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Cheap Home Insurance in Michigan

Picture of Written by <a href="https://rateretriever.com/about/elizabeth-rivelli/"><span style="text-decoration: underline;">Elizabeth Rivelli</span></a>
Written by Elizabeth Rivelli
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto
Edited by Alyssa DiCrasto
Published on 2024-05-20

Read time: 3 min

If you own a house in Michigan, it’s important to have homeowners insurance to protect your investment. Homeowners insurance in Michigan covers the physical structure of your home, your personal belongings, and your liabilities. It also covers medical payments for guest injuries and loss of use if your home is damaged by a covered peril. 

The cost of homeowners insurance in MI depends on a variety of factors, including your city and ZIP code, the size of the home, the age of the home, and your insurance claim history. To find cheap home insurance in Michigan, it’s important to shop around and compare rates from a few different insurance carriers. 

View of Detroit, Michigan

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Why is home insurance so expensive in Michigan

The average cost of homeowners insurance in Michigan is $993 per year, according to data from the Insurance Information Institute. For comparison, the average home insurance premium in the U.S. is $1,411 per year, which is about 35% less than the Michigan average. 

Homeowners insurance rates in Michigan are actually much more affordable compared to other states. However, the cost of home insurance is different for every individual. Some Michigan homeowners pay above average rates, which can be expensive. 

One of the reasons why home insurance in Michigan can be pricey is because of the state’s risk of severe weather. Winter storms and heavy rain can damage houses and personal belongings, leading to more frequent insurance claims.  

Additionally, home insurance costs in Michigan tend to be higher in urban areas and neighborhoods with high crime rates. Because of that, Michigan homeowners who live in cities like Detroit or Lansing may have more expensive rates than homeowners in rural areas. 

How to get cheap home insurance in MI

Home insurance premiums in Michigan are personalized to each homeowner. If you want to lower your home insurance premium, there are several ways to potentially save money. Here are some tips for getting cheap home insurance in Michigan: 

  • Choose higher deductibles: Some home insurance policies, like personal property insurance, require a deductible when you file a claim. Choosing higher deductibles will result in a lower monthly premium.  
  • Make home improvements: You can often save money on home insurance if you make certain home improvements, like installing storm-proof windows and doors or a fire sprinkler system. 
  • Look for discounts: Many home insurance companies offer discounts to customers. Check to see what discounts are available before you purchase home insurance to maximize your savings. 
  • Avoid claims: Filing homeowners insurance claims will cause your premium to increase. Before you file a claim, figure out how much the repair will cost, and consider paying for small repairs out-of-pocket to avoid a rate hike. 

Cheap home insurance companies in Michigan

There are many reputable insurance companies that sell homeowners insurance in Michigan, and some carriers have lower rates than others. However, it’s difficult to say which home insurance companies in Michigan are the cheapest. Ultimately, the cost of home insurance is different for every individual, so comparing rates is important. 

Here are some of the highest-rated home insurance companies in Michigan that may have cheap rates, depending on your individual situation and coverage needs: 

  • State Farm 
  • Allstate 
  • USAA 
  • Travelers 
  • Farmers 
  • Progressive 
  • Auto-Owners 

How much home insurance do I need?

Before you purchase home insurance in Michigan, it’s important to figure out how much coverage you need. The amount of coverage that’s right for you will depend on the replacement cost value of your home and the value of your personal items. 

In general, you should have enough dwelling insurance to match the cost of rebuilding your home back to its original condition. Your personal property insurance limit should be about 50% to 70% of your dwelling insurance limit, but you might need more coverage depending on the value of your personal items. 

For liability insurance, it’s recommended to select a coverage limit based on the total value of your assets, such as vehicles, real estate, savings, retirement accounts, and investments. That way, your personal assets are fully protected if you get involved in a bodily injury liability or property damage liability claim. 

Most home insurance policies provide several fixed coverage limits for medical payments insurance and loss of use insurance. Choosing higher coverage limits for these policies will give you more financial protection, but your rate will likely be more expensive.  

How to save money on home insurance in Michigan

There are several ways to save money on home insurance in Michigan. Look for companies that offer discounts, consider installing a home security system, bundle your policies, pay your annual premium in full, and improve your credit score. Choosing higher deductibles will also result in a lower monthly premium. 

Another way to save money on home insurance is to shop around. Comparing personalized quotes from multiple providers will help you find the most affordable policy for your situation. You can take our short quiz to see how much you can expect to pay for home insurance. 

FAQs

Why is homeowners insurance going up in Michigan? 

There are a few reasons why the average cost of homeowners insurance in Michigan is increasing. According to experts, severe weather is becoming more frequent in Michigan, which poses additional risk to homes. Because more homeowners are filing claims, insurance companies are charging higher rates to offset their losses.

Is it normal for home insurance to increase every year? 

It can be normal for home insurance rates to increase every year, but not every homeowner will see consistent rate increases. The cost of home insurance can fluctuate up or down depending on a variety of different factors, like recent weather events, increasing crime, the number of claims filed in the area, and your personal claim history. If your home insurance rate is increasing every year, it’s a good idea to shop around for new quotes. You might be able to find a cheaper policy from a different insurance provider. 

What does homeowners insurance cover in Michigan? 

Homeowners insurance in Michigan includes dwelling insurance, personal property insurance, liability insurance, medical payments insurance, and loss of use insurance. Home insurance usually covers the same things regardless of your insurance company or state. Many Michigan insurance companies also offer home insurance endorsements, which are optional policies that can fill gaps in your basic policy and provide more customized protection.