Average Cost of Homeowners Insurance in Michigan (2024)

The average annual cost of homeowners insurance in Michigan in 2024 is $1,853. That's $570 less than the national average of $2,423.

Aside from the coverage rate you get on your home, credit rating significantly impacts premiums in Michigan, with the difference between the lowest and highest premiums reaching $7,678 on average. If your rates have recently increased, we've also analyzed the cheapest plans in the state, which may help you find budget-friendly alternatives.

In Michigan, the average annual premium for homeowners insurance is $1,853 for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K liability coverage. This rate is less than the national average of $2,423.

When considering how much coverage you need, remember it's essential to cover the cost of rebuilding your home and replacing personal items in case of a total loss.

For example, a policy with $100K in dwelling coverage costs $1,062 annually. If you opt for $500K in dwelling coverage, the premium increases to $3,086.

Premiums for homeowners insurance in Michigan can vary significantly among providers for similar coverages. For instance, while Auto-Owners Insurance might offer a policy at a rate well below the state average, The Hanover could quote a premium that exceeds it by over a thousand dollars.

Differences in underwriting can lead to a wide range of prices, highlighting the importance of comparing quotes from among the best homeowners insurance in Michigan.

Homeowners in Michigan with poor credit pay an average annual premium of $8,981 for homeowners insurance, $7,128 higher than the state average. On the other hand, those with excellent credit pay only an average of $1,303 annually. Credit scores directly influence insurance costs, reflecting the insurer's risk assessment based on financial reliability.

While improving your credit score may take time, it can lead to lower insurance rates in the future. In the meantime, comparing insurance providers can help you find more affordable coverage. It takes less than 15 minutes to see which insurer offers the best rates for homeowners in Michigan.

The type of roof on a home can influence the insurance premiums in Michigan. While not the most significant factor, it's notable that materials like tile, known for their durability, can offer some savings on insurance costs. On the other hand, roofs made from less resilient materials, such as shake-treated wood, may lead to higher premiums.

Similarly, the construction type of a home plays a role in determining insurance rates. Homes built with materials more resistant to common perils, like fire, often benefit from more favorable insurance rates. Superior construction materials can translate to lower insurance costs than standard options like wood frame construction.

Use the drop-downs in the table below to see how premiums change based on your home's materials.

Insuring a newly constructed home in Michigan typically costs less than an existing one, reflecting modern materials and stricter adherence to current building standards. Homeowners can expect an average annual premium of $1,001 for new homes, significantly lower than the $1,853 average for older homes. The table below illustrates the premium differences based on construction year and coverage levels.

In Michigan, homeowners who have not filed a claim in the past five years can expect an average annual premium of $1,853 for their insurance. However, for those with one claim within the last five years, the average jumps to $2,132, reflecting an increase of $279. Homeowners with two claims in the same period face an even steeper rise, $2,444 on average.

Home insurance premiums range from $1,389 to $3,532 for the cities we analyzed. Ann Arbor homeowners pay about $1,389 annually, while Grand Rapids homeowners have average annual premiums around $1,462. Detroit residents face much higher yearly rates at $3,532.

Location affects premiums due to varying risks like crime rates and weather patterns. Comparatively, city-based rate differences can vary, but other factors, such as credit rating and coverage amount, affect insurance rates.

Getting a good deal on homeowners insurance in Michigan is within reach if you know what steps to take. Here's how to find the best deal for you.

In Michigan, homeowners may find financial benefits by bundling their home insurance with auto insurance. Bundling could possibly reduce your combined premiums by 9%, opening up potential annual savings ranging from $531 to $1,472. Consider looking into the best home and auto bundles in Michigan for maximum multipolicy discounts.

Michigan homeowners can take advantage of various discounts to lower their insurance premiums. The following are their top choices:

• Loyalty: Get this by staying in the same insurer for a long time.
• Safety Devices: Install deadbolts and burglar alarms.
• Claims-Free: This is for homeowners without recent insurance claims.

To maximize savings, inquire about available discounts when obtaining a quote.

Whether you're looking to understand state regulations, find affordable coverage or calculate your potential costs in Michigan, these resources can provide valuable guidance.

• Michigan Department of Insurance and Financial Services: Official state resource for insurance regulations.
• Affordable Home Insurance in Michigan: Find cost-effective options for your home.
• Michigan Homeowners Insurance Calculator: Estimate your potential insurance costs.
• High-Risk Home Insurance Coverage: Understand insurance for homes in high-risk areas.
• Top Home Insurance Options in Michigan: Compare the best insurance providers.
• Personal Property Coverage Essentials: Guide to personal property insurance needs.
• Report Insurance Fraud: Online system for reporting insurance fraud.