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Our top picks for best homeowners insurance companies in Michigan have been carefully chosen based on price, customer service, financial stability and the level of coverage available. According to our analysis, Michigan’s best home insurance is Auto-Owners. This provider ticks all the boxes and offers a reasonable annual premium for its coverage.
The good news is that home insurance in Michigan is one of the lowest in the U.S. so you will find affordable coverage with any of the five providers in our list. For more options, you can also read our article on the best national homeowners insurance companies.
The 5 Best Homeowners Insurance Companies in Michigan
- Auto-Owners Insurance – Best Overall
- USAA – Best for Military Families
- State Farm – Best Web Experience
- Allstate – Best for New Homebuyers
- Farmers Insurance – Best Pricing Options
Compare Michigan’s Top Insurance Companies
| Average Price | AM Best Financial Strength | J.D. Power Overall Customer Satisfaction | Reviews.com Score | |
| Auto-Owners Insurance | $310 | A++ | 843/1000 | 4 |
| USAA | $1,027 | A++ | 889/1000 | 4 |
| State Farm | $2,406 | A++ | 829/1000 | 3.75 |
| Allstate | $2,202 | A+ | 829/1000 | 4 |
| Farmers Insurance | $2,373 | A | 814/1000 | 3.5 |
Auto-Owners Insurance
If you prefer doing your insurance business in person or by phone rather than digitally, Auto-Owners could be a good fit for you. Auto-Owners doesn’t have an online quote tool, nor can you report a claim online, but the company is known for its excellent customer service and financial stability.
Best Overall
Why we chose it
Why we chose it
Pros
- Excellent customer service
- Financially solid
- High claims satisfaction
- Unique add-ons & special discounts
Cons
- Poor digital experience
- Coverage not available in all states
Discounts available
- Multi-policy discount
- Protective devices discount
- Automatic backup generator discount
Unique features
Auto-Owners offers many discounts, some quite unusual for most insurance companies. These include an automatic backup generator discount, a water shut-off system discount, a mortgage-free discount and a favorable loss history discount.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on Auto-Owners:
USAA
USAA appears at the top of rating lists for its excellent customer service, comprehensive policies, and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.
Best for Military Families
Why we chose it
Why we chose it
Pros
- Outstanding customer service
- Policies tailored to military family needs
- Competitive pricing
Cons
- Only available to current and former military members and their families
- Limited discounts
Discounts available
- Save 10% if you bundle with auto
- Claims-free 10% discount
- Home security system discount
Unique features
USAA’s policies are written with service men and women in mind. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on USAA:
State Farm
State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about homeownership in general.
Best Web Experience
Why we chose it
Why we chose it
Pros
- Financially strong
- Excellent web presence
- 19,000+ agents nationally
- Informative blog
Cons
- Limited discounts
- Higher premiums
Discounts available
- Multiple policy discount
- Fire, smoke, or burglar alarms discount
- Impact-resistant roof discount
Unique features
State Farm’s comprehensive website makes it easy to get a detailed quote in minutes. You can also pay your bill, file and manage a claim, and handle most maintenance tasks either online or via the company’s app.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on State Farm:
Allstate
Allstate’s strength is in the diversity of its offerings and discounts, which allow you to pick and choose the coverage that works best for your circumstances. It has a great website, with tons of useful information.
Best for New Homebuyers
Why we chose it
Why we chose it
Pros
- Diverse discount opportunities
- Informative website and digital tools
- Above-average customer service
Cons
- High NAIC complaint ratio
Discount available
- Early signing discount
- Home buyer discount
- Hail-resistant roof discount
Unique features
Allstate’s discount list is longer than most national insurers. You could save up to 10% on your premiums if you sign up for your new policy at least 7 days before the current one expires.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale.
Further Reading on Allstate:
Farmers
Farmers offers an unusual quoting system that features three tiers of service. Within those three tiers, you can further customize your policy if you have, say, expensive electronics or jewelry to cover.
Best Pricing Options
Why we chose it
Why we chose it
Pros
- Three tiers of coverage
- Declining deductible
- Helpful mobile
- Identity theft coverage
Cons
- Sparse website
- Not as many discounts
Discount available
- Nonsmokers discount
- Multiple policies discount
- Professional group member discount
Unique features
Farmers’ three tiers — standard, enhanced, and premier — let you pick the best policy based on cost and coverages. The highest level, premier, includes replacement cost coverage with 100% reimbursement regardless of policy limits.
*J.D. Power 2020 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale
Further Reading on Farmers:
Average Cost of Homeowners Insurance in Michigan
The average cost of homeowners insurance in the state of Michigan is $942, which is $269 lower than the national average of $1,211. Your home insurance cost depends on factors such as your neighborhood, the crime rate in your area, and your home’s size and age, among other considerations. To find the best policy for your budget, you will need to research and request personalized quotes from several providers.
Home Insurance Add-Ons That Will Further Protect You
One of the most important add-ons for Michigan homeowners is flood insurance. Unfortunately, the state’s frigid winter temperatures commonly freeze pipes, leading them to burst and flood homes.
You may also want to buy extra coverage for water backup and sump pump overflow. Check your insurance policy carefully to determine whether you’re already covered for water damage caused by these events or not.
The Cheapest Homeowner Insurance Companies in Michigan
| Largest Companies by Market Share in Michigan | Average Annual Premium |
| Auto-Owners Insurance | $310 |
| Meemic Ins Co | $915 |
| USAA | $1,027 |
| American Select Inc Co | $1,038 |
| Chubb | $1,399 |
| Frankenmuth Mut Ins Co | $1,498 |
| Cincinnati Ins Co | $1,518 |
| Memberselect Ins Co | $1,765 |
| Privilege Underwriters Recp Exch | $1,814 |
| Pioneer State Mut Ins Co | $1,854 |
| Grange Ins Co of MI – PinPoint | $1,868 |
| Hastings Mut Ins Co | $2,113 |
| Allstate | $2,202 |
| Farmers Insurance | $2,373 |
| State Farm | $2,406 |
| Citizens Ins Co Of The Midwest | $4,236 |
| Encompass | $6,382 |
Cost of Homeowners Insurance by Age of Home
| Age of Home (years) | Sample Annual Premium |
| 5 years | $2,299 |
| 20 years | $3,144 |
| 35 years | $3,217 |
| 50 years | $3,238 |
| Average Across Ages | $2,974 |
Top 3 Cheapest Homeowners Insurance Companies in Michigan
- Auto-Owners Insurance – $310
- Meemic Insurance Company – $915
- USAA – $1,027
Top 3 Most Expensive Homeowners Insurance Companies in Michigan
- State Farm – $2,406
- Citizens Insurance Company of the Midwest – $4,236
- Encompass – $6,382
These rates are based on the average annual premium. However, several different factors will ultimately establish your cost. The smartest way to find the best value for your coverage needs is by requesting personalized quotes from several companies..
Resources Helpful for Michigan Homeowners
Residents can find some useful resources when it comes to housing and homeowners insurance in the state’s guide to homeowners insurance in Michigan. It covers everything from types of policies and understanding your plan to shop for coverage and even ways to reduce your premium. The U.S. Department of Housing and Urban Development also has a thorough homeownership page that offers advice for every stage, including buying a home, owning and maintaining it, and other resources that might come in handy.
Homeowners Insurance in Michigan FAQ
Methodology
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best companies. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using JD Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
About the Authors
Lorraine Roberte is a South Florida-based personal finance writer. Her work has been published on sites such as Thrive Global, Elephant Journal, Red Tricycle and Tweak Your Biz.
