The Best Cheap Home Insurance in Michigan for 2022

Westfield is the cheapest home insurance company in Michigan, with an average annual rate of $977.
May 13, 2022

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If you're a homeowner in Michigan, you'll likely pay more than the national average for home insurance. The average annual cost of home insurance in Michigan is $1,958, which is almost 10% higher than the national average of $1,784.

NerdWallet analyzed policy rates from 15 different insurers for a home built in 1997 with $300,000 in dwelling coverage and a $1,000 deductible to determine the best and cheapest homeowners insurance in Michigan. But these rates are just estimates, and yours may be different.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data, and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

The best cheap homeowners insurance in Michigan

The following table lists companies with an average annual homeowners rate below Michigan’s state average of $1,958 per year. We’ve included the NerdWallet star rating for companies we’ve reviewed.

Company

Average annual rate

NerdWallet star rating

Westfield

$977

3.5

NerdWallet rating 

Fremont

$1,049

Not rated.

$1,120

4.0

NerdWallet rating 

Frankenmuth

$1,486

Not rated.

Wolverine Mutual

$1,609

Not rated.

Hastings Mutual

$1,675

Not rated.

Cincinnati Insurance

$1,856

4.0

NerdWallet rating 

$1,937

5.0

NerdWallet rating 

$1,473

5.0

NerdWallet rating 

*USAA generally serves the military community, and homeowners insurance policies are not available to everyone.

Your own coverage needs may differ from the sample policy above, and these companies may not be the cheapest for you. You should shop around and compare quotes from multiple companies to be sure you’re getting the best rate.

Here’s more information on a few of the companies from the table above.

The cheapest: Westfield

Westfield offers the cheapest home insurance in Michigan, with an average annual rate of almost $1,000 less than the state average — a 50% difference. The company also has strong customer satisfaction, with fewer complaints to state regulators compared to other insurance companies of similar size.

Homeowners can add optional coverage types to their policies, including equipment breakdown coverage, which covers the cost to repair or replace home appliances like washers and dryers, dishwashers and even printers and computer monitors. Identity theft coverage is also available, with up to $20,000 in coverage for expenses that arise from your identity being stolen. If you do experience identity theft, you’ll receive free credit and fraud monitoring for one year.

If you bundle your home and auto insurance with Westfield, the company automatically includes replacement cost coverage and roadside assistance.

Policies must be purchased through an agent. Claims can only be filed over the phone, but representatives are available 24/7.

The most affordable five-star option: Chubb

Chubb’s average annual rate of $1,937 falls just below the state average, and the company received a 5-star NerdWallet rating. Chubb caters to high-value homes and boasts strong customer satisfaction and a wide array of optional coverage types and discounts.

Home insurance policies come included with a lot of great features, including extended replacement cost, additional living expense coverage, coverage to rebuild your home up to current building codes in the event of a claim, plus replacement cost value for your belongings. The company also offers a wide range of liability limits, from $1 million to $100 million.

Policies must be purchased directly from an agent. Claims can be filed online or by phone.

Learn more about the company with our Chubb home insurance review.

The best combo of cheap rates and quality coverage: State Farm

Not only does State Farm have some of the cheapest rates in Michigan — more than 40% cheaper than the state average — but it also has strong customer satisfaction, which contributes to the company’s 4-star NerdWallet rating.

State Farm’s attention to customer service can be attributed to its wide network of agents. If you prefer working directly with an agent, this is the company for you.

The company includes an increased dwelling limit add-on in all of its home insurance policies as long as homeowners have insured their homes up to the estimated replacement cost. This coverage automatically extends replacement coverage up to 20% higher.

State Farm offers identity theft coverage and discounts for bundling your home with another insurance policy, installing home security devices like smoke or burglar alarms, plus a discount for installing impact-resistant roofing shingles.

The cheapest Michigan homeowners insurance for different scenarios

We analyzed rates for a variety of scenarios that can affect home insurance prices. For example, new homes usually cost less to insure, while a recently filed claim in your history may increase your premium. Here are the cheapest home insurance companies in Michigan for some common situations.

The cheapest homeowners insurance in Michigan for those with a claims history

You’ll pay more if you’ve filed a claim within the last few years, so we analyzed rates for homeowners who’ve filed a recent water claim in Michigan. Below are the cheapest companies, on average.

Company

Average annual rate

NerdWallet star rating

Westfield

$1,133

3.5

NerdWallet rating 

State Farm

$1,276

4.0

NerdWallet rating 

Fremont

$1,444

3.5

NerdWallet rating 

Cincinnati Insurance

$1,856

4.0

NerdWallet rating 

Frankenmuth

$1,862

Not rated.

We also analyzed rates for Michigan homeowners who’ve filed a recent windstorm claim:

Company

Average annual rate

NerdWallet star rating

Westfield

$977

3.5

NerdWallet rating 

Fremont

$1,111

3.5

NerdWallet rating 

State Farm

$1,277

4.0

NerdWallet rating 

Wolverine Mutual

$1,609

Not rated.

USAA*

$1,609

5.0

NerdWallet rating 

*USAA generally serves the military community, and homeowners insurance policies are not available to everyone.

The cheapest homeowners insurance in Michigan for newer homes

You’re more likely to pay less than the state average for home insurance if you’ve purchased a new home. Below are Michigan’s cheapest companies on average for a home built in 2021.

Company

Average annual rate

NerdWallet star rating

Westfield

$699

3.5

NerdWallet rating 

Fremont

$707

3.5

NerdWallet rating 

State Farm

$710

4.0

NerdWallet rating 

Cincinnati Insurance

$950

4.0

NerdWallet rating 

USAA*

$742

5.0

NerdWallet rating 

*USAA generally serves the military community, and homeowners insurance policies are not available to everyone.

The cheapest homeowners insurance in Michigan for higher deductibles

Increasing your deductible — how much you pay if you file a claim — is a guaranteed way to lower your home insurance costs. Below are the cheapest companies in Michigan, on average, for a policy with a $2,500 deductible.

Company

Average annual rate

NerdWallet star rating

Fremont

$825

3.5

NerdWallet rating 

Westfield

$903

3.5

NerdWallet rating 

State Farm

$932

4.0

NerdWallet rating 

Frankenmuth

$1,308

Not rated.

USAA*

$1,277

5.0

NerdWallet rating 

*USAA generally serves the military community, and homeowners insurance policies are not available to everyone.

Average homeowners insurance cost in Michigan by city

How much you pay for home insurance in Michigan will depend greatly on your zip code. For example, homeowners in Detroit pay an average of more than $2,500 a year for coverage while those in Ann Arbor pay closer to $1,600 on average.

Below are the average home insurance rates in some of Michigan’s largest cities.

City

Average annual rate

Average monthly rate

Ann Arbor

$1,597

$133

Battle Creek

$2,012

$168

Canton

$1,970

$164

Clinton Township

$1,979

$165

Dearborn

$2,288

$191

Detroit

$2,531

$211

Farmington Hills

$2,196

$183

Flint

$2,478

$206

Grand Rapids

$1,802

$150

Holland

$1,671

$139

Jackson

$1,945

$162

Kalamazoo

$1,851

$154

Lansing

$1,905

$159

Livonia

$2,157

$180

Rochester Hills

$2,053

$171

Saginaw

$2,052

$171

Sterling Heights

$2,029

$169

Warren

$2,256

$188

Wyoming

$1,780

$148

Ypsilanti

$1,921

$160

What to know about Michigan homeowners insurance

Here are a few things to keep in mind when evaluating home insurance options in Michigan.

Flooding

Michigan does experience flooding, and flood damage isn’t typically covered by homeowners insurance. If you live in a high-risk zone for flooding, such as along a lake or river, you’ll likely be required by your mortgage lender to purchase flood insurance. But you could be at risk no matter where you live, so flood insurance may still be worth considering. You can use the Federal Emergency Management Agency's flood maps to see the likelihood of flooding in your area.

Tornadoes

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.

Michigan Basic Property Insurance Association

If you’re unable to find an insurance company to insure your home, work with an agent to apply to the Michigan Basic Property Insurance Association, or MBPIA.

How to get cheaper Michigan home insurance

Here are some tips to help you save on home insurance in Michigan.

  • Secure your home. Insurers typically offer discounts for installing devices like smoke and burglar alarms, smart-home devices, sprinkler systems and deadbolts.

  • Bundle multiple policies. You can usually get a discount for buying more than one policy from the same company. Learn more about how you can save by bundling home and auto insurance.

  • Shop around. NerdWallet recommends homeowners shop for home insurance quotes once a year to get the best rate. Compare quotes from at least three companies, and be sure you’re looking at equal coverage limits and deductibles.

For more ideas, read our article on how to lower homeowners insurance rates.

Michigan Department of Insurance and Financial Services

You can file a complaint against your insurance company or learn more about how home insurance works from Michigan’s Department of Insurance and Financial Services. Its website lets homeowners submit a complaint electronically, plus offers information about home insurance laws and where to shop for it. Assistance is available by calling 877-699-6442.

Looking for more insurance in Michigan?

Frequently asked questions

Home insurance isn’t required by law in Michigan. But if your home is financed, your mortgage lender will likely require that you carry it. Home insurance can be a good idea even if you don’t have a mortgage since an unexpected disaster could result in damage that is expensive to repair.

Michigan home insurance costs an average of $163 per month, or $1,958 per year, for homeowners with $300,000 in dwelling and liability coverage, no recent claims and a $1,000 deductible.

Your home insurance policy may cover mold if the damage is from a repair that was covered by your insurer or was the fault of a contractor. However, if the mold is due to water damage from your own negligence, you’re likely responsible for its removal. Learn more about if homeowners insurance covers mold.

Methodology

NerdWallet averaged rates for 40-year-old homeowners 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 1997. 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.

  • $1,000 in medical payments coverage.

We used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single wind or water damage claim.

  • To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.

  • For homeowners with newer homes, we changed the year the house was built to 2021.

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

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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