Michigan's average home insurance premium costs $183 monthly or $2,195 annually. That's $106 less per month than the national average, saving residents $1,272 yearly. Michigan ranks as the 29th most expensive state for home insurance coverage.
Average Home Insurance Cost in Michigan
Updated: January 29, 2026
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Key Takeaways: Michigan Home Insurance Rates
Michigan ranks as the 29th most affordable state for homeowners insurance, with average premiums of $183 per month or $2,195 per year.
Determine your coverage needs, gather multiple quotes and research providers to find the best home insurance in Michigan at competitive rates.
MoneyGeek's free home insurance calculator helps you estimate costs in seconds without providing any personal information.
How Much Is Home Insurance in Michigan?
| Michigan | $2,195 | $3,467 | -37% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Jan 29, 2026
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What Affects Average Michigan Home Insurance Costs?
Michigan home insurance costs vary based on multiple factors. Your location, coverage limits, home's construction materials, insurance company, credit score and claims history all impact your premium. These elements work together to determine what you'll pay for coverage.
Average Michigan Homeowners Insurance Pricing by Coverage Level
Michigan homeowners insurance costs range from $1,243 to $6,560 annually based on coverage choices. Higher coverage limits and lower deductibles raise your costs. Lower coverage amounts and higher deductibles cut what you pay each year.
| $100K Dwelling / $50K Personal Property / $100K Liability | $104 | $1,243 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $183 | $2,195 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $311 | $3,733 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $430 | $5,158 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $547 | $6,560 |
Average Michigan Home Insurance Cost by City
Michigan's urban centers cost more than smaller communities. Detroit leads at $304 monthly followed by Warren at $205 monthly. The most affordable coverage is in smaller cities like Ahmeek ($134 monthly) and Ann Arbor ($131 monthly).
| Ahmeek | $134 | $1,607 |
| Ann Arbor | $131 | $1,572 |
| Detroit | $304 | $3,643 |
| Grand Rapids | $141 | $1,690 |
| Lansing | $140 | $1,675 |
| Pontiac | $176 | $2,109 |
| Sterling Heights | $164 | $1,972 |
| Stockbridge | $146 | $1,747 |
| Warren | $205 | $2,456 |
Average Cost of Michigan Home Insurance by Company
Choosing the right insurer in Michigan can save you over $3,000 annually. Auto-Owners offers the lowest rates at $33 monthly ($400 annually), while The Hanover charges $300 monthly ($3,595 annually).
| Auto-Owners Insurance | $33 | $400 |
| Chubb | $151 | $1,808 |
| State Farm | $163 | $1,956 |
| USAA | $164 | $1,970 |
| Farmers | $172 | $2,063 |
| Progressive | $187 | $2,246 |
| Allstate | $294 | $3,523 |
| The Hanover | $300 | $3,595 |
Michigan Homeowners Insurance Costs by House Age
Home age affects insurance costs in Michigan. Newer properties built in 2020 average $1,366 annually, while older homes from 1980 cost $2,223 per year or about $860 more to insure than newer construction.
| Newer | $114 | $1,366 |
| Middle Age | $183 | $2,195 |
| Older | $185 | $2,223 |
Average Michigan Home Insurance Cost by Credit Score
Improving your credit score from below-fair to good saves Michigan homeowners $774 monthly or $9,287 annually. Excellent credit scores command the lowest rates at $152 monthly, followed by good credit at $183 monthly. Even modest credit improvements yield substantial premium reductions in Michigan's insurance market.
| Excellent | $152 | $1,827 |
| Good | $183 | $2,195 |
| Below Fair | $957 | $11,482 |
| Poor | $2,393 | $28,710 |
Why Is Home Insurance So Affordable in Michigan?
Michigan home insurance costs 37% less than the national average at $2,195 annually compared to $3,467 nationwide. Several factors contribute to Michigan's below-average premiums despite the state's weather challenges.
Competitive Insurance Market
Michigan's insurance market includes over 1,563 domestic and licensed foreign insurers, according to the National Association of Insurance Commissioners, creating strong competition that benefits consumers. This competitive environment drives insurers to offer lower rates to attract policyholders. Regional carriers compete alongside national brands, preventing any single insurer from dominating pricing. Market competition remains a key factor in keeping Michigan premiums below the national average.
Lower Catastrophic Disaster Risk
Michigan has fewer high-cost natural disasters than many U.S. states. Between 1980 and 2024, it recorded 60 climate disaster events, compared with 190 in Texas and 94 in Florida. Winter storms and occasional flooding occur, but damage is usually more limited than the widespread losses tied to hurricanes, wildfires or earthquakes. With fewer large catastrophe claims, insurers carry lower overall risk, which helps keep premiums more moderate.
Moderate Property Values
Michigan has a median home value of $217,600, according to the U.S. Census Bureau. Lower property values mean lower dwelling coverage limits and reduced replacement costs when claims occur. Insurers price policies based on rebuilding costs, so Michigan's relatively affordable housing stock results in lower premiums compared to high-cost states like California, New York or Hawaii.
Tips to Save on Michigan Home Insurance
Michigan home insurance costs continue rising, making it important to find the cheapest home insurance in Michigan options. These proven strategies help both new buyers and current homeowners reduce their premiums.
- 1Calculate Coverage Needs
Most Michigan homeowners guess wrong on coverage and waste money or end up underinsured. Replacement cost isn't market value. Find out what rebuilding costs at today's construction prices, not your home's sale price. List all your belongings for accurate personal property coverage.
Grand Rapids and Detroit homeowners need extra coverage for water backup damage. Schedule high-value items like jewelry or electronics separately because standard policies cap these at $1,500 to $2,500.
- 2Research Rates and Discounts
Use MoneyGeek's Michigan home insurance calculator to see what you should pay in Detroit or Ann Arbor. Ask insurers about discounts when you get quotes. Security systems, newer construction, clean claims records and smoke detectors all qualify for breaks. Combine several and you'll slash costs.
- 3Compare Multiple Providers
Get quotes from at least three insurers and check both price and service quality. Review customer satisfaction ratings, claims processing speed and financial strength ratings. A lower premium from a company with poor claims service may cost more when you actually file a claim.
- 4Bundle Home and Auto
Bundle home and auto insurance with one provider to save 10% to 25% on both policies in Michigan. Warren and Lansing residents save more by comparing bundled rates across multiple insurers. Some companies give competitive bundle discounts for Michigan homeowners.
- 5Lower Your Risk Profile
Install smoke detectors, security systems or storm shutters. Five years without filing a claim saves you $349 to $643 yearly. Raise your credit score from below fair to good: premiums drop 81%.
MONEYGEEK EXPERT TIP
Increase your deductible from $1,000 to $2,500 or $5,000 to lower your annual premium by 10 to 25%. Michigan homeowners who can cover higher out-of-pocket costs in emergencies save money on every premium payment. Check if the premium cut justifies the increased deductible risk. If you go five years without filing a claim, you'll save more than the deductible difference.
Calculate Michigan Homeowners Insurance Costs: FAQ
Michigan homeowners insurance costs depend on your property and location. These FAQs answer common questions about home insurance pricing and what raises your rates in Michigan.
How much will my premium increase after filing a claim in Michigan?
Filing a claim in Michigan increases your premium by $349 for one claim and $643 for two claims compared to claim-free customers. Michigan homeowners without claims pay $2,195 annually on average. One claim raises your rate to $2,544 per year. Two claims bump your annual premium to $2,838. Claims stay on your record for five years, so you'll pay these higher rates for that entire stretch.
How much can I save by choosing a different insurer in Michigan?
Shopping around for home insurance in Michigan can save you thousands annually. The most affordable option, Auto-Owners, charges just $400 per year, while The Hanover's rates reach $3,595 annually for comparable coverage.
Even mid-tier insurers show notable differences. USAA costs $1,970 yearly compared to Farmers at $2,063, creating a $93 annual gap. Compare quotes from at least three insurers to find the best rate for your situation.
Does home insurance in Michigan cover ice dam damage?
Most Michigan homeowners policies cover ice dam damage to your home's interior, including water damage to walls, ceilings and floors. However, the ice dam removal itself isn't covered, and you'll need to pay your deductible. Some insurers exclude coverage if you didn't maintain proper attic insulation or ventilation, so document your home maintenance to avoid claim denials.
How does filing a water damage claim affect my Michigan home insurance rates?
Water damage claims spike your Michigan premium by $349 to $643 yearly based on severity and your claims history. The increase sticks around five years. One $5,000 water damage claim costs you $1,745 to $3,215 extra over time. For minor water damage under $2,000, pay out-of-pocket. It's cheaper than filing once you add deductibles and rate hikes.
How can I lower my home insurance costs in Michigan?
You can cut your Michigan home insurance costs through lots of proven methods. Compare rates from multiple insurers since premiums vary by thousands of dollars for the same coverage. A clean claims history for five or more years saves you $349 annually compared to one claim and $643 compared to two claims.
Bump your deductible from $500 to $1,000 and you'll save $159 per year. You'll pay more out of pocket when you file a claim, but the yearly savings add up. Ask insurers about discounts for bundling policies, installing security systems or owning a newer home. Even small discounts bring down your annual costs.
How We Analyzed Michigan Home Insurance Rates
MoneyGeek calculated Michigan home insurance estimates using real rate data from multiple insurers. We built a standard homeowner profile for fair comparisons across companies and risk factors.
Our analysis uses: $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and a $1,000 deductible. The model assumes a home built in 2000 with frame construction and a composition roof. No insurance claims filed in the past five years.
These specs match typical Michigan homeowners and common property values statewide. The $250,000 dwelling amount hits median home values in many Michigan markets. Homes built in 2000 are the biggest share of existing properties.
We tested how individual factors affect rates by changing one element while keeping everything else the same. For example, when studying how home age impacts premiums, we compared identical policies for homes built in 1980, 2000 and 2020.
Your actual insurance rates will be different based on your specific home features, location, coverage choices, claims history, credit score and the insurer you select. The rate differences shown here demonstrate how much each factor can influence your premium costs.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- National Association of Insurance Commissioners (NAIC). "State Insurance Regulation: Key Facts and Market Trends Michigan (2022)." Accessed January 29, 2026.
- United States Census Bureau. "Quick Facts Michigan." Accessed January 29, 2026.