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Safeco offers the cheapest homeowners insurance in Michigan among carriers surveyed by in 2021. Its average rate for Michigan homeowners is $1,452 a year, or $121 a month. That’s about $700 less than the average homeowners insurance cost in Michigan of $2,153 and nearly $855 less than the national average of $2,305

But cheapest doesn't always equal best. In this article, we’ll dive into the best Michigan homeowners insurance companies for price, customer service, claims and more to help make your home insurance shopping a breeze.

  • Safeco is the cheapest insurance company in Michigan with an average rate of $121 per month.
  • Bundling your insurance policies can help you save up to 19% on average in Michigan.
  • At $2,135 a year, the average cost of home insurance in Michigan is a little below the national average of $2,305.

The 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 earned 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 an additional $2 a month this coverage repairs or replaces household appliances after mechanical or electrical breakdowns.
  • The Safeco package. This 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. Provides additional coverage beyond the calculated replacement cost of your home to allow for inflation.
  • Identity theft recovery. Helps pay costs associated with identity theft.
  • 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, the company offers warranty coverage to repair or replace your covered items. 

Best for customer service: Allstate

Allstate’s average home insurance rate for Michigan ($1,758) is lower than most other major carriers. Allstate received four stars (out of five) for customer service, value and for claims among Midwestern homeowners. Allstate also offers a host of discounts to make coverage even more affordable. Coverage options include:

  • Water back up coverage. Covers damage due to sump pump or drain back ups.
  • Claim Rateguard. Allstate won’t hike your rate for the first claim filed within a five-year period.
  • Identity theft coverage. Pays costs associated with identity theft.
  • Special personal property coverage. Available 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 on items like trees, landscaping and riding lawn mowers.
  • Electronic data recovery. Covers the cost of recovering lost personal computer data, like photos or videos.
  • Business property coverage. Added protection that increases limits for business-related items stored in your home, like inventory.
  • HostAdvantage. Covers your belongings when renting out your home.

Discounts include:

  • Claim-free discount (up to 20%) 
  • Good payment history
  • Multi-policy discount (up to 25%)
  • Welcome & loyalty discount (up to 10%)
  • New home buyer discount 
  • Automatic payments (up to 5%)
  • Theft and fire protection discounts.
  • Early signing discount (up to 10%)

Best for claims: American Family

American Family earned 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. Will pay to replace undamaged siding so that it matches the siding of the damaged area.
  • Family personal property and liability. Coverage for family members living in nursing homes or assisted living homes.
  • Diminishing deductible. Reduces your deductible by $100 yearly at renewal, up to your policy’s maximum limit.

Discounts beyond the usual include:

  • Smart home security discount. 
  • Generational discount. Those aged 18 to 30 get a discount if a parent has American Family insurance.

Best for home and auto bundling: AAA Memberselect

Memberselect, which is affiliated with AAA Michigan, earned the top spot for bundling auto and home with an average savings of 37% ($664). That’s  more than other major carriers surveyed in’s 2021 rate analysis. AAA Memberselect’s average Michigan home insurance rate is $2,521. That’s in the middle of the pack, but this company 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. The Ultimate package offers the following upgrades:

  • Claim Forgiveness Ultimate. Allows certain claims with no rate increase.
  • Claim-free rewards. Earn cash back or a renewal credit of 3%, up to $50, for remaining claim free.
  • 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. Covers systems like central air conditioning, furnaces, and water heaters.

Optional coverages include:

  • Water damage coverage. Covers damages to property resulting from water back-ups in sewers, sump pumps and drains.
  • Landscaping and yard coverage. Helps pay to replace damaged trees, shrubs, plants and lawns.
  • Specialized personal property coverage. For high value items including silverware, musical instruments, golf equipment, jewelry, and watches.
  • Green upgrade coverage. Covers upgrade to more eco-friendly and energy efficient construction during claim repairs.
  • Home day care coverage. Covers you if you run a daycare from your home.
  • Home hosting. Incidental rental coverage for temporary rental of your home.

Discounts in addition to bundling include:

  • Paperless discount
  • Advance purchase discount
  • Non-smoker
  • New home buyer discount
  • Retired homeowner discount
  • Claim-free discount
  • Prior insurance discount
  • 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

Farm Bureau offers local service and specialized plans for homes in 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. In return for a membership fee, the company offers many perks. 

In addition to standard coverages, it offers:

  • 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.
  • Lake Estate policy. For those who own lakefront homes.
  • MyHomeWorks.  A program that 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 a computer.
  • Membership benefits. These include discounts on car rental, hotels, sporting event tickets, and 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 2021 rate analysis by 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.

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
Farm Bureau Michigan$1,973$164
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 the state average of $2,135. These include the neighborhoods in ZIP codes: 

  • 48204 ($3,743)
  • 48235 ($3,688)
  • 48211 ($3,642)

The least expensive ZIP codes are about $400 less than the state average and are in: 

  • Grand Haven (49417)
  • Grand Rapids (49503)
  • Jenison (49428) 

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
  • Weather and natural disasters

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 rate and the lowest rate is how much you can save by shopping your policy.


Average home insurance rates in CALIFORNIA

94404 - Foster City
Dwelling $200,000, Deductible $1,000 and Liability $100,000.



Most & least expensive zip codes for homeowners insurance in California

Most Expensive

Zip CodeCityHighest Rate
92561Mountain Center$1,031
90210Beverly Hills$1,029
90069Los Angeles$1,020
90046Los Angeles$1,011

Least Expensive

Zip CodeCityLowest Rate
93433Grover Beach$615

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 Michigan.

CityAverage rateMonthly rate
Grand Rapids$1,880$157
Sterling Heights$2,165$180
Ann Arbor$1,979$165
Clinton Township$2,187$182

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 2021 rate analysis by As you can see, the difference in price between low liability limits and the recommended higher amount is less than $20 a year.

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 by as much as 37% if you bundle your auto and home.

You can also cut your costs by making your home more disaster-resistant. 

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 and auto bundling discount in Michigan

Michigan homeowners who buy coverage for both home and auto from the same company can save an average of $334 a year, or 19%, based on’s 2021 rate analysis. Below you’ll see how major carriers in Michigan compare for the home and auto multi-policy discount.


$ bundle average savings

% bundle average savings

State Farm$62332%
Citizens Insurance$99028%
Pioneer State$21815%
Auto Club Group$21515%
Farm Bureau of Michigan$20011%
Auto Owners$3711%

FAQ: Michigan homeowners insurance

How do I find the right insurance company?

The Michigan Department of Insurance and Financial Services (DIFS) publishes a list of insurers offering coverage in the state.

You can review insurance complaint information as well to help determine which company has the best reputation.

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, your lender will require it. 

If you are unable to purchase a policy directly from an insurance company for any reason, contact an insurance agent and ask to apply to the Michigan Basic Property Insurance Association.

Where do I file a complaint against a Michigan insurance company?

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.

Do I need flood insurance in Michigan?

Homeowners insurance does not cover damages associated with floods. Instead, you need to purchase a flood insurance policy through the National Flood Insurance Program. 

Your mortgage company may require flood insurance if you live in a high-risk flood zone.

Methodology analyzed rates for all Michigan ZIP codes, fielded by Quadrant Data Services in 2021. Rates were fielded for multiple coverage levels and for all of the home insurance companies listed.

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