Average Costs and Cheapest Homeowners Insurance Companies in Michigan

In order to determine how much homeowners insurance costs in Michigan, several factors come into play, and the cheapest option may vary depending on your situation. For instance, you may want to consider Auto-Owners if you have a poor credit score. If you have a newer home with a pool or an expensive house, Chubb may give you the best deals.

MoneyGeek analyzed thousands of quotes in the state to determine average rates and discover the most affordable options for you.

MoneyGeek used costs and service measures to break down the best homeowners insurance providers in Michigan if you want to balance cost and quality.

MoneyGeek compared thousands of quotes to discover the best deal in Michigan for various types of home insurance. Chubb has the lowest homeowners insurance premium in Michigan for $250,000 of basic dwelling coverage, with an average cost of $1,656 per year.

Chubb also offers the most affordable insurance in the state for other dwelling coverage limits, as shown below.

• Cheapest for $100,000: Chubb
• Cheapest for $250,000: Chubb
• Cheapest for $500,000: Chubb

Meanwhile, USAA is the most affordable option for a $500,000 baseline limit, but it is only available to those with a military background.

Toggle the table below to discover prices for the home insurance policy that meets your needs. Keep in mind that the amount of dwelling coverage you require is determined by the cost of replacing your house.

The cost of home insurance varies substantially based on the amount of dwelling coverage you get. The average cost of homeowners insurance in Michigan is $2,341 for a $250,000 coverage limit.

The dwelling coverage limit is the most important aspect in determining your home insurance premiums. The insurer will cover you for greater damage, but you will have to pay more as a result. To give you an example, a policy with $100,000 in coverage typically costs $1,416 per year, but a $3 million dwelling coverage level costs an average of $24,808 per year. On average, the annual cost difference is $23,392.

Insurance carriers estimate your homeowners insurance cost in Michigan based on your circumstances and area-related factors. They consider multiple elements to calculate your quote, including your home’s age, location, dwelling value, roof quality and proximity to a fire department, among other conditions.

You might want to change your dwelling coverage limits, deductibles and other limits to see how the average Michigan home insurance prices change based on your needs.

MoneyGeek compared thousands of insurance quotes to discover the best deals in Michigan for various types of home insurance.

On average, the most affordable insurance providers in the state for homeowners needing $2 million in dwelling coverage are the following:

• Chubb: $12,258 per year
• State Farm: $14,985 per year

At around $8,046 per year, USAA is the cheapest insurer in Michigan for a $2 million dwelling coverage. However, it's not widely available since only families with a military background can buy insurance plans from USAA.

For luxury properties, home insurance prices can vary significantly, so it's crucial to look into several different insurers and compare quotes if you want to get the best deals.

Using a sample house built in 2015, MoneyGeek gathered hundreds of quotes to identify the companies offering the most affordable homeowners insurance in Michigan for newer homes with $250,000 in dwelling coverage.

Using this sample 2015 home, we found that the cheapest options for $250,000 dwelling coverage in the state for newer homes are the following:

• Chubb: $1,357 per year
• State Farm: $1,902 per year

USAA costs around $1,172 per year, making it the cheapest option for new homes in Michigan. However, it’s only available to homeowners with a military affiliation.

In Michigan, the annual cost of insuring a home built in 2015 is about $638 less than that of a home constructed in 2000. Due to the differences in how we collected quotes from various ZIP codes, the numbers for these residences from 2000 are slightly different from the data in the first section.

On average, home insurance premium rates in Michigan for houses built in 2000 are $638 more expensive than premiums for homes built in 2015. That’s because older homes were built with materials that are less resistant to fire and weather. Many older houses have original wiring that can wear or break insulation, as well as old plumbing that may be corroded. Furthermore, the older a home is, the more typical wear and tear it has endured.

MoneyGeek compared thousands of offers to discover the cheapest home insurance company in Michigan for homes with pools. The following are the two cheapest insurance policies in Michigan for homeowners with a pool and $250,000 in basic dwelling coverage.

• Chubb: $1,656 per year
• State Farm: $2,537 per year

USAA is another good option if you have a military background. For those who are eligible, you only have to pay $1,759 annually, which is the second cheapest average premium in this category.

Owning a pool adds another item to insure, which may require raising or altering your coverage amounts, particularly given the pool's liability implications as an "attractive nuisance." That said, if your pool is destroyed by one of the risks covered in your policy, such as fire, hail or vandalism, your homeowners insurance will pay for the repairs.

Having a pool does not make a difference when it comes to the cost of home insurance in Michigan. That's because whether you have the added structure or not, the average insurance rate for a property with $250,000 dwelling coverage is still $2,422. It's crucial to keep in mind, though, that premiums might vary based on a variety of factors, such as your home coverage limits, location and more.

MoneyGeek compared thousands of quotes to identify the most affordable provider in Michigan for homeowners with bad credit. According to our research, for a $250,000 house, the two cheapest homeowners insurance companies in Michigan for homeowners with bad credit are:

• Auto-Owners: $1,844 per year
• Chubb: $3,210 per year

While USAA has the second-lowest average yearly premium in the state at $2,793, it is only offered to people who have a military affiliation.

Insurance firms point to studies showing that homeowners with poor credit are more likely to file claims, implying that these homeowners pose a greater risk and are potentially more expensive to insure. That’s why your home insurance premiums in Michigan will go up if you don’t have good credit scores.

Insurers in Michigan use several different factors to compute home insurance rates, including the homeowner’s credit record. Policyholders with poor credit scores usually have to pay more than those with good credit ratings.

Sometimes, the difference in yearly premium is massive when considering credit scores. That's the case with Michigan, where individuals with poor credit pay an average of $9,859 more per year for homeowners insurance than those with a good credit score.

The city you live in will also have an impact on the cost of homeowners insurance in Michigan. Our studies reveal Chubb to be the most cost-effective home insurance provider in Detroit, charging $685 less than the state average for $250,000 of base dwelling coverage.

You need to provide your basic personal details to your insurance carrier to get home insurance quotes in Michigan. In addition, you may need to inform the provider about the estimated value of your property, possessions and any additional features like solar panels. If you have a lot of visitors, you may want to obtain medical payment coverage as a precaution for injuries a guest may sustain in your home. Based on your responses, the home insurance company will prepare a tailored quote for you.

You can also use our Michigan home insurance calculator in case you want to get an anonymous home insurance quote. This tool compares the thousands of quotes we gathered from the state to provide a quick and accurate estimate.

MoneyGeek analyzed homeowners insurance premiums from six of the top insurance companies in Michigan that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Michigan. Quotes were gathered with an average home profile of 2,500 square feet, built in 2000, with an average dwelling coverage value of $250,000, liability coverage of $100,000 and personal property coverage of $100,000.