The Best Homeowners Insurance in Michigan for 2021

The state has a lower-than-average overall rate despite several potential natural hazards.
Doug SiborAug 12, 2021

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

If you're a homeowner in Michigan, you'll typically pay less than the national average for your home insurance. At an average of $1,315 per year, home insurance in Michigan costs $270 less than the national average of $1,585.

NerdWallet analyzed rates from 15 insurers available in the state to determine the best homeowners insurance in Michigan. Keep in mind that these rates are estimates and depend on many different factors, so your cost may vary.

Best homeowners insurance companies in Michigan

Several of NerdWallet's best home insurance companies of 2021 offer policies in Michigan:

Company

NerdWallet rating

Average annual premium

Chubb

5.0

NerdWallet rating 

$1,370

The Hanover

4.5

NerdWallet rating 

$3,015

State Farm

4.5

NerdWallet rating 

$1,057

USAA*

4.5

NerdWallet rating 

$1,356

*USAA is available only to active military, veterans and their families.

You can customize your homeowners policy with numerous add-ons from these companies, but below are the types of coverage that generally come standard:

Type of coverage

What it does

Dwelling

Pays to repair or rebuild the structure of your home.

Other structures

Covers damage to unattached structures such as a shed or fence.

Personal property

Pays to repair or replace personal belongings such as furniture or clothing.

Additional living expenses

Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.

Liability

Covers legal expenses and damages if you're responsible for injuries to other people or their property.

Medical payments

Covers injuries to guests in your home, regardless of fault.

Here's more about each company and the extras they offer.

Chubb

Although Chubb is one of the more expensive insurers in the state, its standard policy includes coverage options that often cost extra at other companies. For example, homeowners who buy Chubb's Masterpiece policy can receive the full amount it costs to replace damaged or destroyed personal items rather than the depreciated value.

The Hanover

The Hanover offers several home insurance packages, some of which include features like reimbursement for replacing your locks after losing your keys or paying to remove debris after a covered event. It’ll also waive your deductible if a loss is more than $50,000.

State Farm

State Farm's standard "increased dwelling limit" coverage may appeal to homeowners because of the financial cushion it provides if you need to rebuild your home. As long as the home is insured for the amount State Farm estimates it will cost to replace it, State Farm provides up to an additional 20% of that amount should costs go up while rebuilding.

USAA

If you're an active military member or a veteran or are a family member of one, USAA offers several benefits that usually cost extra from other insurers. Identity theft coverage and replacement cost for damaged or stolen personal items are just two of the benefits available to policyholders in most states.

Cheapest homeowners insurance rates in Michigan

NerdWallet looked at the rates from each insurer in all 1,009 ZIP codes in Michigan to find the lowest home insurance premiums in the state. We found a statewide average annual premium of $1,315, but your rate may vary quite a bit depending on where you live. In fact, the difference between the cheapest and most expensive rates in Michigan was over $1,800 per year.

Here are the five cheapest homeowners insurance rates in Michigan:

Company

Average annual premium

Meemic

$707

Westfield

$760

Frankenmuth

$841

Pioneer State

$1,015

Michigan Farm Bureau

$1,040

And here's a look at the rates from all 15 insurers:

What to know about homeowners insurance in Michigan

Here are a few things you'll want to keep in mind when evaluating your options for home insurance in Michigan:

  • Consider flood insurance. Since 1978, Michigan homeowners with flood insurance have been paid nearly $100 million to cover damage. Flood damage isn't typically covered by homeowners insurance, so you'll likely need a separate flood insurance policy. This is an especially good idea if you live along the lakeshore or in an area prone to flooding.

  • Tornadoes might be a threat. Michigan sees an average of about 15 tornadoes per year. A standard homeowners insurance policy covers damage caused by a tornado, along with any additional living expenses you might have if you're temporarily displaced because of tornado damage.

  • Rates vary depending on where you live. Generally, the cost of homeowners insurance is higher in Detroit and the surrounding towns compared with the rest of the state. To see the average rate where you live, here's a look at the county-by-county breakdown:

Methodology

NerdWallet averaged rates for 40-year-old men and women from a variety of insurance companies in every ZIP code across the state. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1983. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.