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Michigan Homeowners Insurance

Homeowners Insurance in Michigan: Complete Consumer Guide

Planning to move to Michigan? Here are some interesting facts about your new home state. Detroit, Michigan is known as the car capital of the world. Rogers City, Michigan has the world’s largest limestone quarry. In 1817, the University of Michigan was the first university established by a state. Michigan State University was founded in 1855 as the nation’s first land-grant university. The Mackinac Bridge is one of the longest suspension bridges in the world. The bridge connects the upper and lower peninsulas of Michigan. Michigan is the only state that touches four of the five Great Lakes. Michigan has more than 11,000 inland lakes and more than 36,000 miles of streams.The state flower of Michigan is the apple blossom. The state bird of Michigan is the American robin. And the state tree of Michigan is the Eastern white pine. The capital of Michigan is Lansing.

Types of Homeowners Insurance policies in Michigan

What kind of homeowners insurance do you want for your home? Not certain? Here is a look at the different types of homeowners insurance policies.

HO-1. Known as the “basic form,” the HO-1 form covers the 10 most common perils. But you won’t find this form everywhere. Some insurance companies do not offer HO-1 basic forms.

HO-2 Called the “broad form,” the HO-2 form provides more limited coverage. But a HO-2 broad form still provides more coverage than a HO-1 basic form.

HO-3 This type of insurance form is the most widely purchased type of home insurance. The HO-3 form provides coverage for named perils and personal property. With a HO-3 form, your insurance company will pay to repair or replace belongings damaged by 16 covered perils. These perils include theft, falling objects, the weight of ice, snow, and sleet, water damage, fire, smoke, lightning, windstorm, hail, explosions and vandalism.

HO-6 This type of insurance form is for condominiums. The HO-6 form coverage is usually “walls-in” coverage and may protect the condo unit’s walls, ceilings and floors against 16 perils. The HO-6 form also includes coverage for the condo owner’s belongings.

HO-8 The HO-8 form is for older houses and covers 10 perils. The HO-8 form is paid on an actual cash value basis, which is the cost of the home items minus depreciation.

What factors affect rates on homeowners insurance in Michigan?

There’s an assortment of factors that impact the rate on a homeowners insurance policy. Let’s look at a few. For example, the construction materials of your home are big factors. So are other things such as how much it will cost to rebuild your house and replace all your belongings. Whether you have a swimming pool or a trampoline on your home property are other factors. Do you own a dog? You’re liable for dog bites and injuries caused by your pet and this affects your homeowners insurance rates. Credit also plays a factor. If you have good or excellent credit you’ll pay a lower homeowners insurance rate than a homeowner with bad credit.

Top 5 Disasters in the State of Michigan

Michigan federally declared Flood as the most common disaster with 125 counts since 1953, followed by Severe Storms, Tornado, Snow and Biological disasters. Here are the top 5 federally declared disasters in the state of Michigan:

Rank Declaration Title Disaster Number
1 Flood 125
2 Severe Storms 9
3 Tornado 6
4 Snow 5
5 Biological 2

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Michigan?

The average cost of homeowners insurance in Michigan is $919 per year.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Michigan a safe state?

2019 Crime in Michigan Crime Number Crime Rate*
Property Crime 158,296 1,585.0
Burglary 28,572 286.1
Larceny-Theft 111,980 1,121.3

*Rate per 100,000 inhabitants

Safest Cities in Michigan by Property Crime*

  • Hamburg Township, MI has a population of 21,755 with a Property Crime rate of 1.7 per 1k. The city average home value is approximately $297,501.
  • Grosse Ile Township, MI has a population of 10,135 with a Property Crime rate of 1.8 per 1k. The average home value there is about $298,074.
  • Oakland Township, MI came in third as the safest city in the state of Michigan and has a population of 19,649 with a Property Crime rate of 1.9 per 1k. Its home value averaged at about $464,115.
  • Springfield Township, MI has a population of 14,554 with a Property Crime rate of 2.6 per 1k. Its average home value is $310,446.
  • South Lyon, MI has a population of 11,896 with a Property Crime rate of 2.8 per 1k. The city home value averaged $366,097.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Michigan

Top homeowners insurance companies in Michigan

Auto Owners is known for its strong customer service and satisfied claims customers. Add-on coverages are available and so are a number of discounts. Discounts include a multi-policy discount, a protective devices discount, an automatic backup generator discount, a water shut-off system discount, a mortgage-free discount and a favorable loss history discount.

State Farm has speedy claims payments, an interactive website and add-on coverages that can be used to customize policies. State Farm is known for the accuracy of its insurance quotes. Available discounts include a multiple policy discount, a fire, smoke or burglar alarm discount and an impact-resistant roof discount.

Allstate is known for its wide array of discounts that help to lower premium prices. Allstate has a strong website with digital tools for customers to use when selecting insurance policies. Discounts include an early signing discount, a home buyer discount and a hail-resistant roof discount. At Allstate, you also save up to 10 percent on your premiums if you sign up for your new policy at least seven days before the current one expires.

Michigan Home Insurance FAQs

What is home contents coverage vs personal property?

Home contents insurance helps pay to replace or repair your belongings if they are stolen or damaged by a covered peril. Contents coverage is usually described as personal property coverage in most insurance policies.

Does homeowners insurance cover structural damage?

Yes, following a covered loss your homeowners insurance policy’s dwelling coverage would pay to repair or rebuild the structural damage to your home. Check the dwelling coverage section of your policy for details.

Is a shed covered by homeowners insurance in Michigan?

Yes, a shed is covered in the “Other Structures” section of a homeowners insurance policy. Any damage to the shed from a covered peril would be covered by the insurance policy.

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