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Last updated on Oct 28, 2020

The Best Michigan Homeowners Insurance Companies

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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

    Compare Michigan’s Top Insurance Companies

     Average PriceAM Best Financial StrengthJ.D. Power Overall Customer SatisfactionReviews.com Score
    Auto-Owners Insurance$310A++843/10004
    USAA$1,027A++889/10004
    State Farm$2,406A++829/10003.75
    Allstate$2,202A+829/10004
    Farmers Insurance$2,373A814/10003.5

    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.

    Auto-Owners

    Best Overall

    Why we chose it

    The company has a track record of landing near the top of consumer rating organizations. It’s third on Consumer Reports’ listing with an excellent 89 out of 100. J.D. Powers gives it four out of five Power Circles for overall satisfaction, as well as high marks for claim servicing, estimating and settlement of claims.
    • 4 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 843* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    The company has a track record of landing near the top of consumer rating organizations. It’s third on Consumer Reports’ listing with an excellent 89 out of 100. J.D. Powers gives it four out of five Power Circles for overall satisfaction, as well as high marks for claim servicing, estimating and settlement of claims.

    Pros

    • Excellent customer service
    • Financially solid
    • High claims satisfaction
    • Unique add-ons & special discounts

    Cons

    • Poor digital experience
    • Coverage not available in all states
    Read More

    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.

    USAA

    Best for Military Families

    Why we chose it

    USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.
    • 4 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 889* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • N/A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.

    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
    Read More

    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.

    State Farm

    Best Web Experience

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.
    • 3.75 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 829* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.

    Pros

    • Financially strong
    • Excellent web presence
    • 19,000+ agents nationally
    • Informative blog

    Cons

    • Limited discounts
    • Higher premiums
    Read More

    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.

    Allstate

    Best for New Homebuyers

    Why we chose it

    Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs. Allstate is also generous in their coverage, providing up to $10,000 for accidental damage.
    • 4 Reviews Score
    • A+ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 829* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs. Allstate is also generous in their coverage, providing up to $10,000 for accidental damage.

    Pros

    • Diverse discount opportunities
    • Informative website and digital tools
    • Above-average customer service

    Cons

    • High NAIC complaint ratio
    Read More

    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.

    Farmers

    Best Pricing Options

    Why we chose it

    Farmers’ three tiers of service and variety of add-ons allow homeowners to customize policies to fit exactly what they need. For example, Farmers has a policy endorsement available with Identity Shield coverage that covers losses due to identity theft, identity and travel document replacement, and credit and public record monitoring.
    • 3.5 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 814* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Farmers’ three tiers of service and variety of add-ons allow homeowners to customize policies to fit exactly what they need. For example, Farmers has a policy endorsement available with Identity Shield coverage that covers losses due to identity theft, identity and travel document replacement, and credit and public record monitoring.

    Pros

    • Three tiers of coverage
    • Declining deductible
    • Helpful mobile
    • Identity theft coverage

    Cons

    • Sparse website
    • Not as many discounts
    Read More

    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 MichiganAverage 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

    Lorraine Roberte Contributing Writer

    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.

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