Updated: November 21, 2024
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The average annual cost of homeowners insurance in Michigan in 2024 is $1,853. That's $570 less than the national average of $2,423.
Aside from the coverage rate you get on your home, credit rating significantly impacts premiums in Michigan, with the difference between the lowest and highest premiums reaching $7,678 on average. If your rates have recently increased, we've also analyzed the cheapest plans in the state, which may help you find budget-friendly alternatives.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — it’s free, no personal information required, no spam.
Rates updated:
Dec 23, 2024
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Table of Contents
To establish the average cost of homeowners insurance in Michigan, MoneyGeek used quotes from various providers for a profile that reflects the average homeowner.
These rates reflect the average cost of home insurance insurance in Michigan as of 2024.
In Michigan, the average annual premium for homeowners insurance is $1,853 for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K liability coverage. This rate is less than the national average of $2,423.
When considering how much coverage you need, remember it's essential to cover the cost of rebuilding your home and replacing personal items in case of a total loss.
For example, a policy with $100K in dwelling coverage costs $1,062 annually. If you opt for $500K in dwelling coverage, the premium increases to $3,086.
| $100K Dwelling / $50K Personal Property / $100K Liability | $1,062 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $1,853 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $3,086 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $4,266 |
Premiums for homeowners insurance in Michigan can vary significantly among providers for similar coverages. For instance, while Auto-Owners Insurance might offer a policy at a rate well below the state average, The Hanover could quote a premium that exceeds it by over a thousand dollars.
Differences in underwriting can lead to a wide range of prices, highlighting the importance of comparing quotes from among the best homeowners insurance in Michigan.
| Auto-Owners Insurance | $300 |
| ASI | $1,227 |
| State Farm | $1,532 |
| Farmers | $1,741 |
| Chubb | $1,776 |
| USAA | $1,856 |
| Encompass | $3,050 |
| The Hanover | $3,339 |
Homeowners in Michigan with poor credit pay an average annual premium of $8,981 for homeowners insurance, $7,128 higher than the state average. On the other hand, those with excellent credit pay only an average of $1,303 annually. Credit scores directly influence insurance costs, reflecting the insurer's risk assessment based on financial reliability.
While improving your credit score may take time, it can lead to lower insurance rates in the future. In the meantime, comparing insurance providers can help you find more affordable coverage. It takes less than 15 minutes to see which insurer offers the best rates for homeowners in Michigan.
| Poor | $8,981 |
| Below Fair | $3,996 |
| Fair | $2,660 |
| Good | $1,853 |
| Excellent | $1,303 |
The type of roof on a home can influence the insurance premiums in Michigan. While not the most significant factor, it's notable that materials like tile, known for their durability, can offer some savings on insurance costs. On the other hand, roofs made from less resilient materials, such as shake-treated wood, may lead to higher premiums.
Similarly, the construction type of a home plays a role in determining insurance rates. Homes built with materials more resistant to common perils, like fire, often benefit from more favorable insurance rates. Superior construction materials can translate to lower insurance costs than standard options like wood frame construction.
Use the drop-downs in the table below to see how premiums change based on your home's materials.
| $100K Dwelling / $50K Personal Property / $100K Liability | $1,062 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $1,853 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $3,086 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $4,266 |
| $1M Dwelling / $500K Personal Property / $1M Liability | $5,444 |
Insuring a newly constructed home in Michigan typically costs less than an existing one, reflecting modern materials and stricter adherence to current building standards. Homeowners can expect an average annual premium of $1,001 for new homes, significantly lower than the $1,853 average for older homes. The table below illustrates the premium differences based on construction year and coverage levels.
| Existing Construction (2000) | $1,853 |
| New Construction (2023) | $1,001 |
In Michigan, homeowners who have not filed a claim in the past five years can expect an average annual premium of $1,853 for their insurance. However, for those with one claim within the last five years, the average jumps to $2,132, reflecting an increase of $279. Homeowners with two claims in the same period face an even steeper rise, $2,444 on average.
| Claim free for 5+ years | $1,853 |
| 1 claim in past 5 years | $2,132 |
| 2 claims in past 5 years | $2,444 |
In Michigan, flooding and tornadoes are the top natural disaster risks for homeowners. Often, standard home insurance policies don't cover flood damage, but they usually do cover wind damage. You might need separate flood insurance to protect your home from floods.
Home insurance premiums range from $1,389 to $3,532 for the cities we analyzed. Ann Arbor homeowners pay about $1,389 annually, while Grand Rapids homeowners have average annual premiums around $1,462. Detroit residents face much higher yearly rates at $3,532.
Location affects premiums due to varying risks like crime rates and weather patterns. Comparatively, city-based rate differences can vary, but other factors, such as credit rating and coverage amount, affect insurance rates.
| Ann Arbor | $1,389 |
| Detroit | $3,532 |
| Grand Rapids | $1,462 |
| Lansing | $1,414 |
| Sterling Heights | $1,648 |
| Warren | $2,185 |
Getting a good deal on homeowners insurance in Michigan is within reach if you know what steps to take. Here's how to find the best deal for you.
Analyze how much coverage you need for your home and personal belongings.
Ask about bundles or other ways to save money.
Look into bundling home and auto insurance for potential savings.
Good companies have high customer service and claims ratings. You should look for companies having these indicators.
In Michigan, homeowners may find financial benefits by bundling their home insurance with auto insurance. Bundling could possibly reduce your combined premiums by 9%, opening up potential annual savings ranging from $531 to $1,472. Consider looking into the best home and auto bundles in Michigan for maximum multipolicy discounts.
Michigan homeowners can take advantage of various discounts to lower their insurance premiums. The following are their top choices:
To maximize savings, inquire about available discounts when obtaining a quote.
Auto-Owners Insurance offers the lowest average premium at $300. For more options, explore cheap national providers.
Standard policies don't cover flooding. You'll need separate flood insurance. Learn more about coverage for natural disasters.
Credit rating significantly impacts insurance costs, with a difference of $7,678 between excellent and poor ratings.
Bundling can save you up to $1,472. Discover the best options for home and auto bundles in Michigan.
Whether you're looking to understand state regulations, find affordable coverage or calculate your potential costs in Michigan, these resources can provide valuable guidance.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
