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Homeowners insurance in Michigan

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Safeco is the cheapest Michigan homeowners insurance company, among carriers surveyed. Its average rate for Michigan homeowners is $1,452 a year, or $121 a month. That’s about $700 less than the state average of $2,153 and nearly $855 less than the national average ($2,305).

Key takeaways: What you’ll learn here

5 best homeowners insurance companies in Michigan

Best for price: Safeco

Safeco was the cheapest Michigan homeowners insurance company among those surveyed, with an average rate of $1,452 a year for $300,000 dwelling and liability coverage. Safeco 4.5 out of five stars for claims handling and value in the Best Home Insurance Companies 2021 rankings for the Midwest, with 88% of customers saying they’d renew their coverage. Safeco offers robust online resources, you can get a quote, manage claims, pay your bill and view or download your policy at the website. If you’d rather speak to an agent, you can find one on the website. In addition to standard coverage and discounts, it offers:

  • Equipment breakdown coverage, for $2 a month, repairs or replaces household appliances after mechanical or electrical breakdowns—which are often not covered under a standard homeowners policy.
  • The Safeco Package includes a single-loss deductible. That means if you have a car insurance policy and it’s damaged in the same event as your home, your auto deductible will be waived.
  • Extended dwelling coverage helps in the event of a catastrophe when there’s soaring demand for building materials and labor that could cause reconstruction costs to increase, leaving policy limits inadequate. That’s where extended dwelling coverage kicks in.
  • Identity theft recovery.
  • The Guaranteed Repair Network program connects you with prequalified experts to create estimates and perform repairs quickly, seamlessly, and with a guaranteed material and labor warranty backed by Safeco.
  • Home warranty coverage in partnership with American Home shield. For a monthly charge, it pays the cost of repairing or replacing your covered items. You can get broad coverage for appliances and components of electrical and plumbing systems or can designate just a few specific items.

Best for customer service: Allstate

Allstate’s average home insurance rate for Michigan ($1,758) is lower than most other major carriers, and in addition, Allstate also offers a host of discounts to make coverage even more affordable. While many of its discounts are standard among most major carriers, it offers a wide range of options with reasonable price breaks. It received four stars (out of five) for customer service, value and for claims among Midwestern homeowners.

In addition to standard coverages, Allstate offers:

  • Water back up coverage if your home is damaged by sump pump or drain back ups.
  • Claim Rateguard, which means Allstate won’t hike your rate for the first claim filed within a five-year period.
  • Identity theft coverage.
  • Special coverage for musical instruments and sports equipment.
  • Green improvement reimbursement covers the additional cost of replacing damaged or destroyed covered items with more energy-efficient items.
  • Extra yard and garden coverage increases the limits for the cost of items like trees, landscaping and riding lawn mowers.
  • Electronic data recovery covers the cost of recovering lost personal computer data, like photos or videos.
  • Added protection that increases limits for business-related items stored in your home, like inventory.
  • HostAdvantage, which covers your belonging when renting out your home.

Discounts include:

  • Claim-free discount saves up to 20% when you switch to Allstate without a recent home insurance claim.
  • Savings for having a good payment history like paying on time and payment type (in-full, escrow, etc.)
  • Multi-policy discount saves up to 25% when you bundle home and auto policies with Allstate.
  • Welcome & loyalty discount saves up to 10% on your home insurance premium when you switch to Allstate, and as long as you're a customer, you'll continue to save 10% every year after that.
  • Home buyer discount gives a price break if you bought a newly constructed home, or if you're a recent homebuyer.
  • Save up to 5% when you set up automatic payments.
  • Theft and fire protection discounts.
  • Save up to 10% on your home insurance premium when you sign up for a new policy at least seven days before your current one expires.

Best for claims: American Family

American Family four out of five stars for claims handling in the Best Home Insurance Companies 2021 rankings for the Midwest, with 94% of all customers surveyed saying they’d renew their coverage. However, it is only available in 19 states. In addition to standard coverage and discounts, American Family offers:

  • Coverage for matching siding, which will pay to replace undamaged siding so that it matches the siding of the damaged area.
  • You can also add coverage for family members living in nursing homes or assisted living homes. The relative’s personal possessions are covered under your policy. Under this benefit, your relative is also covered if he or she causes accidental injuries to others or damages to others’ property. (Injuries to personnel of the nursing home or assisted living facility are not covered by this additional coverage.)
  • American Family now offers a diminishing deductible you can buy that reduces our deductible over time. Your deductible will be cut by $100 yearly at renewal, up to your policy’s maximum limit.

Discounts beyond the typical kind include:

  • Those for smart homes if you have a smart-home security system equipped with sensors that detect smoke, fire and water, you can snag a discount.
  • Generational discount, American Family also has a generational discount – if you’re between the ages of 18 to 30 and your parents have an active home or auto policy with American Family, you could save more with on your home policy

Best for home-auto bundle rates: AAA Memberselect

Memberselect, which is affiliated with AAA Michigan, earned the checkered flag for best home-auto bundle company. Its average bundle rate saved customers 37% ($664) on their coverage, more than other major carriers surveyed in a rate analysis. Its average Michigan home insurance rate is $2,521 is in the middle of the pack in terms of pricing among companies surveyed, but excels in offering a host of coverages and discounts beyond bundling to make it affordable. Memberselect has two coverage plans, Advantage and Ultimate, the former having more basic features. The Advantage Plan includes small-claims forgiveness, a benefit that prevents your policy premiums from increasing due to small claims under $250, while the Ultimate package offers that as well as the following:

  • Claim Forgiveness Ultimate, receive a claim forgiveness opportunity available immediately upon purchase.
  • Claim-free rewards, earn cash back or a renewal credit, 3% up to $50, for remaining claim free every policy term.
  • Disappearing deductible reduces the deductible $50 every term you are claim free, up to a maximum reduction of $500.
  • Service line coverage for loss or damage to exterior underground service lines, such as water, sewer or power.
  • Home systems protection for when systems like central air conditioning, furnaces or water heaters break down.

Optional coverages include:

  • Water damage coverage covers damages to property resulting from water back-ups in sewers, sump pumps and drain.
  • Landscaping and yard coverage helps pay the cost to replace damaged trees, shrubs, plants and lawns.
  • Specialized personal property coverage for super valuable items including silverware, musical instruments, golf equipment, jewelry, watches and so on.
  • Green upgrade coverage for the things that make your home more eco-friendly and energy efficient.
  • Home day care coverage if you run a day care from your home.
  • Home hosting—Incidental rental coverage for temporary rental of your home.

Discounts in addition to bundling include:

  • Paperless discount./li>
  • Advance purchase discount.
  • Smoke-Free
  • Home buyer discount for newly purchasing the home you are insuring.
  • Retired homeowner discount if insureds are at least 55 years old and retired.
  • Claim-free, for being claim free while maintaining continuous coverage for at least one year.
  • Prior insurance discount I f you switch to AAA from another insurance carrier.
  • Hail-resistant roof discount
  • Roof age verification
  • Safety device discount based on the fire, theft and water safety devices installed in the residence.
  • Fortified home discount if the home is certified as Fortified/Secured for Safer Living by the Institute for Business and Home Safety (IBHS).

Best for local service: Farm Bureau Insurance Company of Michigan

With insurers through the Farm Bureau, you get service from people with connections to the community, plus coverage that fits your lifestyle if you live in the more rural parts of the state or on the lakes. The Farm Bureau of Michigan’s average rate ($1,973) is competitive with major carriers and is among the cheapest of companies surveyed. You do have to pay a nominal membership fee but in return you get perks.

In addition to standard coverages, it offers:

  • A Country Estate policy for people who operate small farms as a side-source of income. It is designed for individuals who live in rural areas, who own some acreage and may cultivate it or have some agricultural exposures, but who make their primary living away from the land.
  • A Lake Estate policy for those who own homes on the shores of four of the bordering Great Lakes or on one of the 11,000 inland lakes.
  • MyHomeWorks, which provides online tools and resources that help you protect your home and belongings and provides energy-saving tips. It also provides free technical support, for instance, if you need help with your personal computing issues.
  • Membership benefits include discounts on car rental, hotels, sporting event tickets, theme parks as well as on auto and farm equipment.

Cheapest homeowners insurance companies in Michigan

Safeco, USAA, Allstate, Farm Bureau and Farmers are the cheapest homeowners insurance companies in Michigan, based on a rate analysis by Insurance.com. These rates were fielded from major companies for nearly every ZIP code in the state and averaged by company and coverage level.

It's crucial to shop around for the best home insurance rate, because prices for the same coverage vary by hundreds of dollars. That means, if you don’t compare rates, you may wind up overpaying.

Each carrier uses its own method for deciding what you pay, which is why prices differ so much. Insurance.com Senior Consumer Analyst Penny Gusner suggests getting at least three price quotes when shopping for coverage, and says that doing so can save you up to hundreds of dollars annually.

Below are average home insurance rates, ranked by company for a policy with $300,000 in dwelling and liability coverage with a $1,000 deductible.

Company NameAverage rateMonthly rate
Safeco$1,452$121
USAA$1,521$127
Allstate$1,758$147
Farm Bureau Michigan$1,973$164
Farmers$2,148$179
Memberselect$2,521$210
State Farm$2,639$220
Citizens Insurance$2,964$247
Liberty Mutual$2,997$250
Fire Insurance Exchange$3,262$272

 

Michigan homeowners insurance rates by ZIP code

The most expensive ZIP codes for home insurance in Michigan are all in Detroit and are about $1,590 more than of the state average of $2,135. These include the neighborhoods in ZIP codes 48204 ($3,743), 48235 ($3,688) and 48211 ($3,642). The least expensive ZIP codes are about two hours west of Detroit in Grand Haven (49417), Grand Rapids (49503) and Jenison (49428) and are about $400 less than the state average.

Many factors affect home insurance rates. Chief among them is where you live, which is why rates vary a great deal depending on your ZIP code. In addition to location, what you pay is also influenced by the following:

  • Your home's square footage
  • Building costs in your area, and your own home's construction, materials and features
  • Local crime rates
  • The likelihood of certain types of disasters, such as hurricanes

 

Michigan homeowners insurance calculator

By entering your ZIP code in the search box, you’ll see the average home insurance rate for that area, as well as the highest and lowest premium fielded from major insurers. This will give you an idea of how much you can save by comparing home insurance rates. The difference between the highest the highest rate and the lowest rate is how much you can save by shopping your policy.

Homeowners insurance rates in Michigan by city

Though you can see how much coverage costs for your neighborhood by using our average rates tool above, you may want to know the cost of a policy in your city, and how it compares to others. Below we provide rates for the largest cities in the state.

CityAverage rateMonthly rate
Detroit$3,279$273
Grand Rapids$1,880$157
Warren$2,391$199
Sterling Heights$2,165$180
Ann Arbor$1,979$165
Lansing$1,978$165
Clinton Township$2,187$182
Flint$2,630$219
Dearborn$2,631$219
Livonia$2,116$176

 

Homeowners insurance rates in Michigan by company

Below are average yearly and monthly home insurance rates, ranked by company for a policy with $300,000 in dwelling and liability coverage with a $1,000 deductible. You’ll see Nationwide is the cheapest, among carriers surveyed.

Company NameAverage rateMonthly rate
Safeco$1,452$121
USAA$1,521$127
Allstate$1,758$147
Farm Bureau of Michigan$1,973$164
Farmers$2,148$179
Memberselect$2,521$210
State Farm$2,639$220
Citizens Insurance$2,964$247
Liberty Mutual$2,997$250
Fire Insurance Exchange$3,262$272

 

Homeowners insurance rates in Michigan by coverage level

Below we show the average cost of Michigan homeowners insurance for 10 coverage levels, all with a $1,000 deductible, based on a rate analysis by Insurance.com. As you can see, the difference in price between low liability limits and the recommended higher amount is negligible, less than $20.

Dwelling and liability limits with $1,000 deductible
$200,000 dwelling with $100,000 liability$1,703$142
$200,000 with $300,000$1,725$144
$300,000 with $100,000$2,130$178
$300,000 with $300,000$2,153$179
$400,000 with $100,000$2,543$212
$400,000 with $300,000$2,563$214
$500,000 with $100,000$2,940$245
$500,000 with $300,000$2,960$247
$600,000 with $100,000$3,152$263
$600,000 with $300,000$3,171$264

 

Homeowners insurance discounts in Michigan

There are several ways to reduce your Michigan home insurance costs. Many insurers will lower your bill if you purchase more than one type of insurance policy from them. This process – known as "bundling" – can cut your costs by up to 19%, on average, in Michigan, according to Insurance.com’s discount data analysis.

You can also cut your costs by making your home more disaster-resistant. Installing hurricane glass or accordion shutters might net you a discount.

Other possible home insurance discounts include:

  • Installing smoke detectors, a burglar alarm or dead-bolt locks -- 5% each
  • Installing a sprinkler system, and a fire and burglar alarm -- 15% to 20% percent
  • Loyalty discounts – about 4% on average, after three to five years, and  6% for six years or more

Home-auto discount bundle in Michigan

Michigan homeowners who buy coverage for both home and auto from the same company can save an average of $334a year, or 19%, based on Insurance.com’s rate analysis. But in some cases it can be much more – much less – depending on your insurance company and your homeowner profile. Below you’ll see how major carriers in Michignan compare for home-auto bundle discount savings.

Company

$ bundle average savings

% bundle average savings

Memberselect$66437%
Allstate$41734%
State Farm$62332%
Citizens Insurance$99028%
Farmers$29120%
Frankenmuth$22215%
Pioneer State$21815%
Auto Club Group$21515%
Fremont$15213%
Meemic$13912%
Farm Bureau of Michigan$20011%
Auto Owners$3711%
USAA$1679%

 

FAQs by Michigan homeowners

How do I find the right insurance company?

When shopping for homeowners insurance, it's important to find the right insurance company to meet your needs.

Michigan law does not require you to buy homeowners insurance. However, if you use a mortgage loan to finance your home purchase, your lender likely will insist you buy a homeowners policy, according to the Michigan Department of Insurance and Financial Services (DIFS).

Comparing quotes from at least three insurance companies can help you find the right insurer at the best price, according to the Insurance Information Institute.

DIFS publishes a list of insurers offering coverage in the Wolverine State. You can find the list at the end of the department's guide to homeowners insurance. You can also search for providers at the department's website.

The department also notes that insurance companies must offer you a policy, regardless of where you live in Michigan. "Whether you live in Ionia, Inkster, or Iron Mountain, every company writing homeowners insurance has a rate for you, and must provide coverage," according to the department website.

Sometimes, a history of complaints against an insurance company can give you crucial insights into whether the insurer is right for you. To check out complaint information against insurers operating in Michigan, stop by the DIFS website and look at its insurance complaint statistics and ratios.

These ratios help you to compare the complaint history of insurance companies of many different sizes to get an accurate gauge of past customer experiences.

Which factors can insurance companies use in setting rates?

Michigan state law determines which factors may be used to set insurance rates. They include:

  • Type of house -- wood or brick
  • Age of the home
  • Physical condition of the home
  • Security and safety devices, such as burglar alarms or smoke detectors
  • Distance the home is from a fire hydrant

Each year, insurance companies operating in Michigan are required to provide policyholders with a description of the ratings classifications used in setting rates. This information must be disclosed upon request.

Insurance companies selling policies in Michigan also must have a process in place so policyholders can dispute what they believe to be an incorrect premium. The insurance company then must review the rate. If the policyholder is not satisfied with the results of the insurer's review, he or she can ask DIFS to make its own review of the rate.

What if I can't get homeowners insurance in Michigan?

Michigan law does not require you to purchase homeowners insurance. However, if you have a mortgage, it is likely your lender will require you to purchase this coverage.

The Department of Insurance and Financial Services notes that some people might find themselves unable to land a homeowners insurance policy in Michigan. This can occur for various reasons, including but not limited to:

  • You have been found guilty within the past five years of certain crimes, such as arson or fraud.
  • You have failed to pay insurance premiums in the past two years and have had a policy canceled as a result.
  • You are buying a home in especially poor condition.

Find out more in the DIFS publication "Homeowners Insurance: Are You Eligible?"

If you are unable to purchase a policy directly from an insurance company, contact an insurance agent and ask to apply to the Michigan Basic Property Insurance Association. The Michigan Legislature created the MBPIA in 1968 as an insurer of last resort for homeowners who cannot find other coverage.

For more information, call 313-877-7400.

Where do I file a complaint?

You might end up disputing how your homeowners insurance company handled a claim. If you have a dispute with your insurer, the Michigan Department of Insurance and Financial Services can help. The Office of Consumer Services can investigate your complaint and try to help resolve it, or at least explain your options.

The department encourages you to try to resolve any complaint with the insurance company first. If such efforts fail, visit the DFIS website and fill out an insurance complaint form.

The form includes directions for how to file a complaint. Among other things, you'll need the name of the insurer and agent involved in the dispute, and policy and claim numbers. You'll also need to include a history of previous communications regarding the dispute, and copies of all documents relevant to the dispute.

If you prefer, you can download a copy of the complaint form and mail, email or fax it.

Which statements are insurance companies prohibited from making in Michigan?

Except in rare circumstances, insurance company representatives are not allowed to say certain things to you. Call the DFIS at 877-999-6442 if you hear any of the following:

  • We don't write in that area.
  • We aren't taking any new customers.
  • We don't have an agent in your area.
  • Your house is too old.
  • We can't write your homeowners insurance unless you insure your automobile with us.
  • You aren't eligible for a policy with our company (no explanation of ineligibility is provided), but we can place you with Michigan Basic (MBPIA).

Why do I need flood insurance?

Michigan ranked sixth among all states and the District of Columbia in flood damage claims paid out during 2020. Claims totaled $33.8 million, according to the Federal Emergency Management Agency.

The 2020 flooding was largely the result of two dams that failed about 140 miles north of Detroit last May.

As of 2019, 20,748 flood insurance policies were active in Michigan, representing $4.2 billion in coverage.

That includes 3,603 direct NFIP flood insurance policies representing $580.6 million, and 17,145 write-your-own policies representing $3.6 billion.

Homeowners insurance does not cover damages associated with floods. Instead, you need to purchase a flood insurance policy through the National Flood Insurance Program. The average flood insurance premium was $642 in 2018, according to the Insurance Information Institute. An NFIP policy covers up to $250,000 in damages to the structure of the home, and up to another $100,000 for personal possessions. 

Homeowners in the Wolverine State might be tempted to skip flood insurance, but that can be a costly mistake. Floods are the No. 1 type of natural disaster in the U.S., according to III. In addition, about 90% of all natural disasters involve some form of flooding, according to the Federal Emergency Management Agency.

The average amount of flood coverage per policy was $257,000 in 2018, according to the Insurance Information Institute.

The average flood claim in 2018 was $42,580. That was down significantly from $91,735 in 2017, a year of several significant hurricane strikes in the U.S.

The federal government underwrites the majority of flood insurance policies in the U.S. under the National Flood Insurance Program. However, a handful of private insurers also offer flood policies. In 2019, the top three private companies nationally in terms of providing flood insurance were:

  • Assurant Inc.
  • Zurich Insurance Group
  • Swiss Re Ltd