Home insurance in Michigan costs about $183 monthly or $2,199 annually on average. Homeowners in the state pay $36 less per month, or $436 less annually, than the national average, making it the 24th most affordable state for home insurance.
Average Home Insurance Cost in Michigan
Updated: June 2, 2025
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Rates updated:
Jun 06, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in Michigan can range from $1,996 to $35,403.
Michigan's home insurance premiums are the 24th most affordable in the country, at 16% below the national average.
To find the best home insurance in Michigan, determine your coverage needs, research costs and providers and get multiple quotes.
How Much Is Home Insurance in Michigan?
| Michigan Average | $183 | $2,199 | -17% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Average Home Insurance Cost by City
Home insurance costs vary depending on your city. Property age, weather-related factors and home valuations can drastically affect home insurance costs. For example, the average monthly home insurance cost in Ann Arbor is around $119; in Detroit, it’s much higher at $315.
| Ann Arbor | $119 | $1,425 |
| Detroit | $315 | $3,774 |
| Grand Rapids | $125 | $1,500 |
| Lansing | $121 | $1,451 |
| Sterling Heights | $140 | $1,684 |
| Warren | $189 | $2,273 |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Michigan?
Home insurance is expensive in Michigan mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Higher claims frequency or severity in a region signals increased risk to insurers, leading to raised premiums to cover potential payouts.
High Weather Risks
Areas prone to severe weather, such as hurricanes or floods, often face higher insurance costs due to the increased likelihood of property damage.
Rising Material and Labor Costs
As the cost of building materials and labor rises, so does the cost to repair or rebuild homes, which can result in higher insurance premiums.
State Insurance Laws
State-specific insurance regulations can affect the cost of coverage. Mandates for higher coverage limits or additional benefits can drive up prices.
What Affects Michigan Home Insurance Costs?
For many home insurance companies, pricing is mostly influenced by these factors:
- Location
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
We'll show how each factor impacts rates.
How Much Does Location Affect Home Insurance Costs?
Location is the biggest factor affecting home insurance rates in Michigan, with rates varying by up to 95%. Weather risks, home value and population density in your area play a major role in determining costs.
| Lowest | Michigan State Remnant Tier Aggregate | $124 | $1,484 |
| Highest | Detroit | $330 | $3,956 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choices are the second most influential factor in Michigan home insurance rates, averaging from $1,127 to $7,038 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $94 | $1,127 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $586 | $7,038 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the third most influential factor in Michigan homeowners insurance rates, averaging from $89 to $194 per month. These factors affect replacement costs and the risk of damage or theft, leading to rate differences.
| Lowest | New | Superior | Tile | $89 | $1,066 |
| Highest | Old | Frame | Shake-Treated | $194 | $2,327 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the fourth most influential factor in Michigan home insurance rates, with prices ranging from 84% below to 72% above the state average.
| Lowest | Auto-Owners Insurance | $29 | $351 |
| Highest | Encompass | $310 | $3,716 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 140%, with annual average rates ranging from $1,552 to $10,527.
| Lowest | Excellent | $129 | $1,552 |
| Highest | Poor | $877 | $10,527 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims will increase your perceived risk for insurers, which can increase premiums, although in Michigan, claims history has a smaller impact on cost than other factors. We found that depending on your claims history, rates can be affected by up to 14% or $690 annually.
| Lowest | Claim free for 5+ years | $181 | $2,167 |
| Highest | 2 claims in past 5 years | $238 | $2,857 |
Tips to Save on Michigan Home Insurance
With high home insurance costs in Michigan, it's crucial to find ways to save on premiums, whether you're buying a new home or cutting expenses on your current one. Below are tips to help you secure the best and cheapest home insurance in Michigan tailored to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own. Learn more about determining how much home insurance you need. Consider different standard coverage options.
- 2
Research Costs and Discounts Beforehand
To determine if you’re getting a good deal, understand the average costs for you and your home. Also, ask agents about all available home insurance discounts, as some insurers apply certain reductions only if requested. Knowing the average costs for you can help you assess offers better.
- 3
Compare Multiple Providers Through Different Avenues
To find the best coverage, use online comparison sites, brokers, provider websites, and agents.
- 4
Consider Bundling Policies
Bundling policies can lead to significant savings. For example, combining home and auto insurance can save up to xx% on home insurance and $xx annually on both policies.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums drastically. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
Some states provide options to help get affordable coverage if you're denied traditional home insurance. For instance, Michigan offers the TFPA policy to insure you if traditional insurers deny you coverage. While TFPA plans don’t offer the same coverage amount as traditional policies, they meet mortgage requirements.
Michigan Home Insurance Calculator: Bottom Line
Home insurance costs vary with your location and the coverage you choose. Find affordable rates easily: check your needs, compare average costs, and use our estimate tool for the best deal.
Homeowners Calculator Insurance Michigan: FAQ
To help estimate your expenses, MoneyGeek answers common questions you may have about home insurance in this state.
How much does homeowners insurance cost in Michigan?
Michigan's average monthly home insurance cost is $183 for a dwelling coverage of $250K. However, your rate will depend on factors like your credit score, liability and property coverage limits and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level and provider. Your credit score and home details also play a crucial role.
How We Determined Our Michigan Home Insurance Estimates
When determining the average cost of home insurance in Michigan, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.