The Best Cheap Homeowners Insurance in Detroit, Michigan for 2024: Quotes and Reviews

There are several factors to look at when you’re choosing homeowners insurance in Detroit. Although it shouldn’t be the only thing on your list, a policy’s price is always something to consider. Considering that most providers offer similar core coverages, premium costs may help you narrow down your choices.

Among the top providers in Detroit, you can purchase cheap homeowners insurance for homes with dwelling coverage limits of $500,000 from:

• USAA: $2,634 per year (only available to former and current members of the military and their families)
• Chubb: $3,191 per year

More expensive homes typically require higher dwelling coverage limits to cover rebuilding costs. The amount of dwelling coverage you purchase has a substantial effect on your premium each year.

You can purchase cheap homeowners insurance in Detroit for homes with $2 million dwelling coverage limits from:

• USAA: $8,046 per year (only available to former and current members of the military and their families)
• Chubb: $12,258 per year

Homeowners insurance policies in Detroit for homes with initial baseline dwelling coverage limits of $500,000 have personal property coverage limits of $200,000. An increase in the dwelling coverage limit typically also results in higher personal property limits. For example, a policy for a home with a $2 million dwelling coverage limit has a personal property coverage threshold of $800,000. Regardless of dwelling coverage limits, the limit for liability coverage remains at $100,000.

You can look up information on statewide home insurance rates in Michigan if you live elsewhere in the state.

The average cost of homeowners insurance in Detroit is more expensive than the statewide and nationwide averages. Detroit homeowners pay an average of $4,113 per year or $343 per month. Compared to that, Michigan’s average rate is 43% lower at $2,341 per year. The difference from the national average is even more significant — the nationwide rate is 49% lower than Detroit’s, with an average annual premium of $2,103.

Several factors determine how much homeowners insurance in Detroit costs. Where you live is an important consideration — it helps insurance providers identify your risk level based on neighborhood crime rates and exposure to extreme weather conditions. Insurers also consider your credit score and how much coverage you purchase for dwelling and personal property insurance.

If you want to compare home insurance quotes within Michigan, you can use MoneyGeek’s home insurance calculator.

Having an affordable premium is one thing. Choosing a financially stable insurance provider that gives excellent service is another. Financial strength and customer experience become vital when you need to file a claim. The process is stressful enough without you having to worry about whether your claim will be processed quickly and objectively.

Using a unique internal rating system, MoneyGeek evaluated top providers in Detroit to determine which ones offer the best homeowners insurance. Those that came out on top are:

• Best Overall: USAA (available to current and former members of the military only)
• Runner Up: Auto-Owners Insurance Co.

MoneyGeek’s internal rating system includes customer experience, financial stability and affordability. These are the criteria used to evaluate the best homeowners insurance companies in Detroit.

In Detroit, homeowners insurance for a newly constructed home has lower premiums since these homes use materials that are easier to replace and more resistant to damage. With a house built in 2000, you’ll have to pay an average of $4,113 each year. A similar policy for a newly-built home costs 26% less, with an average annual premium of $3,030.

Providers that offer cheap homeowners insurance in Detroit for newly constructed homes with $500,000 dwelling coverage limits are:

• USAA: $1,755 per year (available only to current and former members of the military)
• Auto-Owners Insurance Co: $2,356 per year

The amount of coverage you purchase to protect your personal property affects how much homeowners insurance costs in Detroit. You’ll pay an average of $4,113 per year for a policy with a $100,000 personal property coverage limit. If you feel your belongings are worth more than that, you can choose to increase your limit, resulting in a higher premium. A policy with a $250,000 personal property coverage limit costs an average of $4,330 each year.

You can purchase the cheapest homeowners insurance policies in Detroit with personal property coverage limits of $500,000 from:

• USAA: $2,699 per year (available to current and former members of the military only)
• Auto-Owners Insurance Co: $3,367 per year

The amount you pay out of pocket before your policy begins to cover expenses is your deductible. A policy with a higher deductible requires you to pay more out of pocket but will result in a lower premium each year. For instance, a policy with a $1,000 deductible costs an average of $4,113 per year. If the deductible increases to $2,000, the annual premium decreases by about 11% — you’ll only have to pay an average of $3,665 each year.

You can purchase cheap homeowners insurance policies in Detroit with $2,000 deductibles from:

• USAA: $2,265 per year (available to current and former members of the military only)
• Chubb: $2,813 per year

In some states, credit scores aren’t considered when insurers calculate premiums. However, Michigan is not one of them. In Detroit, the cost of homeowners insurance is highly affected by your credit standing. A policy for a homeowner with a good credit score costs $4,113 per year on average. In contrast, having poor credit increases the premium by almost $17,000 — it costs $20,867 each year on average.

For homeowners with poor credit standing, the best homeowners insurance companies in Detroit to purchase policies from are:

• Auto-Owners Insurance Co: $3,198 per year
• USAA: $4,362 per year (available to current and former members of the military only)

For you to get the best possible deal for homeowners insurance in Detroit, it’s best to compare quotes from different providers. An easy way to gather rates is to get them online. For a smooth process, have the following information ready:

• The replacement cost of your home: This refers to the amount you’ll need to get your home rebuilt in case a covered peril renders it a total loss. It determines your dwelling coverage limit, so it’s best to have your home assessed by a professional to get an accurate evaluation.

• The value of your personal property: Most homeowners underestimate the worth of their belongings, resulting in not having enough coverage in their policy. Keeping an inventory of your possessions and their corresponding value is good practice.

• Your personal information: Insurers use personal details to determine how risky you are to insure. Things like your postal code, credit standing and whether you’ve filed claims in the past affect the premium. Insurers also consider the number of people who live in your home and if you have pets.

• Details about your home: These include information like how old your home is and how big it is. Knowing whether there are any safety devices like burglar alarms, security cameras or an entire security system may help you get discounts.

MoneyGeek used a baseline homeowner profile of a 2,500-square-foot home built in 2000 with dwelling coverage limits of $500,000, personal property coverage limits of $200,000 and liability coverage limits of $100,000. Comparisons were determined by gathering quotes for homes with higher limits for dwelling and personal property coverages, increased deductibles, newly constructed houses and homeowners with poor credit standing. MoneyGeek included six companies in this study, which were evaluated using various criteria. Affordability was determined using data provided in partnership with Quadrant and policies with varying coverage levels, while customer experience scores were based on the results of J.D. Power surveys.