besthome insuranceDetroitThe Best Cheap Homeowners Insurance in Detroit, Michigan for 2024: Quotes and Reviews
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besthome insuranceDetroitThe Cheapest and Best Homeowners Insurance in Detroit
Best homeowners insurance in Detroit - Auto-Owners
The Cheapest Home Insurance Companies in Detroit
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
The Cheapest Home Insurance in Detroit, Ranked
Dwelling Coverage:
$250,000
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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 for 2021
Detroit$2,341
Michigan$2,341
U.S.$2,103
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.
Calculate the Cost of Home Insurance in Detroit
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.
Home Insurance Calculator
State
Michigan
Dwelling Coverage
$250,000
Deductible
$500
Liability
$300,000
Personal Property
$50,000
Credit Score
Excellent
low end
on average
high end
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Detroit
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.
1
USAA
Score:100
If you’re in active service, USAA’s policies cover costs from loss or damage to uniforms without affecting your deductible. They prioritize safety, so if you have safety devices installed in your home, such as deadbolts or burglar alarms, it makes you eligible for discounts. The same is true if you can remain claim-free.
More About USAA
USAA consistently ranks high in most states. In Detroit, it earns first place with perfect scores in all categories. It’s only available, however, to current and former military members and their families.
2
Auto-Owners
Score:95
One coverage offered by Auto-Owners Insurance Co that isn’t available from many other providers is equipment breakdown protection. It protects you against costs incurred from mechanical or electrical system failures in your home. You can also add guaranteed home replacement to your policy to ensure you’re completely covered regardless of your limits.
More About Auto-Owners
Second place goes to Auto-Owners Insurance Co. It earned high scores for most categories, even having a perfect mark in financial strength. Fully owning your home makes you eligible for mortgage-free discounts.
3
Chubb
Score:93
4
State Farm
Score:85
5
Farmers
Score:80
6
Allstate
Score:73
Cheapest Home Insurance Companies in Detroit for Newly Constructed Homes
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 Cheapest Home Insurance in Detroit for New Homes, Ranked
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Cheapest Home Insurance Companies in Detroit if You Have a Lot of Personal Property
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
Cheap Companies in Detroit for Extra Personal Property Coverage
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Cheapest Home Insurance Companies in Detroit for High Deductibles
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
The Cheapest Companies in Detroit for High Deductibles, Ranked
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Cheapest Home Insurance Companies in Detroit if You Have Poor Credit
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)
The Cheapest Companies in Detroit for Poor Credit, Ranked
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Getting Online Homeowners Insurance Quotes in Detroit
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.
Compare Home Insurance Rates
Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.
Homeowners Insurance in Detroit Analysis: Methodology
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.
About Mark Fitzpatrick
sources
- Coverhound. "5 Ways a Security System Can Cut Home Insurance Costs." Accessed July 1, 2021.
- Safewise. "Can a Home Security System Decrease My Homeowners Insurance?." Accessed July 1, 2021.