Cheapest homeowners insurance in Michigan

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You can save hundreds — if not thousands — of dollars each year if you shop around for homeowners insurance. Saving money on homeowners insurance in Michigan can be challenging if you don’t know the facts.

Safeco has the lowest average homeowners insurance rates in Michigan, with an average premium of $1,452 a year or $121 a month.

The good news is that Insure.com has simplified matters by carefully researching carriers and prices to find cheap homeowners insurance in Michigan. We’ve ranked the most affordable homeowners insurance providers in Michigan to help you in this process. Read further for our recommendations and for additional strategies designed to help you pay less for premiums.

Cheapest homeowners insurance companies in Michigan

Safeco, USAA and Allstate have the cheapest homeowners insurance in Michigan, on average. 

There’s a large rate difference between home insurance companies. Michigan homeowners could save more than $1,000 by shopping around and comparing insurance quotes.

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

Best homeowners insurance companies in Michigan

There’s more to the best homeowners insurance companies than just rates, but if price is your main criteria, some Michigan homeowners insurance companies have lower rates than others.

Let’s take a look at the three cheapest homeowners insurance companies in Michigan.

Safeco

• Headquarters: Seattle, Washington
• Founded: 1923 (acquired by Liberty Mutual Group in 2008)
• Contact: (800) 332-3226; Safeco.com
• Available: In all 50 states
• Discounts available: Multi-policy, protective devices, new home, safe driver, anti-theft device, paid-in-full, preferred payment, claims-free, advance quote
• Other types of insurance offered: Auto, recreational vehicle, motorcycle, renters, condo, landlord, umbrella, identity theft, business
• Insure.com score: 4 out of 5 stars
• Better Business Bureau rating: A+
• A.M. Best rating: A
• J.D. Power rating: Below average (score — 82 out of 1,000)

A subsidiary of Liberty Mutual, Safeco provides standard (called “Essential”) policies covering personal property, personal liability and dwelling protection. Package policies include a single-loss deductible. For example, if you file a home loss claim and pay a deductible, that money will apply toward deductibles required for other Safeco policies (such as auto).

Among customers surveyed by Insure.com, 95% indicated that they plan to renew their policies with Safeco. Four in five said they would recommend Safeco to a friend.

USAA

• Headquarters: San Antonio, Texas
• Founded: 1922
• Contact: (800) 531-8722, USAA.com
• Available: In all 50 states but only to active or veteran military members and their families
• Discounts available: Loyalty, multi-policy (10%), claims-free (up to 10%), fire/burglar alarm
• Other types of insurance offered: Auto, renters, condo, flood, umbrella, life, annuities, business
• Insure.com score: 4.5 out of 5 stars
• Better Business Bureau rating: B
• A.M. Best rating: A++
• J.D. Power rating: #1 (overall customer satisfaction, lowest annual shopping rate for existing customers, price satisfaction)

Policies issued by USAA Property and Casualty Insurance include standard coverage that commonly costs extra elsewhere. These extras include replacement cost coverage on roof repair/replacement and personal property, military uniform and equipment coverage (if your uniform or equipment is damaged or stolen during a covered event and you are on active duty or deployed), home-sharing coverage and identity theft coverage.

Among the options you can choose are an additional 25% of coverage for your dwelling and other structures and for increased building costs, debris removal and building ordinance/law coverage. What’s more, USAA provides unlimited loss of use coverage for up to 12 months.

On the downside, there are no physical branches, so you must get a quote online or via smartphone.

Allstate

• Headquarters: Northbrook, Illinois
• Founded: 1931
• Contact: (877) 366-1607, Allstate.com
• Available: In all 50 states
• Discounts available: Loyalty (up to 10%), multi-policy (up to 25%), claims-free (up to 20%), fire/burglar alarm, Easy Pay Plan (up to 5%), early signing (up to 10%)
• Other types of insurance offered: Auto, renters, condo, life, identity theft, business, home-sharing
• Insure.com score: 4 out of 5 stars
• A.M. Best rating: A+
• J.D. Power rating: Above average (score — 829 out of 1,000)

Allstate provides a plethora of homeowners insurance coverages and options. Usually included in standard policies are coverages for dwelling plus other structures, liability, personal property, loss of use/additional living expenses and medical payments to guests.

Allstate ranked in the top five for Insure.com’s annual Best Home Insurance Companies review, earning four out of five stars. In fact, this insurer garnered four-star scores across the board in claims, customer service and website/apps.

Allstate customers we polled indicated that 89% plan to renew their Allstate policies, while 79% said they would recommend Allstate to a friend.

Cheapest homeowners insurance in Michigan by city

Location is a crucial part of your home insurance rate.

Areas with more claims pay higher rates than ones that don’t have many. Comparing Michigan cities, Detroit has much higher rates than Grand Rapids, Lansing and Ann Arbor.

Here are the average home insurance rates by city in Michigan:

Other factors that go into your homeowners insurance rate are the age of your home, the type of construction, the size of your home, the coverage levels, the deductible and even your credit score.

Homeowners insurance companies weigh these factors differently. That’s why you should get quotes from at least three homeowners insurance companies, so you can see which one has the best rate for your specific situation.

How much is homeowners insurance in Michigan?

The average cost of homeowners insurance in Michigan is $2,153 annually for $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible. Michigan homeowners insurance rates are in the middle for average home insurance rates — 25th place in the U.S.

One primary driver of home insurance cost is claims history. Here are the top average home insurance percentage premium increases based on claims:

• Filing a second fire claim — 60%
• Filing a second theft claim — 55%
• Filing a second liability claim — 52%
• Filing a second water damage claim — 50%
• Filing a second medical claim — 34%
• Filing a second weather claim — 29%
• Filing a fire claim — 29%
• Filing a theft claim — 27%
• Filing a liability claim — 25%
• Filing a water claim — 25%
• Filing a medical claim — 18%
• Filing a weather claim — 17%

Filing claims isn’t always wise. You have to pay the deductible when you file a claim and your cost of homeowners insurance will likely increase.

When should you file a claim? File a home insurance claim when the damage or theft is much more than your deductible.

How much is flood insurance in Michigan?

The average flood insurance cost in Michigan is $974.65. That figure is based on dividing the number of policies and the total policy cost from the National Flood Insurance Program (NFIP) for the state.

Homeowners insurance typically doesn’t cover flood damage. A home policy will likely handle damages by burst pipes or an overflowing washing machine. However, a flood from outside your home isn’t covered by home insurance. Instead, you need a separate flood insurance policy.

The NFIP and private insurance companies offer flood insurance. Flood insurance premiums are standard based on risk, so you don’t have to shop around for coverage like with other types of insurance unless you want additional flood coverage.

A home in a flood zone or along the coast will likely cost more to insure with flood coverage than a home outside a flood zone. That said, your home may still be at risk of flooding even if you don’t live in a flood zone. About 20% of flood insurance claims come from properties that are considered low or moderate risk.

You can get a quote from the NFIP or check with local insurance carriers to see if they offer flood insurance.

Flood insurance takes effect 30 days after purchase, which means you can’t get a policy right before a potential massive storm hits.

How to get the cheapest Michigan homeowners insurance

Shop carefully when you’re looking for the most affordable homeowners insurance coverage, says Kris Hall with Meadowbrook Insurance Agency in Southfield, Michigan.

“In general, insurers do not share risk data. Therefore, they price their policies according to their own loss experience for a given territory or customer risk profile,” he says. “This is why your neighbor could be paying half of what you pay, even though each of you owns very similar homes.”

For example, say insurance company A had several losses in your ZIP code last year. If so, their rates might skyrocket the following year. Meanwhile, assuming insurance company B had minimal losses, they may yield far lower rates for their policyholders.

“Insurance companies also compile several factors into a proprietary formula called an ‘insurance score.’ The better your score, the lower your price,” adds Hall. “But as consumers, we never know exactly what our insurance score is or what goes into it. One carrier may quote the best rates for insurance scores that weigh more heavily in favor of newer homes, while a different carrier might prioritize insurance scores that more heavily factor in the year of a roof replacement.”

That’s yet another reason to comparison shop insurers and request fresh rate quotes at least every three to five years. Hall says doing so can help you find the best deal and save the most money on premiums.

Eric Nerhood, owner of Seal Beach, California-headquartered Premier Property Buyers, notes that what you pay can also depend on your address.

“Finding inexpensive homeowners insurance in Michigan will depend upon your property’s location. I found that Ann Arbor homeowners pay the lowest rates, followed by those who live in Wyoming, Kentwood, Grand Rapids and Kalamazoo,” explains Nerhood.

Fortunately, not every factor evaluated by insurers is out of your control. To pocket more greenbacks, do your due diligence and follow proven savings strategies, including bundling your policies.

“Try to bundle your home and auto policies with one carrier to get a discount. Also, seek to obtain price quotes at least 10 days before the desired start date of your new policy,” advises Hall.

Additionally, be savvy about filing insurance claims — don’t risk a big surcharge for a small insurance benefit.

“In other words, think twice about filing a claim if your out-of-pocket repair costs clearly exceed your deductible, if your loss is caused by normal wear and tear or if you had a recent claim within the past three years,” Hall adds.

Mark Friedlander, director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida, says the savings opportunities don’t end there.

“Contact your insurance company to learn about what steps you can take to make your home more resistant to windstorms and winter weather hazards. You may be able to save on your premiums by reinforcing your roof, installing gutter guards or adding extra installation to your attic, basement and crawl space,” he suggests.

It won’t hurt to improve your home’s security, as well.

“You can usually get discounts of at least 5% for a smoke detector, burglar alarm or deadbolt locks,” says Friedlander. “Some companies offer to cut your premium by as much as 15% or 20% if you install a sophisticated sprinkler system and a fire and burglar alarm connected to your local police, fire, or other monitoring stations.”

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.

Les Masterson

Contributor

 

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Les, a former managing editor, insurance, at QuinStreet, has more than 20 years of experience in journalism. In his career, he has covered everything from health insurance to presidential politics.

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