Michigan homeowners are fortunate to have an average annual premium that’s 7% lower than the national average. Our top choice for homeowners insurance in Michigan, Auto-Owners Insurance, falls even lower than the average and has strong financial and customer satisfaction ratings. The company offers an array of discount options that can further reduce prices without compromising on home protection.
To determine the top carriers in the state, we analyzed BBB, AM Best, S&P, Moody’s, and J.D. Power ratings. We also compared general profile quotes and offerings from each company.
The 5 Best Homeowners Insurance Companies in Michigan
|Auto-Owners Insurance||USAA||State Farm||Allstate||Farmers Insurance|
|Our review||Our review||Our review||Our review|
|A.M Best Financial Strength Rating||A++||A++||A++||A+||A|
|J.D. Power 2019 Overall Customer Satisfaction Score||4/5||5/5||4/5||3/5||3/5|
|Online Quote Tool||X||✓||✓||✓||✓|
Average Cost of Homeowners Insurance in Michigan
The average cost of homeowners insurance in the state of Michigan is $2,153, which is $152 lower than the national average of $2,305. Your personal cost depends on factors like where you live in Michigan and your home’s size and age. To find the best policy for your budget, research and request personalized quotes.
Home Insurance Add-Ons That Will Further Protect You
Michigan doesn’t require homeowners insurance, but your lender most likely will as part of the contract. 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 or not.
Helpful Resources 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 shopping 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 throughout your homeownership.
To determine the best homeowners insurance in Michigan, we started with the largest companies in the state. We compared each company’s financial strength from AM Best, S&P, and Moody’s ratings. We also looked at its customer satisfaction ratings from J.D. Power. Finally, we used each company’s average annual premium to determine affordability.
We worked with Quadrant Information Services to provide data on home insurance rates by company, state, and age of the home. Quadrant makes this information available using data that insurers are required to file with the state Department of Insurance. These rates are based on a sample profile created by Reviews.com for comparative purposes.
Best Michigan Homeowners Insurance Companies
- Affordable premiums
- Several discount options
- Little online capabilities
Auto-Owners Insurance is one of the most affordable homeowners insurance companies we examined in Michigan. Along with its affordable premiums, Auto-Owners Insurance offers numerous ways for customers to save more money, such as a green discount and a mortgage-free discount.
Customers who prefer to handle things online may find the lack of website capabilities frustrating. You need to contact an agent to get a quote, purchase a policy, or file a claim. You can pay bills and track claims online, but everything else goes through an agent.
- Holds the highest rating for J.D. Power customer satisfaction
- Easy online claims
- Only available for military
USAA is an excellent option for Michigan homeowners who are members of the military. Unfortunately, it’s not available to people outside the military community.
For those who qualify, USAA is an affordable choice. It has the highest J.D. Power overall customer satisfaction rating from the most recent study. USAA’s website and mobile app also offer a smooth claims process.
- Great coverage
- Strong financial rating
- Flood coverage not included
State Farm homeowners insurance includes many important coverage. Particularly notable for Michigan residents is frozen plumbing and the weight of ice, snow, or sleet. What isn’t included, however, is flooding. Homeowners have to purchase flood insurance separately.
What’s reassuring for potential customers is State Farm’s strong financial rating. AM Best gives this insurance provider a superior rating (A++), which means it can handle any sized claim.
- Several perks and discounts
- Convenient mobile app
- Higher rates
Allstate is one of the more expensive providers on our list. If its premiums seem out of reach, however, consider whether you can qualify for some of Allstate’s discounts. There are optional financial features as well. RateGuard keeps your premium from going up when you make a claim. If you switch to Allstate without recent claims, you can also get a claim-free bonus.
The Allstate mobile app makes managing your Michigan homeowners insurance policy from your phone incredibly easy. You can make a payment or file a claim that includes photos. The app also has a digital locker to store pictures of your home and other belongings.
- Customizable policies
- Eco-Rebuild coverage
- Average customer satisfaction rating
Farmers Insurance offers three customizable packages as a base for your home insurance policy: Standard, Enhanced, and Premier. Plans can also include helpful add-ons. With Eco-Rebuild coverage, you can get up to $25,000 toward replacing appliances and materials with environmentally friendly alternatives.
Farmers Insurance holds an average customer satisfaction with J.D. Power. Average isn’t necessarily bad, but its customer satisfaction score is the lowest of our top five homeowners insurance in Michigan.
The Cheapest Homeowners Insurance Companies in Michigan
|Largest Companies by Market Share in Michigan||Average Annual Premium|
|Meemic Ins Co||$915|
|American Select Ins Co||$1,038|
|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|
|Citizens Ins Co Of The Midwest||$4,236|
Cost of Homeowners Insurance by Age of Home
|Age of Home (years)||Sample Annual Premium|
|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
- Encompass – $6,382
- Citizens Insurance Company of the Midwest – $4,236
- State Farm – $2,406
The three cheapest homeowners insurance companies in Michigan are Auto-Owners Insurance, Meemic Insurance Company, and USAA. The three most expensive companies are Encompass, Citizens Insurance Company of the Midwest,and State Farm. These rates are based on the average annual premium. Several determining factors will ultimately establish your cost. The smartest way to find the best value for your coverage needs is by requesting personalized quotes.
Homeowners Insurance in Michigan FAQ
Is homeowners insurance required in Michigan?
By law, you aren’t required to have homeowners insurance in Michigan. That said, if you’re financing a home, your lender will most likely require you to purchase home insurance for its financial protection.
What is the cheapest homeowners insurance in Michigan?
The cost of your homeowners insurance in Michigan depends on many deciding factors, including the age and size of your house, your credit score, and your neighborhood’s crime rate, to name a few. Based on average annual premiums, Auto-Owners Insurance offers the cheapest homeowners insurance in Michigan.