Best homeowners insurance companies in Michigan for 2024

Compare the best homeowners insurance companies in Michigan

Proprietary rate data provided by Quadrant Information Services, customer satisfaction scores from the 2024 J.D. Power U.S. Home Insurance Study and other factors such as coverage and discount availability points to USAA, Allstate, State Farm, The Hanover and Farmers as some of the best homeowners insurance companies in Michigan. If you are getting quotes for Michigan home insurance, you might want to add these companies to your list:

The top 5 home insurance companies in Michigan

Additional Michigan home insurance companies to consider

Aside from these top options for Michigan homeowner’s insurance listed above, there are some other providers to consider — like Frankenmuth and Hastings Mutual. While they didn’t make it in the top five providers, we believe they could offer the right protections and coverage for certain Michigan homeowners.

Frankenmuth

Hastings Mutual

How Bankrate chose the best home insurance companies in Michigan

To find the best homeowners insurance companies in Michigan, we first examined average annual premiums for major carriers in the Great Lakes state to find the cheapest coverage. However, the best insurance company is not necessarily the least expensive, so we looked to other factors such as coverage add-ons, discount availability, mobile app accessibility, third-party scores and financial strength ratings. Then, we converted these metrics into a Bankrate Score that ranges from 0.0 to 5.0 (with 5.0 being the highest possible rating). Our goal is to distill a wealth of information into a score that’s easy for shoppers to understand while also providing a comprehensive view of an insurance provider.

Cheapest home insurance companies in Michigan

Of the popular home insurance providers in Michigan, these are the carriers that have the lowest premiums, on average. In the table below, you’ll find them listed starting with the cheapest coverage from Auto-Owners.

How Bankrate chose the cheapest home insurance companies in Michigan

Our selections for the cheapest home insurance companies in Michigan represent the larger and more popular insurers available in the state. Premiums can still vary by homeowner depending on their desired coverage limits and endorsements.

How to get cheap Michigan home insurance

Although homeowners insurance isn’t mandated by law, your mortgage company will almost certainly require you to carry it if you’re financing your house. But even if you own your home outright, a home is likely one of the most significant purchases you make in your lifetime, and a robust home insurance policy can provide vital financial protection for this investment. However, just because homeowners insurance is important doesn’t mean it needs to break the bank. Here are some steps you can take to find the best cheap home insurance in Michigan:

1. Determine your coverage needs: Figuring out how much coverage you need may be the first step when looking for the best Michigan homeowners insurance companies. Although lower limits and fewer endorsements may afford you a lower rate, you could leave yourself vulnerable to a hefty out-of-pocket expense if you experience a claim while underinsured. At the same time, if you purchase limits higher than you need or add endorsements that don’t make sense for your circumstances, you might end up paying more for your policy than necessary. When in doubt, speak with a licensed agent for some guidance before you request quotes.
2. Establish your priorities: Outside of coverage options, you may want to consider what you’re looking for in your home insurance company. Are you most concerned with customer service? If so, it may be a good idea to seek out carriers with high third-party customer service scores issued by J.D. Power. Or, maybe, you don’t like calling contact centers and would rather handle your policy needs online. If that’s the case, you might tailor your search to companies that offer a highly-rated mobile app or self-service customer portal. Knowing what benefits and perks you’re looking for can help narrow down the carriers from which to request quotes.
3. Request quotes: When you have a good sense of what your coverage needs and priorities are, you will want to gather quotes from several carriers. Don't assume that the first quote you receive is going to be the lowest — you may be surprised to find that you'll end up with a range of prices for exactly the same coverage. Make sure that you are asking for the same coverage limits and types of coverage from each insurer so that you have an apples-to-apples comparison. Also ensure that your quote includes any discounts for which you are eligible for, since they can have a significant impact on your final premium rate. Many insurers offer quotes directly from their websites; others may require you to talk to an agent to receive a quote.
4. Take advantage of savings opportunities: Each insurance company offers its own set of unique discounts, and depending on what you qualify for, you could save a significant amount of money. You may want to ask your agent to look over your quote to make sure you aren’t missing any discounts that apply to you.

Best home insurance discounts in Michigan

When you’re requesting quotes from the best Michigan homeowners insurance companies, you may want to look out for these common discounts to help you save:

How to save on home insurance policy renewals in Michigan

Once you already have a home insurance policy, there are a few ways you can try to lower your premium when it comes up for renewal:

• Limit your claims: Try to limit the number of claims you make to keep your home insurance premiums lower.
• Review your coverage limits: Make sure you have adequate coverage for your home, but you may be able to save on your premiums if you decide to lower your coverage limits
• Make home improvements: If you’ve made improvements to your home’s security or structure since you took out your policy, you could make your home less risky to insure and qualify for lower premiums

How much is home insurance in Michigan?

A homeowners insurance policy with $300,000 in dwelling coverage costs an average of $2,040 per year in Michigan, which is nearly 11 percent less than the national average annual cost of home insurance of $2,304. On average, home insurance in Michigan is slightly more expensive than in neighboring states. For instance, the average cost of $300,000 in dwelling coverage is $1,717 per year in Indiana and $1,312 per year in Ohio. Michigan home insurance may be costlier due to its severe winters that bring an increased risk of damage from snow, sleet and ice.

Michigan homeowners insurance rates by city

Home insurance rates in Michigan can vary by city, so where you live within the state can further determine what your monthly premium is. Take a look at the map and tables below to find out what home insurance rates look like in your city.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Michigan?

It’s important to understand what standard home insurance policies in Michigan cover so you can identify any additional areas of coverage you may need. Consider reviewing coverage details thoroughly so you can tailor the policy through additional coverage or endorsements to keep you best protected. Here are some of the common types of damage that homeowners deal with.

• Wind and hail damage: Wind and hail storms frequently occur in Michigan and in severe cases, they can cause damage to homes. Many home insurance policies will include protection for wind and hail damage, though make sure to review policy details carefully and secure an additional policy if necessary.
• Theft: Those living in larger metropolitan areas of Michigan like Detroit may face an increased risk of damage from burglary or vandalism, though this should be covered by most policies.

Additional home insurance coverage types in Michigan

An important part of finding a policy that works for you is tailoring your coverage package to meet your needs. A strategy to tackle this is to consider the biggest homeowners insurance risks in your specific region.

While extreme weather and natural disasters may not be as common in Michigan, homeowners in the state may want to be prepared for a wide array of weather events that could lead to home damage on a smaller scale. With hot summers and cold winters, the weather in this state can change drastically throughout the year. You could also experience a loss through theft or vandalism if you live in a high-crime area. Additionally, if you live near one of the Great Lakes, wind may be a concern.

With that in mind, you may want to consider adding the following endorsements to your Michigan homeowners insurance, depending on your specific situation:

• Flood insurance: Flood damage is not covered by a standard homeowners insurance policy and coverage typically requires its own policy, although some companies offer the coverage as an endorsement. If you have a mortgage or home loan and are in a designated flood zone, your lender may require you to buy flood insurance. Flood policies are available through the federally-backed NFIP and dozens of private flood insurers. All parts of Michigan have some degree of flood risk, but the Northern Peninsula and Southeastern part of the state carry the most significant risk.
• Water backup coverage: This coverage is usually offered as an endorsement and provides financial protection for the damage caused by water backing up in a sewer or drain line or if your sump pump fails. This type of damage is relatively common in basements and crawl spaces, but it can happen from any water line in the house.
• Identity theft coverage: As more personal information is stored online, it is becoming easier for thieves to steal your identity and cause you financial and reputational harm. More than 24,000 cases of identity theft were reported in Michigan in 2020. This endorsement helps provide coverage for the costs of restoring your stolen identity.

Because Michigan has such unique factors for homeowners, with hot summers, long winters and lots of water, working with a professional insurance agent to help you decide what coverage options are appropriate for your situation might be beneficial.

Common Michigan home insurance problems

Michigan homeowners may have seen the cost of home insurance policies rising over recent years along with general widespread inflation across the economy. Paired with rising cases of severe and inclement weather, it may be challenging for homeowners in the state to secure an affordable policy that provides them with adequate financial protection. Here are some of the ongoing challenges to homeowners in Michigan when securing a home insurance policy.

• Rising rates: Michigan home insurance rates are increasing at a faster pace than in most other states. According to the National Association of Realtors, Michigan home insurance rates are expected to go up by 14 percent in 2024. Increases in the cost of building materials and labor costs are making claims payouts more expensive for insurance companies. In turn, companies pass these expenses on to policyholders by raising premiums.
• Severe weather: Michigan undergoes severe weather throughout the year, like cold and snowy winters and hot summers, so it may be challenging for homeowners to find comprehensive coverage that protects them from each of these risks without resulting in costly premiums or add-ons

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.