Updated: October 1, 2026
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Chubb has the most affordable homeowners insurance in Michigan. It averages $1,808 annually, $387 below Michigan’s $2,195 average.
Farmers is cheapest in seven of the nine Michigan cities analyzed and for homeowners with excellent, fair or below-fair credit, with rates starting at $459 annually for excellent credit.
Compare quotes from multiple insurers, ask about discounts and bundle policies to find savings on your home insurance.
Chubb is the cheapest Michigan home insurer at $1,808 annually. Its average premium is $387 below the state average and $148 below State Farm’s rate. USAA follows at $1,970, with Farmers at $2,063.
The four cheapest insurers in the state are separated by $255 from lowest to highest. Each costs less than Michigan’s $2,195 average, with differences ranging from $132 for Farmers to $387 for Chubb. Your quote will depend on your home and the coverage you select.
Chubb | 4.5 | $1,808 | 18% |
State Farm | 4.45 | $1,956 | 11% |
USAA | 4.44 | $1,970 | 10% |
Farmers | 4.41 | $2,063 | 6% |
*These rates are based on a house built in 2000 with $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and a $1,000 deductible. We assumed good credit and no claims in the past five years.
The affordability scores measure price, rather than claims service or coverage quality. MoneyGeek’s comparison of Michigan insurers on service and coverage addresses those factors separately. Review exclusions and how a policy pays for damaged property before choosing an insurer.
Chubb has the lowest rate among the insurers in our comparison for $250,000 in dwelling coverage at $1,808 annually. State Farm follows at $1,956, a $148 difference. These premiums also include $125,000 in personal property coverage and $200,000 in liability coverage.
Chubb | $151 | $1,808 |
State Farm | $163 | $1,956 |
USAA | $164 | $1,970 |
Farmers | $172 | $2,063 |
Choose dwelling coverage based on rebuilding costs, rather than your home’s sale price. A lower premium doesn’t compensate for a limit that falls short after a covered total loss. Confirm the amount needed to rebuild before comparing prices.
Farmers has the lowest rates among the included insurers in seven of the nine Michigan cities we analyzed. Chubb is cheapest in Warren at $1,836 annually, and USAA has Detroit’s lowest rate at $2,266. The cheapest premiums range from $905 in Ann Arbor to $2,266 in Detroit.
Ahmeek | Farmers | $78 | $932 |
Ann Arbor | Farmers | $75 | $905 |
Detroit | USAA | $189 | $2,266 |
Grand Rapids | Farmers | $86 | $1,029 |
Lansing | Farmers | $79 | $944 |
Pontiac | Farmers | $151 | $1,813 |
Sterling Heights | Farmers | $106 | $1,271 |
Stockbridge | Farmers | $99 | $1,184 |
Warren | Chubb | $153 | $1,836 |
Farmers’ advantage over the next-cheapest insurer narrows to $44 annually in Pontiac, where State Farm averages $1,857. Detroit homeowners who don’t meet USAA’s eligibility requirements should include Chubb in their comparison since its $2,532 annual premium is the next-lowest rate in the city.
Your personal profile affects your home insurance rates as much as your property details. Credit score and claims history create the largest rate differences among Michigan homeowners.
Farmers has Michigan’s lowest home insurance rates for homeowners with excellent, fair or below-fair credit. Chubb is cheapest for good credit at $1,808 annually. USAA has the lowest rate for poor credit at $2,741, though homeowners must meet its membership eligibility requirements.
Excellent | Farmers | $38 | $459 |
Good | Chubb | $151 | $1,808 |
Fair | Farmers | $91 | $1,092 |
Below Fair | Farmers | $167 | $2,005 |
Poor | USAA | $228 | $2,741 |
The cheapest premium doesn’t increase at every step down the credit categories: Farmers’ $1,092 rate for fair credit is $716 below Chubb’s good-credit rate. For poor credit, State Farm is the next-cheapest option at $3,102 annually, $361 more than USAA.
Chubb has Michigan’s lowest home insurance rates for homeowners with no claims, one claim and two claims. Its annual premium averages $1,808 for homeowners who have been claim-free for at least 5 years, $2,095 after one claim and $2,337 after two claims within that period.
Claim-free for 5+ years | Chubb | $151 | $1,808 |
1 claim in the past 5 years | Chubb | $175 | $2,095 |
2 claims in the past 5 years | Chubb | $195 | $2,337 |
Start with insurers that have the lowest rates for your location and homeowner profile. Chubb is cheapest for good credit and all three claims histories analyzed. Farmers leads in seven of the nine cities, and USAA has the lowest rate for poor credit, for those who qualify.
Chubb’s $1,808 annual premium uses $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability coverage. Estimate how much home insurance you need before requesting quotes. Your dwelling limit should reflect rebuilding costs rather than your home’s sale price.
Compare quotes from at least three insurers for identical coverage levels. Michigan home insurance rates vary by hundreds of dollars annually between companies, even for the same home and profile. Gather quotes online, through agents and directly from insurers to find your best rate.
Save 15% to 25% by bundling your home insurance with auto coverage. Most Michigan insurers offer multi-policy discounts that reduce both premiums.
Ask agents about every discount you qualify for, as insurers won't apply them automatically. Common Michigan discounts include protective device discounts for monitored alarm systems (5% to 20% savings), claims-free discounts and new home discounts. Wind and hail-resistant roofing can lower your premium.
Michigan allows credit-based insurance scoring, so improving your credit can lower your rates. Pay bills on time and reduce credit card balances to see premium reductions over time.
Chubb is the cheapest home insurance company overall in Michigan at $1,808 annually, 18% below the state average. The lowest rate for you depends on your location, coverage needs and homeowner profile. Compare quotes from at least three insurers with matching limits and deductibles to find the best deal for your situation.
Older homes cost more to insure due to outdated electrical, plumbing and roofing systems. Lower your premium by updating these systems and providing documentation to your insurer. Replacing knob-and-tube wiring, updating your roof and installing a modern HVAC system can reduce your rates. Some insurers offer renovation discounts when you complete major updates.
Standard homeowners policies usually cover damage from ice dams, suddenly burst pipes and roof collapse caused by the weight of snow or ice. Coverage depends on your policy’s terms and exclusions. Before Michigan’s winter season, check those provisions and take precautions such as keeping gutters clear and your home heated.
Water and sewer backup coverage often requires an endorsement added to your homeowners policy. Check its limit and deductible, especially if you have a finished basement. Backup coverage usually excludes flood damage and the cost to repair or replace a broken sump pump.
Ask a licensed agent about the Michigan Basic Property Insurance Association, which provides an insurance option for eligible homeowners who can’t obtain coverage in the regular market. Any licensed agent can help with an application. Compare the policy’s coverage and limits before buying.
MoneyGeek analyzed Michigan rates to identify which companies offer the lowest premiums for homeowners across the state.
We gathered quotes from major insurers through Quadrant Information Services for a standard Michigan home profile. The data shows which companies price competitively for typical homeowners.
Sample Home Profile
We gathered quotes using these specifications to represent a common Michigan homeowner:
This profile reflects a moderately valued home with a clean claims history. Newer homes (built after 1990) get better rates than older properties with outdated electrical and plumbing systems. The $1,000 deductible balances affordable premiums with reasonable out-of-pocket costs when filing claims.
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.
