While Michigan doesn’t see many natural disasters, the state’s frigid winter weather and susceptibility to severe storms in the spring and summer make it essential for residents to have a quality homeowners insurance policy.
But despite having all four seasons and numerous weather-related risks, the average cost of homeowners insurance in Michigan is just $1,422 per year or $119 a month. This is around 10% lower than the national average of $1,754 per year.
But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Michigan.
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Compare the best homeowners insurance companies in Michigan
According to our analysis, State Farm, Cincinnati Insurance, Farmers, the Hanover and AAA are the best homeowners insurance companies in Michigan.
Policygenius analyzed thousands of quotes the largest Michigan insurers to find the average cost of homeowners insurance at each company. We then looked at J.D. Power customer satisfaction scores and compared that with the coverage needs of the state's residents to find the best homeowners insurance in Michigan.
Company | Average monthly cost | Policygenius rating |
$140 | 4.8 out of 5 | |
$143 | 4.8 out of 5 | |
$116 | 4.5 out of 5 | |
$219 | 4.3 out of 5 | |
$87 | 4.3 out of 5 |
2024 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
Offers flood insurance
Offers earthquake insurance
Wind/hail deductible
Offers wildfire insurance
Why we chose it
State Farm is one of the best home insurance companies in Michigan thanks to its large selection of policy options, high customer service marks, and industry-best financial stability ratings.
Pros and cons
Pros
Top-tier coverage add-ons, including extended replacement cost coverage
High customer satisfaction and financial strength ratings
Cons
No discounts for first-time homebuyers
Higher rates than average in Michigan
More details
Why we chose State Farm
State Farm is the best home insurance company in Michigan, especially if you want to add coverage to a basic policy. State Farm lets homeowners get extended replacement cost coverage for their homes, replacement cost coverage for their personal property, water backup protection, and more.
State Farm's customer service is highly rated, too. The company has received high ratings from policyholders, according to J.D. Power’s 2022 customer satisfaction, claims, and digital experience surveys. It has also received the highest rating possible from A.M. Best for financial strength and stability.
How do State Farm home insurance rates compare to the Michigan average?
The average cost of home insurance from State Farm in Michigan is $1,683 per year, which is 18% more expensive than the statewide average.
How to get a quote
Online through State Farm or by contacting your local State Farm agent.
2024 Policygenius award winner
Cincinnati Insurance
4.8
Bundle home & auto
Mobile app
Good student discount
New homebuyer discount
Offers classic car insurance
Offers earthquake insurance
Offers extended replacement cost
Offers gap coverage
Offers wildfire insurance
Why we chose it
Cincinnati Insurance is one of the best home insurance companies in Michigan if your home is worth at least $750,000. If you have a high-value home, Cincinnati Insurance is a great choice for its range of coverage offerings and affordable rates.
Pros and cons
Pros
Earns 5-star ratings for customer service, financial stability, and coverage options
Offers a lot of valuable add-ons, including extended replacement cost coverage
Cons
Best coverage only available to higher-value homes
No online quote tool
More expensive than average in Michigan
More details
Why we chose Cincinnati Insurance
Cincinnati Insurance is one of the top home insurance companies in Michigan for its Executive Select Plan. If your house is worth at least $750,000, you could add extended replacement cost coverage for your home, replacement cost coverage for your personal property, water backup protection, identity theft coverage, and more to your policy.
While Cincinnati Insurance's home insurance rates are more expensive than average in Michigan, the company also offers a few discounts, like a bundling and new home discount, that could offset the its higher rates.
How do Cincinnati Insurance rates compare to the Michigan average?
We found that the cost of home insurance from Cincinnati Insurance in Michigan is $1,064 per year, which is 21% more expensive than average.
How to get a quote
Find an agent via Cincinnati Insurance's website
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Farmers is one of the best home insurance companies in Michigan for those who want to add coverage to their policies. Farmers also has a range of discounts, slightly cheaper-than-average rates, and high claims satisfaction scores.
Pros and cons
Pros
Optional extended or guaranteed replacement cost dwelling coverage
Receives few complaints from policyholders and has a high claims satisfaction score
Lots of available discounts
Cons
Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys
Rates are about average in Michigan
More details
Why we chose Farmers
Farmers is one of the best home insurance companies in Michigan, especially if you want to add coverage to a basic policy. Optional coverages from Farmers include guaranteed or extended replacement cost coverage, water backup protection, and a personal articles floater.
Farmers also earned a high score in J.D. Power’s 2022 claims satisfaction study (though it scored below average on J.D. Power’s overall customer satisfaction and digital experience surveys). Plus, Farmers receives fewer complaints than average, according to the National Association of Insurance Commissioners.
Farmers is one of the best companies for bundling home and auto coverage (you could save up to 18% on your premiums by bundling). The company also offers more than a dozen other discounts, many of which are easy for most homeowners to qualify for.
How do Farmers home insurance rates compare to the average in Michigan?
The average cost of Farmers home insurance in Michigan is $1,393 per year, which is 2% cheaper than the state's average annual premium.
How to get a quote
Online through Farmers
2024 Policygenius award winner
The Hanover
4.3
Bundle home & auto
Good student discount
Mobile app
New homebuyer discount
Why we chose it
The Hanover home insurance policies come with a slew of quality coverage add-ons and high customer service marks — though coverage from the Hanover can cost much more than average.
Pros and cons
Pros
Offers three tiers of coverage for all types of homes, including a specialized policy for high-value homes
Received 85% fewer complaints in 2021 according to the NAIC complaint index
Mobile app allows you to manage your policy, contact your agent, and report claims on the go
Cons
Rates are much higher than average in Michigan
No online quote tool or live-chat feature on its website
More details
Why we chose it
The Hanover is one of the best home insurance companies in Michigan, especially for buyers who value highly-rated customer service. According to the National Association of Insurance Commissioners, the Hanover receives only a fraction of the complaints expected for its size.
We also like the number of coverages that the Hanover offers. For example, homeowners can add protection to their basic policies, including guaranteed and extended replacement cost coverage, valuable items coverage, equipment breakdown coverage, and water backup protection.
How do the Hanover home insurance rates compare to the Michigan average?
The average cost of home insurance from the Hanover in Michigan is $2,628 per year, which is 85% more expensive than the statewide average.
How to get a quote
You can get a home insurance quote by contacting a local Hanover insurance agent.
2024 Policygenius award winner
AAA
4.3
New homebuyer discount
Mobile app
Bundle home & auto
All 50 states
Offers earthquake insurance
Offers flood insurance
Offers extended replacement cost
Why we chose it
AAA is among the best home insurance companies in Michigan for its cheap rates (and its range of discounts), coverage options, and membership extras offered by AAA.
Pros and cons
Pros
Affordable rates, plus 15+ home insurance discounts available
20+ policy coverages and add-ons
Slew of other perks and discounts that come with AAA membership
Cons
AAA membership required to purchase home insurance
Coverages, discounts, and claims experience will vary by region
Below-average customer satisfaction scores
More details
Why we chose it
AAA is one of the best homeowners insurance companies in Michigan. The company offers cheaper-than-average rates for Michigan homeowners, plus more than one dozen discounts (like a non-smoking discount, auto-pay discount, and paperless billing discount) that can lower your rates even more.
Besides low rates, AAA also offers a range of coverage options that you can add to a basic policy. AAA's add-ons include extended and guaranteed replacement cost coverage, water backup protection, and all of the perks that come with a AAA membership.
How do AAA home insurance rates compare to the Michigan average?
The average cost of AAA home insurance in Michigan is $1,040 per year, which is around 27% cheaper than the annual statewide average.
How to get a quote
Online or by calling AAA. Keep in mind that membership is required to get a home or auto insurance quote AAA.
How much is homeowners insurance in Michigan?
The average cost of homeowners insurance in Michigan is $1,422 per year, or $119 a month, for an insurance policy with $300,000 in dwelling coverage. This means insurance in Michigan is 19% cheaper than the national average per year.
Michigan homeowners insurance rates by city
We calculated the cost of home insurance in Michigan's largest cities and found that Ann Arbor is the cheapest big city for homeowners insurance in the state, while Detroit is the most expensive.
Here’s a look at the average cost of home insurance in the 20 largest cities in Michigan.
City | Average monthly cost | Average annual cost | Difference from state average (%) |
|---|---|---|---|
Detroit | $194 | $2,327 | 64% |
Grand Rapids | $102 | $1,219 | -14% |
Warren | $131 | $1,576 | 11% |
Sterling Heights | $115 | $1,382 | -3% |
Ann Arbor | $100 | $1,205 | -15% |
Lansing | $107 | $1,286 | -10% |
Dearborn | $147 | $1,760 | 24% |
Livonia | $121 | $1,454 | 2% |
Troy | $113 | $1,354 | -5% |
Westland | $133 | $1,595 | 12% |
Farmington Hills | $122 | $1,462 | 3% |
Flint | $166 | $1,988 | 40% |
Wyoming | $106 | $1,272 | -11% |
Rochester Hills | $113 | $1,357 | -5% |
Southfield | $155 | $1,861 | 31% |
Kalamazoo | $105 | $1,256 | -12% |
Novi | $133 | $1,594 | 12% |
Taylor | $139 | $1,667 | 17% |
Dearborn Heights | $143 | $1,721 | 21% |
Pontiac | $154 | $1,842 | 30% |
Michigan homeowners insurance rates by coverage amount
The table below highlights the average annual premium in Michigan for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.
Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $711 |
$200,000 | $1,056 |
$300,000 | $1,422 |
$400,000 | $1,802 |
$500,000 | $2,260 |
Cheapest homeowners insurance companies in Michigan
Based on our analysis of home insurance rates in every one of the state's ZIP codes, we found that the cheapest home insurance companies in Michigan are Westfield Insurance, AAA, Frankenmuth Insurance, Hastings Mutual, and Pioneer State Mutual.
Company | Average annual cost |
|---|---|
Westfield Insurance | $965 |
$1,040 | |
Frankenmuth Insurance | $1,118 |
Hastings Mutual Insurance | $1,247 |
Pioneer State Mutual | $1,256 |
$1,372 | |
$1,393 | |
$1,484 | |
$1,587 | |
$1,683 | |
$1,717 | |
$1,890 | |
$2,628 | |
$4,348 |
Cheapest Michigan homeowners insurance if you have poor credit
Insurance companies use your credit score as a factor in determining your premium, with lower scores resulting in higher rates. While they don’t look into your whole credit report, they will use your payment and credit history as an indicator of whether you're likely to file claims or pay your bills on time.
Not all insurers rely on credit scores, however, so it’s still possible to get an affordable rate if you have a low credit score.
With an average rate of $1,510 per year, Frankenmuth Insurance has the cheapest home insurance rates in Michigan for a homeowner with poor credit.
Company | Average annual cost |
|---|---|
Frankenmuth Insurance | $1,510 |
Hastings Mutual Insurance | $1,670 |
Westfield Insurance | $1,730 |
AAA | $1,731 |
USAA | $1,795 |
Pioneer State Mutual | $1,951 |
Progressive | $2,036 |
Auto-Owners Insurance | $2,195 |
Pure Insurance | $2,266 |
Cincinnati Insurance | $2,788 |
State Farm | $2,886 |
Farmers | $3,909 |
Chubb | $4,910 |
Farm Bureau Insurance | $7,162 |
The Hanover | $7,178 |
Cheapest Michigan homeowners insurance if you have an older home
It can cost a lot to insure older homes. That's because they're more prone to structural damage than new homes. Older homes are also often constructed out of materials and with features that would be expensive to replace if they were damaged.
With an average annual premium of $1,080, AAA offers the cheapest home insurance rates in Michigan for a home over 100 years old.
Company | Average annual cost |
|---|---|
AAA | $1,080 |
Westfield Insurance | $1,088 |
Frankenmuth Insurance | $1,149 |
Hastings Mutual Insurance | $1,247 |
Pioneer State Mutual | $1,290 |
USAA | $1,423 |
Progressive | $1,457 |
Farmers | $1,488 |
Pure Insurance | $1,587 |
State Farm | $1,685 |
Chubb | $1,705 |
Cincinnati Insurance | $1,714 |
The Hanover | $3,024 |
Farm Bureau Insurance | $5,909 |
Cheapest Michigan homeowners insurance if you have a history of claims
If you have multiple claims on your record, you'll typically pay more for home insurance, as insurers will consider you more likely to file future claims than a homeowner with a spotless claims history.
With an average annual premium of $1,281, Westfield Insurance offers the cheapest home insurance rates in Michigan if you've filed three claims within a five-year period.
Company | Average annual cost |
|---|---|
Westfield Insurance | $1,281 |
AAA | $1,786 |
Pure Insurance | $1,887 |
State Farm | $1,922 |
Progressive | $1,951 |
Chubb | $2,056 |
USAA | $2,056 |
Hastings Mutual Insurance | $2,456 |
Cincinnati Insurance | $2,681 |
Farmers | $2,765 |
Frankenmuth Insurance | $3,044 |
Pioneer State Mutual | $4,505 |
The Hanover | $4,562 |
Farm Bureau Insurance | $11,039 |
Coverage options in Michigan
When looking at how much each insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
Before you buy homeowners insurance in Michigan, you should be sure you're protected against the state's severe weather and flooding.
Windstorm insurance
You should be sure that your home is fully protected from the strong winds and occasional hail that can accompany spring and summer storms in Michigan.
While most home insurance policies do cover wind damage (including tornado damage) and hail damage, you should make sure that you'll be able to fully rebuild by adding replacement cost coverage to your policy.
Flood insurance
If you live in a low-lying part of Michigan or a part of the state that's near one of the Great Lakes, your property might be at risk of experiencing flood damage. Despite the risk of flood damage, homeowners insurance policies don't cover floods.
You should consider getting flood insurance if there's a chance your home could be damaged by rising water. A few companies offer flood insurance endorsements or even separate flood insurance policies, but most companies offer coverage through the National Flood Insurance Program (NFIP).
How to buy homeowners insurance in Michigan
Finding the right amount of coverage at the right price may feel overwhelming initially, but it’s quite manageable if you have the right guide. While the cost of home insurance in Michigan is below the national average, shopping around when choosing a policy is still a great way to get the best price.
Here are a few steps to follow as you shop for homeowners insurance in Michigan:
Frequently asked questions
How can I save money on my homeowners insurance?
Many insurance companies offer discounts for bundling home and auto insurance, paying your premium up front, not filing claims, and more. These discounts can add up to big savings on your policy.
What is the lowest average home insurance rate in Michigan?
Westfield Insurance has the lowest average rate in Michigan with an annual cost of $965.
Is it required to have homeowners insurance in Michigan?
Homeowners insurance is not mandated in Michigan, but mortgage lenders usually require it when you apply for a loan. It also makes good financial sense to protect your home and belongings.
How does the crime rate in my area affect my policy?
Areas with a high rate of property crime will see higher home insurance rates due to the increased risk of theft or vandalism. You can offset high premiums by raising your deductible or asking about eligible discounts.
