If you're a homeowner in Michigan, you'll likely pay less than the national average for home insurance. The average annual cost of home insurance in Michigan is $1,345, which is considerably less than the national average of $1,820.
We compared rates from companies across the state to find the best homeowners insurance in Michigan.
Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.
The best homeowners insurance in Michigan
If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.
NerdWallet star rating
Average annual rate
*USAA homeowners policies are available only to active military, veterans and their families.
More about the best home insurance companies in Michigan
See more details about each company to help you decide which one is best for you.
If you prefer working directly with an agent, State Farm may be the company for you. It has a wide network of agents throughout Michigan.
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.
Learn more in our State Farm homeowners insurance review.
Chubb caters to high-value homes and boasts strong customer satisfaction. Its policies are available only through agents.
Chubb home insurance comes with great features, including extended replacement cost coverage so you can rebuild your home up to current building codes in the event of a claim and get replacement cost value for your belongings. The company also offers a wide range of liability limits, from $1 million to $100 million.
Learn more about the company with our Chubb home insurance review.
Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.
Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.
Learn more about the company with our Farmers home insurance review.
If you’re looking for a local option, consider Michigan-based Frankenmuth. It sells policies through local independent agents and has been in business since 1868.
You may be able to save money on a Frankenmuth homeowners policy by bundling it with auto insurance, having protective devices in your home, or going a certain amount of time without filing a claim. The company has two homeowners coverage packages — one for standard homes and one with extra features for higher-value houses.
Cincinnati Insurance works with local independent agents to sell its policies. You can choose from several add-ons for your policy, including coverage for identity theft, personal cyberattacks and damage from water backups.
People with high-value homes can opt for a more comprehensive coverage package that may include things like guaranteed replacement cost coverage for their home. With this coverage, the company will pay whatever it takes to rebuild your house after a covered disaster, even if the amount is above your policy limit.
Check out our Cincinnati home insurance review to learn more.
The Hanover gives homeowners lots of choices. You can opt for an auto/home package, a policy designed for high-value homes or a standalone policy for a standard house. You can further customize your policy with a range of coverage options for things like guaranteed replacement cost coverage, which will pay as much as it takes to rebuild your home after a disaster.
The Hanover sells policies exclusively through local independent agents. This means online quotes aren’t available, but you can get personal service to help you choose the right coverage.
Learn more about the company with our Hanover home insurance review.
USAA sells homeowners insurance to veterans, active military members and their families. If that description fits you, you may want to consider a USAA policy. That’s because the company’s homeowners insurance has certain features that other insurers may charge extra for.
For example, USAA automatically covers your personal belongings on a “replacement cost” basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy brand-new replacements for your stuff.
Learn more about the company with our USAA home insurance review.
How much does homeowners insurance cost in Michigan?
The average annual cost of home insurance in Michigan is $1,345. That’s 26% less than the national average of $1,820.
In most U.S. states, including Michigan, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.
In Michigan, those with poor credit pay an average of $3,580 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 166% more than those with good credit.
Average cost of homeowners insurance in Michigan by city
What you pay for home insurance depends on where you live in Michigan. For example, the average cost of homeowners insurance in Detroit is $2,370 per year, while homeowners in Grand Rapids pay $1,215 per year, on average.
Average annual rate
Average monthly rate
The cheapest home insurance in Michigan
Here are the insurers we found with average annual rates below the Michigan average of $1,345.
NerdWallet star rating
Average annual rate
Auto Club Group (AAA)
What to know about Michigan homeowners insurance
Here are a few things to keep in mind when evaluating home insurance options in Michigan.
Michigan does experience flooding, and homeowners insurance typically won’t cover the resulting damage. If you live in a high-risk zone for flooding, such as along a lake or river, your mortgage lender will likely require you to purchase flood insurance. But you could be at risk no matter where you live, so flood insurance may still be worth considering.
Michigan sees an average of about 15 tornadoes per year. A standard homeowners insurance policy covers tornado damage, along with any additional living expenses you might have if you have to move out of your home after the storm.
Snow, ice and frigid temperatures are common in Michigan and could lead to problems like pipes bursting or tree branches falling on your home. Homeowners insurance will generally cover this type of damage, as long as it wasn’t due to your negligence.
Say you turn your thermostat down too low while you’re away from home for a few days. Your insurer might refuse to pay for damage from a burst pipe because you could have prevented it.
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. MBPIA is the state’s insurer of last resort, offering coverage to those who can’t get it in the private market.
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 a policy. Assistance is available by calling 877-999-6442.
Looking for more insurance in Michigan?
NerdWallet averaged rates for 40-year-old homeowners from various insurance companies in every ZIP code across the state. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. 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 made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for homeowners with poor credit.
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 and online experience. 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 full homeowners insurance rating methodology.
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare with 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.