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Michigan Home Insurance

Home insurance conceptIf you’re a Michigan homeowner, you know the need to carry home insurance on your home. Imagine if the unimaginable happened and you lost your home to fire or some other disaster. Without home insurance, you and your family could be homeless. Learn more about Michigan homeowner’s insurance, how their rates compare to other states and ways to save money on your insurance.

How Michigan Homeowners Insurance Rates Compare to Other States

Michigan home insurance insurance rates are substantially lower than what other states are charging for the same insurance policies. While the national average for home insurance in the U.S. was $1,132 in 2014, the average for Michigan homeowners was $865.

The states with the lowest rates were Utah, Idaho and Oregon, which had rates of $634, $590 and $574. At the other end, Florida, Texas and Louisiana charged the highest rates that year at $2,055, $1,947 and $1,847, respectively. This information came from the Insurance Information Institute.

What Does Michigan Homeowners Insurance Cover & Why Do I Need It?

Michigan homeowners have a few different policy types from which to choose.

  • Broad – This policy, also known as HO-2, covers damage to both the home and the possessions when loss occurs from specific perils.
  • All Risk – This policy, also known as HO-3, covers damage to the home and possessions when loss occurs from almost all covered perils. The HO-3 is the most common type of homeowner’s policy.
  • Renters – Also known as HO-4, this policy offers protection again rental property.
  • Condominium – Referred to as HO-6, this policy is similar to the HO-4 but it covers condominiums.
cheapest-homeowners-insurance1-300x200All of the policies offer liability coverage for legal issues or medical expenses. While the law does not require that homeowners carry home insurance on their home and possessions, it’s a good idea so the homeowner can replace the home if it’s damaged by fire, tornado or some other covered peril.

Homeowners who have a mortgage on their property are required by the lender to have insurance until the loan is paid in full. The amount of home insurance must be at least as much as is owed on the loan.

Ways to Save Money on your Michigan Home Insurance

With the economy as shaky as it is at times, homeowners are constantly looking for ways to save money. There are several ways Michigan homeowners can save on their home insurance.

  • Lower your coverage – If your coverage is much higher than the value of your home, you may consider lowering the coverage a little.
  • Watch your credit scores – Some insurance companies offer discounts for good credit and higher rates for poor credit.
  • Get a higher deductible – The higher deductible (what you pay before the insurance kicks in), the lower your insurance premiums. A good rule of thumb is don’t have your deductible any higher than what you can pay out of your next two paychecks.
  • Ask for discounts – Ask your agent if you are eligible for any possible discounts, such as bundling, good credit, claim-free or loyalty.