Average homeowners insurance cost in Michigan

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Whether you’re buying a new home or want to protect the property you currently own, it’s important to have sufficient homeowners insurance coverage in place. However, home insurance policies can get expensive, depending on your insurer and the coverage level you choose.

On average, Michigan homeowners insurance costs $2,396 a year, based on Insure.com’s data.

Learn more about the average homeowners insurance rates by company and ZIP code in Michigan.

Key Takeaways

Homeowners insurance costs an average of $2,396 a year, based on Insure.com analysis.
Of all the ZIP codes in Michigan, 49682 has the most affordable home insurance rates at around $1,927 annually.
In Michigan, Auto-Owners provides the most affordable home insurance at an average annual premium of $425.

Average home insurance cost in Michigan by coverage level

The average cost of homeowners insurance in Michigan is $2,396 per year for the coverage limits of $300,000 dwelling coverage and $100,000 liability with a $1,000 deductible.

However, if you increase the dwelling coverage limit from $300,000 to $400,000, you will pay $3,047 per year for homeowners insurance in Michigan for $100,000 in liability protection and $1,000 deductible. Below, you can find the average cost of homeowners insurance in Michigan for dwelling coverage of $300,000, $400,000 and $500,000.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$1,809	$151
$200,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$1,825	$152
$300,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$2,396	$200
$300,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$2,411	$201
$400,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$3,047	$254
$400,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$3,063	$255
$600,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$4,186	$349
$600,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$4,203	$350
$1,000,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$6,627	$552
$1,000,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$6,646	$554

Homeowners insurance companies in Michigan decide rates based on risk. They consider your location, claims history, credit history and coverage limit when calculating premiums.

If your neighborhood has seen many claims over the past few years, you can expect to pay higher home insurance rates than an area with few to no claims. Your credit score can also play a role in determining your home insurance costs.

According to S&P Global Market Intelligence’s RateWatch application, the average homeowners insurance premium for owner-occupied homes nationwide increased by over 11% in 2023.

Best homeowners insurance companies in Michigan

It’s always wise to shop around and compare prices before you buy homeowners insurance. There are many factors that go into deciding the best homeowners insurance company.

We have compared the insurers in Michigan using their NAIC score and AM Best rating and compiled a list of the best homeowners insurance in Michigan. Based on the analysis, Auto-Owners received the lowest NAIC score and A++ rating from AM Best. A lower NAIC score indicates fewer complaints relative to the company’s size, suggesting higher customer satisfaction.

Company	Average annual premium	AM Best rating	NAIC Complaint Index	Overall score
Auto-Owners	$425	A++	0.33	5
Frankenmuth Insurance	$1,728	B++	0.03	4.82
Michigan Farm Bureau	$6,232	A-	0.25	4.78
Auto Club Group – ACG (AAA)	$1,468	A	0.29	4.66
Farmers	$2,800	A	0.54	3.99
The Hanover	$3,284	A	0.5	3.95
State Farm	$2,026	A++	0.95	3.74

Average homeowners insurance cost by company in Michigan

Auto-Owners offers the most affordable homeowners insurance in Michigan, at an average annual premium of $425, followed by Auto Club Group – ACG (AAA) and Frankenmuth Insurance.

You can save hundreds — if not thousands — of dollars each year if you shop around for homeowners insurance.

Here are the average annual and monthly insurance rates for Michigan homeowners for a policy with $300,000 dwelling coverage and $100,000 liability protection with a $1,000 deductible.

Company	Average annual rate	Average monthly rate
Auto-Owners	$425	$35
Auto Club Group – ACG (AAA)	$1,468	$122
Frankenmuth Insurance	$1,728	$144
State Farm	$2,026	$169
Farmers	$2,820	$235
The Hanover	$3,284	$274
Michigan Farm Bureau	$6,585	$549
USAA*	$2,140	$178

*USAA is only available to military community members and their families.

Michigan homeowners insurance rates by ZIP code

In Michigan, insurance companies evaluate the risk associated with specific locations to determine premiums. ZIP codes with higher crime rates or a history of natural disasters are often considered high-risk, resulting in higher insurance premiums. Additionally, the cost of rebuilding or repairing homes in a particular ZIP code can influence your price for a homeowners insurance policy.

Shop around and compare quotes from different insurance companies to find the best home insurance rates in Michigan. Also, remember to inquire about any discounts, such as bundling policies or smart home discounts, to help lower your premium.

Most affordable ZIP codes for home insurance rates in Michigan

Home insurance costs vary across different areas in Michigan. What you pay for homeowners insurance depends on several factors, including your ZIP code. According to our data, the 49682 ZIP code has the lowest home insurance rates in Michigan, at $1,927 annually or $161 per month.

Here are the homeowners insurance rates for some of the most affordable ZIP codes in Michigan.

ZIP code	Average annual rate	Average monthly rate
49682	$1,927	$161
49654	$1,937	$161
49870	$1,950	$163
48109	$1,962	$163
49877	$1,965	$164
49783	$1,966	$164
49835	$1,972	$164
49876	$1,974	$165
49719	$1,980	$165
48104	$1,981	$165

Most expensive ZIP codes for home insurance rates in Michigan

Your ZIP code is a key factor in determining the cost of your homeowners insurance coverage. In Michigan, certain areas have higher insurance premiums due to elevated crime rates, increased risk of natural disasters, and higher living costs.

48226 has the most expensive homeowners insurance rates in Michigan at an average annual cost of $5,518.

Below, we’ve highlighted some of the most expensive ZIP codes in Michigan for home insurance:

ZIP code	Average annual rate	Average monthly rate
48226	$5,518	$460
48205	$5,491	$458
48234	$5,425	$452
48223	$5,343	$445
48213	$5,331	$444
48221	$5,258	$438
48235	$5,232	$436
48224	$5,213	$434
48219	$5,168	$431
48227	$5,133	$428

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in Michigan by city

See rates in your city

Home insurance rate trend in Michigan

We analyzed home insurance rate trends in Michigan and found that homeowners insurance rates experienced an overall increase of 4% or $90, from 2022 to 2023.

The following data highlights the changes in homeowners insurance rates since 2019.

2019 rates	2022 rates	2023 rates
$1,889	$2,306	$2,396

Finding the right homeowners insurance requires thorough research and comparing rates from different insurers, as each has its own way of assessing risk. By gathering quotes from at least three companies, you can increase your chances of getting the most affordable coverage in Michigan.

Resources & methodology

Source

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed September 2024.

Methodology

Insure.com worked with Quadrant Information Service to get homeowners insurance data. We analyzed 20,739,560 insurance quotes from 82 national and regional insurance companies across 34,588 ZIP codes to determine the average premiums.

The insurance rates are based on a sample profile of a homeowner with good credit and the following coverage level:

$300,000 dwelling coverage
$100,000 liability protection
$1000 deductible

We have taken into account 3 important factors such as average annual cost, NAIC score and AM Best rating, to determine the list of best homeowners insurance companies. The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.