Best Home Insurance in Michigan 2023

Homeowners in Michigan pay $743.16 per year, on average, for homeowners insurance — well below the national average of $1,213.89 per year. But price isn't the only factor to consider when choosing a homeowners insurance company. SmartFinancial analyzed third-party customer satisfaction scores and rates from more than 16 insurance companies to help you choose the best homeowners insurance in Michigan.

On This Page

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  Best Homeowners Insurance Companies in Michigan

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  Cost of Homeowners Insurance in Michigan

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  Homeowners Insurance in Michigan

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  What Michigan Homeowners Need to Know

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  How To Find Home Insurance in Michigan

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  Michigan Home Insurance FAQs

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  Get the Best Value for Home Insurance Coverage in The Great Lakes State

Best Homeowners Insurance Companies in Michigan

When choosing our top picks for home insurance in Michigan, SmartFinancial considered insurance rates, third-party scores and customer satisfaction. All rates referenced below are based on over 10,000 quotes from multiple insurance companies for a home with $250,000 dwelling coverage.

*Companies were chosen based on reviews and JD Power scores out of 1,000.

Homeowners in Michigan pay $743.16 per year, on average, for homeowners insurance.

Best for Cheapest Rates: Auto-Owners Insurance

Based on our research, Auto-Owners Insurance Company offered the cheapest rates — among the lowest we've seen nationwide. Costing $242.32 per year ($20.19 per month), homeowners pay 67% below the statewide average ($743.16). Auto-Owners also offers several homeowners insurance discounts, including bundling with another policy, installing security features (e.g., deadbolt locks, smoke detectors) and more.

• Discounts: Bundle with another policy; home security systems; mortgage-free; automatic backup generator; early renewal

Best for Customer Satisfaction: State Farm

Among the national home insurance providers, State Farm continues to stand out with its easy online services, extensive coverages and impeccable customer service. J.D. Power rated State Farm among the top five for overall customer satisfaction ratings in a 2021 homeowners insurance study. This is despite State Farm costing, on average, $1,685.42 per year, which is higher than the state average. The carrier's third-party scores and reviews indicate that policyholders are satisfied with the service they receive for the price they pay.

• Discounts: Bundle with another policy; home security systems; impact-resistant roofing

Best for High-Value Homes: Chubb

If you possess expensive valuables, then Chubb can be a suitable insurance option for you. Chubb customers can expect to pay, on average, $1,503.64 per year. It's clear Chubb serves a high net worth market, offering coverage for valuable articles (e.g., family heirlooms), art collections, jewelry and more. With their Masterpiece policy, homeowners will get a complimentary home appraisal, in which a professional consultant will assess your property and belongings to more accurately estimate the actual coverage you'll need.

• Discounts: Bundle with another policy; security features; new or renovated house

Best for Military Families: USAA

Costing $1,581.67 per year, USAA is a popular choice for home insurance among military families. USAA received a score of 882, the highest-ranking company on J.D. Power's 2021 home insurance study (although, it did not qualify due to its restrictive target market). Military families do pay more than the statewide average but also receive military-specific coverages. USAA customers, for example, enjoy coverage in warzones and waived insurance deductibles on uniforms and equipment that are damaged from a covered homeowners insurance claim while you're on active duty.

• Discounts: Bundle with auto; home security systems; claims-free history

Cost of Homeowners Insurance in Michigan

Homeowners insurance costs, on average, $743.16 per year for a home with a $250,000 dwelling value. The actual price you will pay, however, can differ based on your carrier, dwelling coverage and county. The average figures noted below should be used only for comparison purposes.

Cheapest Homeowners Insurance in Michigan

SmartFinancial collected over 10,000 quotes from 16 insurance companies and found that 44% carried average annual home insurance premiums of less than $1,500. On the most affordable end was Auto-Owners Insurance, costing only $242.32 per year. As mentioned, this is 67% below the state average and among the lowest rates that we've ever seen.

On the highest end was Farm Bureau Insurance of Michigan, costing $5,307.28 per year — more than triple the statewide average.

Average Cost by Dwelling Value

SmartFinancial compiled quotes for homes with dwelling values of $150,000, $250,00, $350,000 and $450,000. At $150,000 dwelling coverage, homeowners can expect to pay $524.98 per year, on average. The price increases to $1,229.95 for $450,000 dwelling coverage.

Note: Dwelling value refers to the rebuild cost of your home, not its fair market value. You'll often see that dwelling value is lower than its current selling price because it does not always consider the price of the underlying land.

Average Cost by County

Home insurance rates can change based on your rate, as some areas may be at higher risk of natural disasters (e.g., wildfires, floods), burglaries and more. The scope of our research extended to 70 counties and found that average premiums were generally under $1,200. Livingston county offered the cheapest rates at $569.24 per year while Wayne county paid the highest insurance rates, on average, at $1,026.80 per year.

Note: Our research covered only 70 out of the 83 counties in Michigan. The average premiums of counties not included below could fall outside the premium ranges we've found.

Compare Home Insurance Rates in Michigan

Homeowners Insurance in Michigan

Under most homeowners insurance policies, your home and personal property are covered against several types of perils, such as wildfires, windstorms, theft and more. Earthquakes and floods, however, typically are not included and you'd need to purchase a standalone policy or an insurance rider to gain the additional coverage.

State Farm continues to stand out with its easy online services, extensive coverages and impeccable customer service.

We've summarized the most common home insurance coverage options below, as well as some optional coverages you may want to purchase.

What Michigan Homeowners Need to Know

As a homeowner, you'll want to know what perils you're most exposed to in your area. In Michigan, specifically, homeowners are particularly vulnerable to wildfires, floods and occasional tornadoes.

Wildfires

Firefighters are dispatched to respond to 10,000 to 12,000 wildfires each year in Michigan. Nearly half of wildfires are due to dead and highly flammable vegetation paired with dry and windy days. Fortunately, fire damage is covered under basic homeowners insurance. Still, you'll want to double-check your insurance coverage with your carrier — especially if you live in rural and forest areas that may not have a firefighting team nearby.

Tornadoes

Michigan experiences an average of 15 tornadoes per year. While this is not as frequent as in other states, homeowners are still vulnerable to the potential wreckage (and subsequent costs) if one occurs in their area. Tornadoes are typically covered under the "windstorms" in a standard homeowners insurance policy, but you'll still want to double-check coverage with your homeowners insurance company.

Flooding

Depending on your home's location, you can be vulnerable to flooding. The Detroit Flood of 2014 recorded 4.57 inches, the largest 24-hour rainfall recorded since 1925, resulting in at least $1.8 billion in damages. The Detroit metropolitan area and surrounding communities experienced four to six inches of rain, with Wayne, Southern Oakland and Macomb counties facing the worst flooding.

How To Find Home Insurance in Michigan

The best way to find a home insurance policy that fits your needs and budget is to compare national and regional homeowners insurance providers. Many of the homeowners insurance companies listed above are popular national carriers, known for their name-brand recognition and necessary financial strength to pay out insurance claims.

Flood Insurance

Flood insurance policies are available by purchasing a private policy through your insurance carrier or a National Flood Insurance Program (NFIP)-approved licensed insurance agent. The federal government establishes the rates and the costs will not vary among different NFIP agents. Keep in mind that it will take 30 days for your insurance coverage to kick in.

Get the Best Value for Home Insurance Coverage in The Great Lakes State

With so many insurance companies, coverage options and insurance rates, shopping for homeowners insurance can feel overwhelming. But it doesn't have to be. SmartFinancial streamlines the entire process with our side-by-side comparison tables. With just a few button clicks, you can compare rates and coverage options from our 200+ insurance partners. Just enter your zip code below and answer a few questions to get started!