimes termed endorsements, floaters, or riders. These can extend your coverage to specific items in your home.
| Costs of Home Insurance in Michigan by County | Monthly Average Costs | Yearly Average Costs |
|---|---|---|
| Bay County, MI | $99.67 | $1,196.00 |
| Calhoun County, MI | $103.33 | $1,240.00 |
| Genesee County, MI | $155.50 | $1,866.00 |
| Ingham County, MI | $99.63 | $1,195.50 |
| Jackson County, MI | $108.50 | $1,302.00 |
| Kalamazoo County, MI | $96.38 | $1,156.50 |
| Kent County, MI | $95.03 | $1,140.33 |
| Lenawee County, MI | $107.58 | $1,291.00 |
| Macomb County, MI | $120.88 | $1,450.60 |
| Midland County, MI | $96.17 | $1,154.00 |
| Muskegon County, MI | $121.08 | $1,453.00 |
| Oakland County, MI | $123.29 | $1,479.43 |
| Oceana County, MI | $104.75 | $1,257.00 |
| Ottawa County, MI | $91.00 | $1,092.00 |
| Saginaw County, MI | $142.50 | $1,710.00 |
| St. Clair County, MI | $98.08 | $1,177.00 |
| Washtenaw County, MI | $97.96 | $1,175.50 |
| Wayne County, MI | $152.99 | $1,835.88 |
Top Rated Homeowners Insurance Companies in Michigan Based on Ratings
Top-rated Home insurance companies in Michigan often have a high A.M. Best financial strength rating and are able to handle any claim, regardless of its size. These providers are often huge companies with lots of available finance. Additionally, a high J.D. Power rating mirrors strong customer satisfaction. With an A++ A.M Best financial strength rating, State Farm offers a broad range of coverage options, including frozen plumbing and the weight of ice, snow or sleet. State Farm homeowners insurance in Michigan also has a 4 out of 5 J.D. Power rating. Auto-owners insurance also has an A++ A.M Best rating and a 4 out of 5 J.D. Power rating, and it also offers the most affordable premiums in the state of Michigan. The downside with auto-owners is their limited online capabilities. While you can pay bills and track claims online, you have to contact them to get a quote and purchase a policy. You also need to call them to file a claim. Allstate, a more expensive home insurance provider, does have an A+ A.M. Best financial rating and a 3 out of 5 J.D. Power rating. While their ratings are perhaps not as high as the other aforementioned providers, Allstate does offer a range of discount options, such as their RateGuard add-on, which stops your premiums from going up when you make a claim. You can also qualify for a no-claim discount when you switch to them, and you’ve not made claims with other providers.
| Michigan Home Insurance Company | JD Power Rating | NAIC Rating |
|---|---|---|
| State Farm Ratings for Homeowners Insurance in Michigan | A++ | 0.2 |
| Auto-Owners Insurance Ratings for Homeowners Insurance in Michigan | A++ | 0.21 |
| Auto Club Insurance Association Ratings for Homeowners Insurance in Michigan | A- | 0.36 |
| Allstate Corp Ratings for Homeowners Insurance in Michigan | A+ | 0.31 |
| The Hanover Insurance Group Ratings for Homeowners Insurance in Michigan | A | 0.18 |
| Michigan Farm Bureau Ratings for Homeowners Insurance in Michigan | A | 0.19 |
| Liberty Mutual Ratings for Homeowners Insurance in Michigan | A | 0.53 |
| Farmers Insurance Ratings for Homeowners Insurance in Michigan | A | 0.39 |
| USAA Ratings for Homeowners Insurance in Michigan | A++ | 0.33 |
| Frankenmuth Insurance Ratings for Homeowners Insurance in Michigan | A | 0 |
How to Lower Homeowners Insurance in Michigan
With declining relative incomes and shrinking savings at these times of hardship, it may be necessary for you to start saving money on your homeowner's insurance. Don't assume that this will mean you need to opt for less coverage. Here are 5 tips and tricks that you can use to lower your homeowner's insurance in Michigan without reducing coverage. Renovate your plumbing, wiring and roofing. This can reduce your premiums and increase the value of your home. Increase your deductible amount. By paying a greater excess amount, you can reduce your premiums. Add a home security system. This can reduce your premiums and add value to your home. Contact your current provider and ask about any discounts or loyalty schemes they offer. It's in your provider's best interests to keep you and prevent you from switching to another company. The home insurance market is a competitive one, and this drives down prices. If your current provider isn't willing to offer you anything extra, get a quote from another company and see if you can make savings this way.
Compare Homeowners Insurance in Michigan Before Buying
Shopping for the best homeowners insurance in Michigan for you starts with making sure you’re taking out the right amount of coverage, which depends on how much it would cost to rebuild your home if the worst was to happen. You’ll also need to consider how much of the deductible you’re willing to pay in the event of a claim and whether you need extra insurance for valuables. You might also want policy add-ons to ensure you’re covered for everything that you feel is required to be covered under your policy. It’s smart to compare homeowners insurance quotes in Michigan, and hopefully, with the metrics, we have used to compare different companies, such as the A.M. Best and J.D. Power ratings, you have found a suitable and affordable homeowner insurance company for your home in Michigan.