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|
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*|
*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.
Get a Free Home Insurance Quote Online Now.
At the top of the list, is reviewing insurance policies. Are you getting the coverage you need at the price you want? If not, it may be time to change policies. Need a different price? Shop around for better offers.
Gutters and downspouts work to navigate water flow off the roof so that there is no standing water that can lead to complications such as rotting wood, rotting fascia and foundation cracks
Looking for Home Insurance?
Compare rates from dozens of companies in less than 3 minutes.
Do you hear gurgling or trickling noises from the toilet? Does water drain more slowly than usual? Do you have a sink hole in your yard suddenly? Is your grass suddenly vibrantly green in patches?
If you're a new homeowner or if you simply decided to look into what homeowners insurance covers, you probably have a few questions about your policy. We have answers.
Keep in mind that in order to get paid for the tree removal you will have to first pay your deductible. Your deductible costs anywhere between $250 and $1,000 so it may make sense for you to pay for the tree removal out-of-pocket. Also, your rate may go up if you file a claim. Is it worth it?
With all the benefits that come with owning a swimming pool there are also risks, which is why swimming pools are often called “an attractive nuisance.” According to the Centers for Disease Control and Prevention (CDC), approximately 10 people die from unintentional drowning.
Mortgage payments and possibly a homeowners warranty aren’t the only costs of owning a home. Nope, it doesn’t end with taxes and homeowners insurance either. Most people who set out to buy their first home are in for a surprise when the closing date approaches and they learn that they owe all sorts of money for the house they just bought.
Homeowners insurance was not designed to cover small or even big fixes, but to repair damage that is covered under the stipulations of your policy. In fact, you may end up paying more in monthly premiums if you file a claim that gets rejected. For this reason, we advise you to fully review your case and your policy to see if you’re covered before filing a claim.
Homeowners insurance is an important protection to have even when it’s not required for a primary home, a vacation home or condo.