Best homeowners insurance in Detroit, MI for 2022

Jessica Olivo

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Jessica Olivo

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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The Motor City offers a vibrant experience of culture, food, and music, but its relatively high rate of property crime makes Detroit an expensive city for homeowners insurance

The average cost of homeowners insurance in Detroit is $3,779 per year or $315 a month. This is around 120% higher than the statewide average of $1,712 per year, and about 99% higher than the national average of $1,899. But despite Detroit’s higher-than-average rates, having a homeowners insurance policy is a necessity, and Policygenius can help you find the coverage you need at a price you can afford.

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However, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Detroit.  

Best homeowners insurance companies in Detroit

Auto-Owners Insurance has the lowest home insurance rates in Detroit, with an average yearly cost of $401 — $3,378 less than the city average. State Farm, AAA, and Auto-Owners all received high scores from J.D. Power, which rates companies based on various factors related to customer and claim satisfaction. 

Policygenius analyzed thousands of quotes from the 5 largest Detroit 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 Detroit residents to find the best homeowners insurance in Detroit.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,439

835

Auto-Owners Insurance

$401

831

AAA

$1,874

834

The Hanover

$4,461

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Farm Bureau Insurance of Michigan

$19,490

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State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

State Farm is often recognized for its superior customer service, which is supplemented by the company’s expansive online and mobile resources. Customers can file claims over the phone, through the State Farm mobile app, online, or in person. The State Farm website also provides helpful articles with information on searching for a new house, using a real estate agent, what to expect from a home inspection, and more. 

How to get a quote

Online through State Farm

Auto-Owners Insurance

Auto-Owners Insurance logo

Auto-Owners is the 12th largest home insurance provider in the U.S. thanks to its low rates, numerous discounts, and robust coverage options — including inland flood insurance.

Pros

  • Excellent coverage add-ons, including inland flood insurance, guaranteed replacement cost, and equipment breakdown coverage

  • Flood insurance covers belongings in your basement — a rare find

  • Save on premiums by bundling policies, paying off your mortgage, choosing a high deductible, having a backup generator, and more

Cons

  • Can't file claims online — you must call or visit an agent to get started

Why Auto-Owners Insurance tops our best list

Auto-Owners Insurance makes flood coverage available as an add-on to your homeowners insurance policy, allowing you to have your home and flood insurance in one place. While this coverage option is only available to homes in low and moderate-risk flood zones, it's an excellent add-on for eligible Auto-Owners’ customers in Detroit, where floods are happening more often. 

How to get a quote

Through an Auto-Owners Insurance agent

AAA

AAA logo

While AAA is mostly known for its auto insurance and roadside assistance, it also offers a comprehensive home insurance policy — complete with flood and earthquake insurance add-ons and multiple discounts. But you'll need to be a AAA member to qualify.

Pros

  • Multiple perks and discounts for AAA members

  • Save up to 10% on auto insurance and 25% on home insurance if you combine the two under a companion policy

  • Offers flood and earthquake coverage so you don't have to purchase separate policies elsewhere

  • Excellent customer service ratings

Cons

  • Must be a AAA member to qualify

Why AAA tops our best list

AAA offers customers many ways to save on home insurance, including policy credits toward your deductible if you go an extended period of time without filing a claim. AAA takes an additional $50 off of your deductible every year you go without filing a claim — up to $500. 

How to get a quote

Online through AAA

The Hanover

The Hanover logo

The Hanover offers multiple customizable coverages for every type of home, including a standard policy, an excellent home and auto bundling package, and a policy designed for high-value homes.

Pros

  • Special policy for high-value homes includes a cash settlment option if you decide not to rebuild after a total loss

  • Get up to $100,000 in scheduled property coverage for expensive jewelry, artwork, and more

  • Only pay one deductible when you bundle policies and your home and car are damaged in the same event

  • Excellent coverage add-ons, including guaranteed replacement cost, equipment breakdown, water backup, and matching roof and siding insurance

  • Decent ratings with third-party review sites

  • File claims online or through its mobile app

Cons

  • No information about available discounts online

Why The Hanover tops our best list

If you need more from your policy, The Hanover has an option especially for high-value homes that offers flexible, comprehensive coverage and dedicated customer service. It also offers cash settlements on claims, which gives you the option to rebuild your home or pocket the claim funds and move somewhere else.  

How to get a quote

By calling a Hanover agent

Farm Bureau Insurance of Michigan

Farm Bureau Insurance of Michigan logo

Offering everything from home, auto, and life insurance to farm, business, and crop coverage, Farm Bureau Insurance of Michigan lets you keep all of your policies under one roof — with an added discount to boot.

Pros

  • Offers home, farm, life, crop, auto, and more insurance products to keep all of your policies with the same company

  • Coverage add-ons include replacement cost coverage for your belongings, food spoilage coverage, and debris removal

  • Up to $250 per day in claims expense coverage is included in the base policy

  • Save on premiums by bundling, having a home less than 30 years old, purchasing a policy in advance, and more

Cons

  • Farm Bureau membership required for coverage

  • Minimal information about all of its coverage add-ons available online

  • Can't file claims online — must speak to a representative on the phone

Why Farm Bureau Insurance of Michigan tops our best list

A membership with the Farm Bureau means more than just homeowners insurance. Members also receive benefits and discounts for a variety of goods and services, including health and dental insurance, prescription drugs, and roadside assistance. You can also save on hotels, car rentals, theme park tickets, and more.  

How to get a quote

Through a Farm Bureau agent

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Cheapest homeowners insurance companies by ZIP code in Detroit

Looking at average home insurance costs for 15 of the most popular companies in Detroit, we found that the cheapest home insurance in the city can be found in the 48239 ZIP code (Redford) with Auto-Owners Insurance. The average Auto-Owners Insurance rate in this area is $277 per year, which is 92% less than the city average of $3,779 per year. 

As shown in the table below, homeowners can find the cheapest rates in Detroit with Auto-Owners Insurance, regardless of which ZIP code you live in. 

ZIP code

Company

Average yearly cost

48201

Auto-Owners Insurance

$425

48202

Auto-Owners Insurance

$424

48203

Auto-Owners Insurance

$379

48204

Auto-Owners Insurance

$409

48205

Auto-Owners Insurance

$419

48206

Auto-Owners Insurance

$420

48207

Auto-Owners Insurance

$415

48208

Auto-Owners Insurance

$412

The most affordable areas for homeowners insurance in Detroit

With an average home insurance rate of $2,270 per year, the 48242 ZIP code (Detroit Metropolitan Airport), is the most affordable area for home insurance in Detroit. Houses in these areas have lower values, making them less expensive to insure.  

ZIP code

Average yearly cost

48242

$2,270

48239

$3,215

48243

$3,476

48203

$3,570

48233

$3,607

The most expensive areas for homeowners insurance in Detroit

With an average home insurance rate of $4,109, the 48213 ZIP code is the most expensive area for home insurance in Detroit. Many homes in these areas were built prior to 1940, and older homes are usually more expensive to insure. 

ZIP code

Average yearly cost

48213

$4,109

48211

$4,099

48223

$3,995

48207

$3,967

48209

$3,947

Shopping for homeowners insurance in Detroit

There are several factors to keep in mind when shopping for homeowners insurance in Detroit. Along with being aware of the types of coverage in your policy, it’s important to know how much coverage is appropriate for your home and budget. By balancing your policy options and coverage limits, you can find the insurance that fits your needs. 

In this section, we break down the average annual home insurance rates in Detroit 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 Detroit.

Detroit home insurance costs by coverage amounts

Dwelling coverage is the part of your home insurance that pays to repair or rebuild your home after a covered loss. Your dwelling coverage limit should be based on your home’s replacement value, which takes the cost of construction materials and labor in the Motor City. 

The table below demonstrates how higher dwelling coverage limits typically mean more expensive home insurance. In Detroit, a policy with $100,000 in dwelling coverage costs $1,779 per year, while a policy with $500,000 in coverage has an average yearly cost of $6,090.

Dwelling coverage amount

Average yearly cost

$100,000

$1,779

$200,000

$2,720

$300,000

$3,779

$400,000

$4,858

$500,000

$6,090

Liability coverage is the amount your insurance company will pay if you are found responsible for someone’s injuries or damage to their property. To ensure you are fully covered, this amount should be based on the total value of your assets including your house, vehicles, and liquid assets like cash and certain investments.

Liability coverage amount

Average yearly cost

$100,000

$4,011

$200,000

$4,675

$300,000

$3,779

$400,000

$3,151

$500,000

$3,816

Detroit home insurance costs by deductible amount

Your policy deductible is the amount you’re responsible for paying on each claim before your insurance kicks in. While choosing a higher deductible can save you money on your premium, it also means you’ll be paying more out of pocket before your insurer will reimburse you for a loss.

As seen in the table below, Detroit residents can save around $2,765 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$4,781

$1,000

$3,779

$2,000

$2,016

Home insurance discounts in Detroit

Most homeowners insurance companies offer discounts if you install security systems or other protective devices in your home. When you make your home safer, you are less likely to file a claim, which saves money for the insurance company, too.

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 Detroit with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$3,778

Smoke alarm

$3,774

Burglar alarm

$3,651

Home insurance companies in Detroit for dog owners

Owners of certain dog breeds may see higher home insurance rates since these dogs account for more liability claims than other breeds. 

With an average rate of $401 per year, Auto-Owners Insurance has the cheapest home insurance rates in Detroit for a home with a dangerous dog breed, while Farm Bureau Insurance of Michigan’s average yearly premium of $19,490 is the highest.

Company

Average yearly cost

Auto-Owners Insurance

$401

AAA

$1,874

State Farm

$2,439

The Hanover

$4,538

Farm Bureau Insurance of Michigan

$19,490

Home insurance companies in Detroit for poor credit

Having a low credit score can also lead to higher home insurance rates. Some insurance companies increase rates for people with low credit because they are more likely to file a claim. 

However, not all companies weigh this factor as heavily as others when calculating your rates, so it’s important to shop around and compare policy options and prices from multiple companies.

With an average rate of $3,624 per year, AAA has the cheapest home insurance rates in Detroit for a homeowner with poor credit, while Farm Bureau Insurance of Michigan’s average yearly premium of $23,757 is the highest. 

Company

Average yearly cost

AAA

$3,624

State Farm

$4,188

Auto-Owners Insurance

$6,896

The Hanover

$11,976

Farm Bureau Insurance of Michigan

$23,757

Home insurance companies in Detroit for pool owners

Insurance companies will sometimes charge you higher rates if you have a pool on your property, since they increase the risk of injuries and subsequent liability claims. 

However, not all insurance companies weigh this factor as heavily as others when setting your premiums, so it's possible to find lower home insurance rates by shopping around.

With an average rate of $401 per year, Auto-Owners Insurance has the cheapest home insurance rates for Detroit homes that have a swimming pool, while Farm Bureau Insurance of Michigan’s average yearly premium of $19,490 is the most expensive.

Company

Average yearly cost

Auto-Owners Insurance

$401

AAA

$1,874

State Farm

$2,439

The Hanover

$4,668

Farm Bureau Insurance of Michigan

$19,490

How to buy homeowners insurance in Detroit

Homeowners in Detroit should shop around for home insurance to ensure an adequate coverage and rate comparison. Since there are many factors that go into how much coverage you need as well as how your rate is determined, working with a Policygenius agent can help save you both time and money. 

Here are some steps to follow when shopping for insurance: 

  1. Reach out to a licensed Policygenius agent. A Policygenius agent can answer questions and take the guesswork out of finding the right home insurance policy. Our services are free and won’t have an impact on your credit report.

  2. Ask about Michigan Basic, Michigan’s FAIR plan provider. If you’ve been turned down by traditional insurance companies due to high-risk factors related to your house or location, Michigan Basic might be your best option to make sure your home is covered. 

  3. Consider purchasing flood insurance. Flooding from the Detroit River as well as aging city infrastructure can lead to unexpected water damage. Talk to a Policygenius agent about whether flood insurance is right for your home.

  4. Figure out how much you can afford to pay for your deductible. While a higher deductible will lower the overall cost of your home insurance policy, it also means you’ll be paying more out of pocket on each covered claim. You’ll need to take all of this into consideration when setting your deductible.

  5. Compare quotes from a Policygenius agent. Since insurance companies calculate your rate using different factors, comparing quotes from multiple insurers is the best way to find the best coverage at the cheapest price.

  6. Choose your policy, sign, and pay your first premium. Once you’ve picked out a home insurance policy, all you have to do is sign and make your first premium payment. A Policygenius agent can complete the rest of the paperwork on your behalf.

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Frequently asked questions

What is the average cost of homeowners insurance in Detroit?

The average cost of insurance in Detroit is $3,779 per year, which is 120% higher than the statewide average of $1,712 per year.

What is the best home insurance company in Detroit?

Auto-Owners Insurance offers the cheapest rates in Detroit and has a high J.D. Power score for customer satisfaction, but shopping around will help determine which company is best for you.

Why is home insurance more expensive in Detroit?

Detroit’s high crime rates contribute to the high home insurance costs in the city.

Methodology

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.