Average homeowners insurance cost in Michigan

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Whether you’re buying a new home or safeguarding the one you already own, it’s important to have comprehensive homeowners insurance. However, the amount you’ll pay depends on the insurance company and the coverage limits you choose.

Homeowners insurance in Michigan costs an average of $2,396 a year, according to Insure.com’s study.

Read this guide to learn more about the average homeowners insurance rates in Michigan by insurance company and ZIP code.

Key Takeaways

Homeowners insurance costs an average of $2,396 a year, based on our 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

In Michigan, the annual homeowners insurance cost is $2,396, on average for the limits of $100,000 in liability, $300,000 in dwelling coverage and a $1000 deductible.

Increasing your dwelling coverage from $300,000 to $400,000 will raise your annual homeowners insurance premium to $3,047 in Michigan, with $100,000 in liability protection and a $1,000 deductible. Below are the average costs for homeowners insurance in Michigan based on dwelling coverage limits 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

In Michigan, homeowners insurance companies set rates by assessing various risk factors. Your location, claims history, credit history and coverage limit all affect your premium.

If multiple claims have been filed in your neighborhood over the past few years, you’ll likely face higher home insurance rates than areas with fewer 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 a good idea to shop around and compare prices before purchasing homeowners insurance. Several factors come into play when choosing the best homeowners insurance company.

We evaluated homeowners insurance providers in Michigan by comparing their NAIC scores and AM Best ratings and compiled a list of the top insurers in the state. Based on Insure.com’s analysis, Auto-Owners received the lowest NAIC score and an AM Best rating of A++. A lower NAIC score signifies fewer complaints relative to the company’s size, indicating greater 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 provides the most affordable homeowners insurance in Michigan, with an average annual premium of $425. Auto Club Group – ACG (AAA) and Frankenmuth Insurance also offer cheap home insurance rates.

Shopping around for homeowners insurance can help you save hundreds of dollars annually.

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

Not every area in Michigan has the same home insurance cost. How much you pay for homeowners insurance in Michigan depends on many factors, including your ZIP code. Our data shows that 49682 ZIP has low-cost home insurance rates in Michigan, at about $1,927 a year or $161 monthly.

Below you can find 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

In Michigan, certain areas experience higher premiums because of higher crime rates, increased risk of natural disasters and the cost of living.

Homeowners in 48226 ZIP pay the highest insurance rates in Michigan, with an average annual premium of $5,518.

Below is a list of some of the most expensive ZIP codes in Michigan for homeowners 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.