MICHIGAN STATS
On average, Michiganians are paying $1,251 every month on homeownership costs. There are 4.6 million homes in the Great Lakes State, 71% of which are occupied by owners.
- Population: 9,995,915
- Average value of homes that’s occupied by owners: $136,400
- Households: 3,888,646
- Average household income: $52,668
- High school grad or higher, percent of people age 25 years +: 90%
- Average travel time to work: 24 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
Michigan is a midwestern state in the US ideal for nature lovers and families alike. Although home insurance premiums in MI are below the nation’s average, the area has faced some disastrous floods and rough winter storms. The June 2008 Midwest floods, which took eight lives in Michigan, resulted in approximately $17.8 million worth of property damages in Michigan alone.
The heat wave of 2006 derecho series also did a lot of damage to the agriculture sector. Strong winds with powerful thunderstorms caused severe losses to homes and fruit crops in the northern and lower parts of the state. In 2012, more than 100 homes were damaged when tornadoes hit southeastern Michigan.
Winter storms are also persistent in this state, which leave a profound impact on houses and other properties. Floods, heavy snowfall, winter storms and tornadoes are known threats if you are living in Michigan, which leads to a strong need for coverage for your property. Not only is coverage essential, so is getting a deal on the premium. Rates vary depending on where you live in the state and other factors, so be sure to collect as many quotes from different providers to find the best one for you. Our free comparison tool will give you a list of insurers in your area to help you collect rates faster. Learn more about premiums in Michigan below.
An overview: MI premiums
The homeowners insurance rate in Michigan is comparatively lower than the average national rate, with a difference of $240 between them. Insurance Information Institute (III) recorded that in 2016 (latest available data), the annual insurance premium rate was $952 in Michigan, while $1,192 was the national average. Your own rates will vary because premiums are affected by the value of the home, area or location, and exposure of that area to natural disasters.
Michigan is one of the most affordable states when it comes to homeowners insurance. However, the rates can differ according to the city. For instance, Grand Rapids, Holland and Ypsilanti are the most affordable cities in Michigan, so the premium prices here will be lower, while places like Detroit, Flint, and Dearborn tend to have higher premiums.
Average Michigan Home Insurance Premiums
| 2016 | 2015 | 2014 | |
|---|---|---|---|
| Monthly average | $79 | $76 | $72 |
| Annual average | $952 | $908 | $865 |
| National annual average | $1,192 | $1,173 | $1,132 |
| Rank | 37 | 39 | 39 |
Top Homeowners Insurance Companies In Michigan
Finding the best homeowners insurance policy can be a little tricky as you have to consider a few things before opting for any insurance provider. While floods can cause costly damages, most companies do not provide coverage for floods in their standard policy. If you live in an area with a high-risk of flooding, make sure that you’ve got an add-on coverage to protect you from unforeseen costs if water levels go above normal and causes destruction.
Following are the homeowners insurance companies in Michigan with the highest shares in the state’s home insurance market. The rankings and scores from particular agencies will also help you gauge what the companies are all about. We were not able to review all of the home insurance providers in Michigan, so when searching around for the best deal, remember to look to other providers for quotes, to ensure you’re getting the best deal in your area.
State Farm
State Farm is a well-known insurance company in Michigan, like in many other states, and is a high-rated company in the market with strong ratings from reputable agencies.
This company got an A++ (Superior) for financial strength from AM Best. It also scored 3 (About average) out of 5 Power Circle Ratings, as reported by JD Power. These ratings and scores are evidence of its timely payments, simple claims process, and satisfied customers. According to III, in 2017, this company had a 17 percent share in the Michigan homeowners insurance market.
It provides coverage for extreme weather conditions such as storms, lightning, fire, wind, and floods as well as different situations such as wreckage and theft. Their policies are suitable for people living in single-family homes, condominiums, farms, and manufactured homes.
At the time of floods, this company allows you to keep in touch with a qualified worker who can repair damaged floorings through its Premier Service Program. You may take advantage of its Double Check Discount feature, where the discount is automatically applied if you are eligible for one. This offer can further reduce your insurance premium rate by 40%. It claims to be available for its customers 24/7 through phone and web.
Auto-Owners
This company is located in Delta Township, Michigan and is known as the most substantial property and casualty insurance company in the state. It deals with auto, property, life and business insurance through independent agents.
This company scored 822 out of 1000 and received 3 (About average) out of 5 Power Circle Ratings in the JD Power 2018 U.S. Home Insurance Study. AM Best gave it an A++ (Superior) for financial strength. According to S&P, this company scored an AA (Very Strong). III revealed that in 2017, Auto-Owners acquired a 14.7 percent share in the home insurance market in MI.
Being a local insurance provider, this company knows all the difficulties Michigan homeowners have to face during storms and other extreme weather conditions. That’s why its ratings are high in terms of financial stability and customer satisfaction. The only drawback is that you cannot get online quotes because the company prefers working with independent agents.
Auto Club
This company was founded in 1902 and ranks 3rd regarding its share in the Michigan home insurance market, which was 14.1 percent in 2017. Customers of Auto Club have been getting great coverage for their homes.
Benefits or discounts are offered if you bundle home and auto insurance policies, if you have renovated the house recently or if you have installed security devices like burglary or fire alarms. Furthermore, there are exclusive discounts for customers over the age of 50.
It also offers Protection Plus and Platinum Advantage homeowners insurance policies, which extend the limits and coverage. It gives the most services for homes with higher values.
Rating from AM Best is A- (Excellent) for financial strength. Auto Club offers coverage according to Michigan weather conditions like tornadoes, hails, winds, frozen pipes and heavy snow.
Michigan Home Insurance Companies: Market Share and Summary of Ratings
| Rank | Insurer | Market Share % | AM Best | S&P | JD Power |
|---|---|---|---|---|---|
| 1 | State Farm | 17 | A++ | AA | 3 |
| 2 | Auto-Owners | 14.7 | A++ | AA | 3 |
| 3 | Auto Club | 14.1 | A- | NR | NR |
| 4 | Allstate | 8.7 | A+ | AA | 3 |
| 5 | Hanover | 8.1 | A | A | 2 |
| 6 | Michigan Farm | 5.7 | A- | NR | NR |
| 7 | Liberty Mutual | 5 | A | A | 3 |
| 8 | Farmers | 4 | A | A | 3 |
| 9 | USAA | 3.1 | A++ | AA+ | 5 |
| 10 | Frankenmuth | 2.8 | A | NR | NR |
Source: Insurance Information Institute, AM Best, S&P, JD Power
A Final Note On Our Top Companies
Michigan’s extreme weather situations show that you need the perfect coverage policy for your property. The companies mentioned above are the top three insurance providers in this state, with regards to their market share holdings and direct premiums written, as stated by III. Every insurance provider offers different discounts and policies according to your needs.
Flood insurance is the main issue here, as it’s usually not included in the standard home insurance policy. When choosing a policy, it’s essential that you know what you need coverage for and that your policy will suit all of it. Make sure that the agent outlines the coverage and explains what’s include and what’s not, based on your needs. This way, you’ll feel confident that you’re paying for a premium that could potentially save your bank account if a natural disaster hits your neighborhood.
Due to global warming, the weather is getting even more extreme. To make sure your company covers the current catastrophic events, you have to keep reviewing your policies. A tip here is to review your policy at least once a year or when a change happens, like getting a trampoline or working on the fence, as this can impact and change your needs and your policy.
If you’re a Michigan homeowner, insuring your home will probably be required by mortgage lenders. 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 homeowners insurance, how their rates compare to other states and ways to save money on your insurance.
How Michigan 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 $1,192 in 2016, the average for Michigan homeowners was $952.
According to III, in 2016, the states with the lowest average premiums were Oregon, Utah and Idaho, which had rates of $659, $664 and $703. On the other hand, Louisiana, Texas, and Florida charged the highest rates that year at $1,967, $1,937 and $1,918, respectively.
What does 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 homeowners policy.
- Renters – Also known as HO-4, this policy offers protection for rental properties.
- Condominium – Referred to as HO-6, this policy is similar to the HO-4 but it covers condominiums.
All 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 destroyed 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
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.
To learn more about saving on home insurance, read our article here.
Resources:
Insurance Information Institute
Wikipedia
For more assistance, please contact your local state department of insurance:
Michigan Department of Insurance
- 404-656-2070
- difs-info@michigan.gov
Check Out Michigan’s Neighboring States
- Illinois Home Insurance
- Indiana Home Insurance
- Minnesota Home Insurance
- Ohio Home Insurance
- Wisconsin Home Insurance
