While Michigan doesn’t see many natural disasters, the state’s frigid winter weather and susceptibility to severe storms and tornado conditions in the spring 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 $1,712 per year or $143 a month. This is around 10% lower than the national average of $1,899 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.
Best homeowners insurance companies in Michigan
Of the companies we looked at, Auto-Owners Insurance has the lowest rate with an average yearly cost of $241. While this is far cheaper than the other companies listed, both State Farm and AAA have great ratings with J.D. Power, which means they excel in customer service and claim satisfaction. Since your rate is just one aspect of your insurance, it’s important to look at other factors.
Policygenius analyzed thousands of quotes from the 5 largest Michigan insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Michigan residents to find the best homeowners insurance in Michigan.
Why State Farm tops our best list
As noted above, State Farm rates high in customer service and claim satisfaction. It can’t be overstated how important this can be when you’re in the middle of a catastrophe, especially if you need a claim settled as fast as possible. State Farm has options to file claims online, over the phone, through their app, or even in person, which means no matter how you prefer to communicate, a State Farm agent will be available for you.
How to get a quote
Online through State Farm
Why Auto-Owners Insurance tops our best list
Along with being the cheapest home insurance option on our list, Auto-Owners Insurance also has a wide variety of additional coverage options that will ensure your whole house is covered. In case of an electrical power surge, you can add equipment breakdown coverage to help pay for damage to computers, smart devices, washers and dryers, and more. With their identity theft expense coverage, you could receive up to $15,000 to cover the cost of restoring your identity. And their guaranteed replacement cost coverage picks up where your policy leaves off to ensure a full replacement of your home.
How to get a quote
By calling an Auto-Owners Insurance agent
Why AAA tops our best list
AAA not only offers both home and auto insurance, they also provide a AAA Triple Check to review your coverage and identify any areas where you’re not fully covered. Through the free Triple Check program, AAA will also go over any discounts you are eligible for as well as discuss the many benefits of being a AAA member.
How to get a quote
Online through AAA
Why The Hanover tops our best list
The Hanover is renowned for its Hanover Prestige policy, a home insurance policy package that’s tailored to Michiganders who own high-value homes. Along with offering the extra protection required of a high-value home and coverage flexibility to suit the needs of most other homes, Hanover Prestige has its own dedicated customer service representatives and a separate phone number for claims.
How to get a quote
By calling a Hanover agent
Why Farm Bureau Insurance of Michigan tops our best list
For Michigan farmers, this is the one-stop shop for all insurance needs. Not only does Farm Bureau Insurance of Michigan offer home and auto insurance, they are specialized to offer farm and crop insurance. On top of that, Farm Bureau’s coverage is tailored to life in the country, houses on a lake, and mobile homes.
How to get a quote
By calling or requesting an agent online
Cheapest homeowners insurance companies by city in Michigan
Looking at average home insurance costs for the 15 most popular insurers in Michigan, we found that the cheapest homeowners insurance company in the state is Auto-Owners Insurance. In every city across Michigan, Auto-Owners Insurance has the lowest rate. With most cities seeing rates between $200 to $300, it’s possible to get a cheap policy anywhere in the state.
Home insurance rates will vary depending on the age and size of your house, as well as any other factors that might make you a higher risk to insure. In Michigan, some areas might be prone to flooding and larger cities will see higher crime rates, both of which could make your premiums go up. But even if you live in a higher-risk area, there are still ways to save on your homeowners insurance.
Shopping for homeowners insurance in Michigan
When shopping for homeowners insurance, you’ll want to familiarize yourself with the various coverages and how much of each you need. You should also be aware of the various levers you can pull to lower your premium, including increasing your deductible or applying for various discounts.
In this section, we break down the average annual home insurance rates in Michigan for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Michigan.
Michigan home insurance costs by coverage amounts
Dwelling coverage is a coverage type that pays to repair or rebuild your house after a covered loss. This amount is based on your home’s replacement cost, which factors in the price of construction materials and labor. More dwelling coverage generally means higher rates, so it’s best to have a good idea of how much you need so you’re not potentially paying for coverage you don’t need. In Michigan, a home insurance policy with $100,000 in dwelling coverage costs an average of $847 per year, while a policy with $500,000 in coverage costs $2,680 per year — a difference of $1,833 annually.
In the event you’re legally responsible for injuring someone or damaging their property, you can use your personal liability coverage to cover the cost of medical or legal expenses related to the incident. Your liability coverage limit should cover your net-worth, including the value of your home, your vehicles, and any liquid assets.
As the table below demonstrates, the amount of liability coverage you choose does not have a significant impact on your premium. In Michigan, there is only a $2 difference in average annual premiums between a policy with $100,000 in coverage and a policy with $500,000. For this reason, it makes sense to get the largest amount of coverage offered.
Michigan home insurance costs by deductible amount
Your homeowners insurance deductible is the amount you have to pay out of pocket before your insurance will cover a claim. While you can choose a higher or lower deductible depending on your situation, a lower deductible means your monthly or annual premiums will be higher. If you don’t think you’ll be making multiple claims, it’s more cost-effective to choose a high deductible policy.
As seen in the table below, Michigan residents can save around $771 on home insurance by choosing a $2,000 deductible over the $500 option.
Home insurance discounts in Michigan
Insurance companies often provide discounts if you add safety features to your home, since it reduces your likelihood of having to file a costly claim. A security system or smoke alarm can lead to a discount on your insurance and keep your home safe at the same time.
While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Michigan with deadbolts, smoke alarms, or burglar alarms.
Home insurance companies in Michigan for dog owners
Since certain dog breeds have a higher risk of bites and attacks, insurance companies may raise rates due to the increased liability. In some instances, they will not cover bites or attacks by “dangerous” breeds.
With an average rate of $241 per year, Auto-Owners Insurance has the cheapest home insurance rates in Michigan for a home with a dangerous dog breed, while Farm Bureau Insurance of Michigan’s average yearly premium of $5,875 is the highest.
Home insurance companies in Michigan for 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 $1,731 per year, AAA has the cheapest home insurance rates in Michigan for a homeowner with poor credit, while The Hanover’s average yearly premium of $7,178 is the highest.
Home insurance companies in Michigan for pool owners
Swimming pools are considered “attractive nuisances” by insurance companies because they can attract injuries and lead to liability claims. For this reason, having a pool often means paying a higher insurance rate.
Not all companies use pool liability as a reason to increase rates, however, and by shopping around, it’s possible to find an affordable premium.
With an average rate of $241 per year, Auto-Owners Insurance has the cheapest home insurance rates for Michigan homes that have a swimming pool, while Farm Bureau Insurance of Michigan’s average yearly premium of $5,875 is the most expensive.
How to buy homeowners insurance in Michigan
Michigan has many affordable insurance companies available, but cheaper doesn’t always mean better. It’s important to know what you need from a home insurance policy so you can be assured that you have the necessary coverage if you need it.
Here are some steps to help you shop for homeowner insurance in Michigan:
Reach out to a licensed Policygenius agent. Working with a Policygenius agent can take some of the guesswork out of searching for a new policy. Our experts can answer questions and help determine the coverage amounts you need. Our services are free to you and will not impact your credit score.
Ask about Michigan Basic, Michigan’s FAIR plan provider. If you’ve been turned down by traditional insurance companies, ask about purchasing a policy from Michigan Basic to make sure your house is covered.
Figure out how much deductible you can afford. If you choose a high deductible, like $2,000 or $2,500, there’s a good chance you’ll save hundreds on home insurance costs. But that also means you’ll have to pay more out of pocket on each claim.
Compare quotes from a Policygenius agent. If you have poor credit, a “dangerous” dog, or an “attractive nuisance” like a pool or trampoline, make sure you shop around and compare quotes. A Policygenius agent can help you find an insurer with an affordable policy.
Choose your policy, sign it, and pay your first premium. When you’ve made up your mind on a home insurance policy, a Polcygenius agent can help prepare the paperwork for you to sign. Once you make your first payment, you’ll be all set.
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:
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
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.