How Much Is Home Insurance In Michigan? 2025
Homeowners insurance in Michigan costs on average of $1,822 per year, though costs vary widely based on insurer, claims history, credit score, location, home age, and coverage amount. We break down average rates by city and provider, explain key pricing factors, and walk you through how to buy the right policy.
We’ve saved shoppers an average of $450 per year on their home insurance.
Like many other costs, home insurance rates are going up, and Michigan is no exception. What’s worse, your rates can increase even more if you file a claim, sometimes by as much as 25% if your home is a total loss.
With over 20 years of experience in the industry, I can assist you in finding an affordable insurance provider. Here’s what you need to know about home insurance prices in Michigan.
Key Takeaways
The average annual cost of homeowners insurance in Michigan in 2024 was $1,822.
The most affordable insurance provider in Michigan is Auto Owners Insurance .
Common natural disasters in Michigan include severe storms, floods, and tornadoes, making good home insurance important. Not every policy will cover natural disasters, so it’s important to check the small print.
Estimating the cost of home insurance is difficult, as each company considers these factors differently.
How Much Is Homeowners Insurance In Michigan?
In 2024, the average yearly cost of homeowners insurance in Michigan was $1,822, which is lower than the national average. However, insurance rates in Michigan and across many states are expected to keep rising. As storms become more intense, causing stronger winds and flooding that damage more homes, premiums will likely increase.
Average Home Insurance Cost In Michigan – By Insurance Carrier
Homeowners insurance premiums in Michigan can differ greatly between providers, even for similar coverage. For example, Auto-Owners offers much lower rates than the state average, while The Hanover might be more expensive.
Here are some examples of average home insurance prices by insurance carriers.
| Insurance Carrier | Average Annual Premium |
| Auto-Owners | $349 |
| State Farm | $1,536 |
| The Hanover | $3,332 |
| ASI | $1,223 |
| Chubb | $1,774 |
| Farmers | $1,745 |
| Encompass | $3,053 |
| USAA | $1,857 |
Note: Some carriers may offer lower premiums by using different pricing models or discounts, while others might charge higher rates based on their own risk assessments.
Average Home Insurance Cost In Michigan – By Claims History
Your claims history can significantly impact your home insurance premiums in Michigan. If you haven’t filed any claims, you’re likely to receive lower premiums, as insurers view you as a lower risk. However, if you have a history of multiple claims, your premiums could rise significantly
| Number of Claims | Average Annual Premium |
| None | $1,822 |
| 1 | $2,128 |
| 2 | $2,439 |
Note: Insurance providers view multiple claims as an indicator of higher risk, which often results in increased rates or difficulty finding affordable coverage.
Average Home Insurance Cost In Michigan – By Credit Score
In Michigan, unlike some states, credit scores play a key role in determining insurance premiums. Homeowners with excellent credit pay an average of $1,307 per year, while those with poor credit typically face much higher costs.
| Credit Score | Annual Average Premium |
| Poor (300-579) | $8,972 |
| Fair (580-669) | $3,989 |
| Good (670-739) | $2,664 |
| Very Good (740-799) | $1,855 |
| Excellent (800-850) | $1,307 |
Average Home Insurance Cost For New Homes In Michigan
Insurance companies typically charge lower premiums for newly built homes because these properties are less likely to experience problems that are common in older homes, such as faulty wiring or deteriorating roofs, which can lead to damage requiring insurance claims. The average cost of home insurance for a Michigan property built in 2024 was $1,012 annually.
| Age of Home | Average Annual Premium |
| New | $1,012 |
| 10 | $1,822 |
| 20 | $2,768 |
| 30 | $3,991 |
Average Home Insurance Cost In Michigan – By Coverage Amount
In general, the more coverage you choose, the higher your premiums will be. When deciding how much coverage you need, it’s important to ensure you can cover the cost of rebuilding your home and replacing personal belongings in the event of a total loss. The average cost of a home in Michigan insured for $250,000 is $1,822 per year.
| Coverage Limit | Average Annual Premium |
| $100,000 | $1,066 |
| $250,000 | $1,822 |
| $500,000 | $3,081 |
| $750,000 | $4,262 |
| $1,000,000 | $5,693 |
| $2,000,000 | $7,143 |
| $3,000,000 | $10,776 |
Average Home Insurance Cost For Different Cities In Michigan
Your ZIP code can impact how much you pay for home insurance. If you live in an area with a history of issues like theft, vandalism, or severe weather, you may face higher premiums.
For example, in Detroit, residents face much higher premiums, averaging $3,538 a year. This can be due to the city’s high crime rate and environmental issues. Below are a few examples of rates you can expect in various cities within Detroit.
| City | Average Annual Premium |
| Detroit | $3,538 |
| Ann Arbor | $1,384 |
| Lansing | $1,413 |
| Grand Rapids | $1,465 |
| Warren | $2,184 |
| Sterling Heights | $1,644 |
| Battle Creek | $1,532 |
| Clinton Township | $1,534 |
| Kalamazoo | $1,443 |
| Rochester | $1,544 |
How To Estimate Your Homeowners Insurance Policy Cost
Insurance companies consider several factors when determining your homeowners insurance rates, which ultimately affect your monthly premiums. Some key factors that influence your insurance price include:
- Location: Your state and ZIP code can impact your premiums. For example, if you live in an area prone to tornadoes, your rate may be higher.
- Dwelling Coverage: This covers the physical structure of your home. Insurance companies use tools to assess the cost of rebuilding your home when determining this coverage.
- Claims History: Insurers often look at previous claims made within a certain period when setting your rate. A history of claims could lead to higher premiums.
Note: It’s important to make sure your dwelling coverage amount is enough to fully rebuild your home in case of a total loss, as the cost to rebuild can be higher than the market value of your home.
- Deductible: The deductible is the amount you pay out of pocket before insurance kicks in. Choosing a higher deductible may lower your premium, but it could increase your costs if you file a claim.
- Credit History: In most states (except California, Maryland, and Massachusetts), insurers can use your credit score to help assess the risk and set your insurance rate. So it’s important to maintain a good credit score
How To Buy Home Insurance In Michigan
With many different providers and policy options available in Michigan, it’s important to understand what factors affect your premium and coverage choices and how to buy inusrance. To begin the process of buying home insurance in Michigan, homeowners should follow the steps outlined below.
Evaluate Your Coverage Requirements
Assess the coverage you need for your home, personal property, and liability. Make sure your policy will fully protect the value of your home and belongings.
Compare Quotes from Multiple Insurers
Get quotes from different insurance companies to compare prices and coverage options. This helps you find the most cost-effective plan with the best protection.
Understand Different Policy Options
Familiarize yourself with various policy types, such as HO-3 and HO-5, to select the one that meets your needs. Each type provides different levels of coverage for your property.
Inquire About Available Discounts
Look for potential discounts, like bundling your home and auto insurance, installing security systems, or maintaining a clean claims history. These can reduce your insurance costs.
Carefully Review and Confirm Your Policy
Thoroughly review the details of your policy to ensure everything is correct. Check coverage limits, deductibles, and exclusions to ensure you’re fully covered, as some areas are not protected in standard home insurance.
FAQs
Why is homeowners insurance in Michigan so expensive?:
Homeowners insurance in Michigan is often considered more affordable compared to other states. While premiums may be higher in some areas due to local risks such as severe weather or flooding, overall, Michigan’s home insurance rates are typically lower than the national average.
How much is homeowners insurance per month in Michigan?
The average cost of homeowners insurance in Michigan is approximately $154 per month, which is lower than the national average. Rates can vary depending on factors like the location, value of the home, and coverage options.
Does Homeowners Insurance Cover Theft?
Yes, standard homeowners insurance usually covers theft at home and away, including stolen personal items like electronics and furniture. High-value items such as jewelry may have coverage limits unless you add extra protection. Theft isn’t covered if the home is vacant for over 60 days, and stolen vehicles or boats require separate policies. Always file a police report, document losses, and contact your insurer to file a claim.
Does Homeowners Insurance Cover Fire?
Homeowners insurance typically covers fire damage, including your home, belongings, and temporary living costs. However, it won’t cover intentional fires or those in high-risk wildfire areas unless you have added protection like wildfire insurance.
Sources
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- Michigan Gov – Homeowners Insurance Guide
- The Conversation – Why Home Insurance Rates Are Rising Fast Across The US – Climate Change Plays A Big Role
- Crains Grand Rapids – Why Are Michigans Home Insurance Rates Spiking?
- Bankrate – Factors That Impact Your Cost of Homeowners Insurance
