Homeowners Insurance in Michigan
Michigan's weather can be a wild ride, from bone-chilling cold to sweltering heat, with tornadoes and floods mixed in between. For homeowners in the Great Lakes State, a solid home insurance policy isn't just a nice-to-have — it's your financial shield against Mother Nature's mood swings.
Hippo has been offering homeowners insurance in Michigan since 2021 — from Detroit to Petoskey and everywhere in between. For more information on what you can expect from home insurance policies in Michigan, check out our breakdown below.
What is the average homeowners insurance cost in Michigan?
The average cost of home insurance in Michigan is $2,095 a year — or the cost of a Pistons season ticket with enough left over for plenty of pizza, Coney dogs, and beer.
This yearly premium is 17% below the national average of $2,522, which makes sense given that Michigan is known to be a pretty affordable state. (And if you live in Grand Rapids, you’re actually in one of the most affordable cities in the nation.)
This table shows how Michigan homeowners insurance rates have changed over the years:
Year | Average annual premium |
|---|---|
2024 | $2,095 |
2023 | $1,840 |
2022 | $1,547 |
2021 | $993 |
2020 | $1,002 |
The average homeowners insurance cost in Michigan is $2,095 a year — or the cost of a Pistons season ticket with enough left over for plenty of pizza, Coney dogs and beer.
What factors influence my home insurance rate?
Several factors can influence how much homeowners insurance is in Michigan:
- Your location. Living in a densely populated city like Detroit might increase your premiums, as well as in an area with harsh winters. (Did you know some parts of Michigan get up to 150 inches of snow annually?)
- Home size. Larger homes typically cost more to insure because there's more to rebuild or replace if you file a claim.
- Home age and construction. A charming historic cottage in Traverse City might cost more to insure than a modern, weather-resistant home. Older homes with less durable materials often have higher premiums than newer constructions built to withstand Michigan's weather whims.
- Claims history. If you’ve filed insurance claims in the past few years, you will likely pay higher premiums than if you were claims-free.
- Credit score. In Michigan, insurers can use your credit score to determine rates.
- Coverage amount and deductible. Choosing a policy with higher coverage limits or a lower deductible can cause premiums to rise.
- Special features. Things like swimming pools and diving boards can increase your liability risk, which can, in turn, affect your rate.
🤔 Did you know?
Michigan law states that an insurance company can't use credit scores to deny, cancel, or not renew policies. However, they can use them to determine premiums and payment options. This means that while your credit score won't prevent you from getting coverage, it could impact how much you pay for home insurance in Michigan.
Common insurance discounts in Michigan
No matter how much you pay for insurance, there are several discounts you can use to lower premiums:
- Multi-policy discount. Bundling your home and auto insurance can save you up to 20% on Michigan home insurance.
- New home discount. If you’re buying a brand new home, you could save up to 40% on your premium.
- Safety features discount. Installing smoke detectors, security systems, or fire extinguishers can help you save up to 5% on premiums.
- Storm-resistant features discount. Homes in Michigan with impact-resistant roofs or other storm-resistant features may qualify for discounts.
- Claims-free discount. If you haven't filed a claim in three to five years, you could save up to 20% on home insurance.
- Retiree discount. Seniors or retirees may be eligible for cheaper home insurance in Michigan.
- HOA discount. Some insurance companies (like Hippo) provide an HOA discount that could help lower the cost of Michigan condo insurance.
- Loyalty discount. Staying with the same insurer for several years can earn you a discount between 5% and 10%.
Tips for lowering home insurance rates
You don't need to live in Michigan's Magic Capital to work some magic on your home insurance premium. In addition to discounts, here are some practical tips to lower your rates:
- Raise your deductible. Increasing your deductible from $500 to $1,000 or from $1,000 to $2,000 could lower your premiums. A good rule of thumb is to choose the highest amount you can comfortably afford to pay if you need to file a claim.
- Improve your credit score. In Michigan, insurers can use your credit score to set rates. This means you could lower your home insurance costs if you continue making payments on time and use only a small percentage of your credit card limits to keep your utilization low.
- Mitigate risks. Home maintenance tasks like updating old systems, installing safety features and disaster-proofing your home can lower your risk profile and, thus, your premiums.
- Shop around annually. Home insurance companies always add new discounts, so it’s worth shopping around to find the best combination of coverage and savings.
What does Michigan home insurance cover?
A standard Michigan home insurance policy typically includes six key coverages to protect you from financial loss:
- Dwelling coverage. This protects your home’s structure from covered perils like snow damage caused by harsh winters, wind damage, fires, theft, and vandalism.
- Other structures coverage. This covers damage to detached structures like garages, sheds, and fences.
- Personal property coverage. This part of your policy covers your personal belongings, including your Detroit Bold Coffee collection or Wolverine memorabilia.
- Loss of use coverage. If you can’t live in your home after a covered event, loss of use coverage helps pay for temporary living expenses.
- Personal liability coverage. This coverage protects your legal liability if someone is injured and you’re found responsible.
- Medical payments coverage. This covers minor injuries to guests on your property, regardless of fault.
Additional Michigan insurance coverage options
While this base coverage is a good start, it’s often not enough to provide comprehensive protection. Luckily, you can use these insurance riders and policies to fill in the gaps:
- Flood insurance. Standard home insurance policies don't cover flood damage, which is essential in Michigan, especially near the Great Lakes. Since 1953, Michigan has had 33 declared natural disasters, many involving flooding.
- Wind and hail coverage. Your standard home insurance policy may cover wind damage, but check to ensure it’s enough. You may need a separate rider in storm-prone regions.
- Water and sewer backup coverage. This protects you from water damage caused by backed-up sewers, drains, or sump pump failure. Water backup coverage is essential for homes with older plumbing systems and in areas with aging infrastructure.
- Earthquake insurance. Although earthquakes are rare in Michigan, they can happen. This coverage protects against earthquake-related damage.
- Valuable items coverage. If you own high-value items like expensive jewelry or sports collectibles, scheduled personal property insurance provides extra protection beyond standard limits.
- Home-based business coverage. If you run a business from home, this covers business equipment and liability that standard policies might exclude.
What coverage is recommended in Michigan?
As you shop around for cheap homeowners insurance in Michigan, focus on coverage that protects against the state's biggest risks: wind damage, winter storms, and floods.
For instance, you may want to start with a robust standard policy that includes dwelling coverage, personal property protection, liability coverage, and loss of use coverage. Ensure your policy limits are high enough to rebuild your home and replace your belongings if needed.
Then, check that your policy includes wind damage coverage, as this is a common risk in Michigan. If it's not included, add it.
Since standard policies don't cover floods, strongly consider adding flood insurance, especially if you live near the Great Lakes or in a flood-prone area.
Water and sewer backup coverage is also recommended, particularly if you have an older home or live in an area with aging infrastructure.
Lastly, think about your personal needs. Do you have valuable items that need extra coverage? Do you run a business from home? The best homeowners insurance in Michigan will allow you to tailor your policy to your specific situation.
Insuring your home in Michigan
You’ll usually follow these steps to get home insurance in Michigan:
- Estimate how much home insurance coverage you need.
- Get home insurance quotes from at least three companies in Michigan.
- Don't just look at the price — compare coverage options and customer service ratings. Many providers, including Hippo, offer online tools to make this process easier.
- Once you've chosen an insurer, you'll provide information about your home, including its age, construction type, security features, and any special items you want to insure.
- Your insurer will then provide a policy based on this information. Review it carefully to ensure it meets your needs. Don't hesitate to ask questions about anything you don't understand.
As you shop for homeowners insurance in Michigan, there are several resources you can turn to for help:
- Michigan’s Department of Insurance and Financial Services (DIFS) offers guidance and consumer protection.
- The National Flood Insurance Program (NFIP) provides flood coverage, crucial for those near Michigan's 3,000 miles of freshwater shoreline.
- The Michigan Basic Property Insurance Association (MBPIA) offers basic coverage for those who can't get insurance elsewhere due to high-risk factors.
Is Michigan homeowners insurance required by law?
Homeowners insurance is not mandatory in Michigan, but if you have a mortgage, your lender will require you to have coverage as part of your loan agreement.
If you have a mortgage and don't maintain insurance, your lender can force-place insurance on your property. This type of coverage is typically more expensive than a policy you'd choose yourself and only protects the lender's interest in your property. It doesn't cover your personal belongings or provide liability protection, which can leave you financially vulnerable.
Even if you own your home outright, it's still a very good idea to have homeowners insurance. The average home in Michigan costs $250,534, and that's not including your personal belongings or potential legal liability.
Could you comfortably cover these costs in a complete and total loss? For most families, the answer is no.
Looking for homeowners insurance in a different state?
Click anywhere on the map to view home insurance costs in Wisconsin, Indiana, Ohio, and other parts of the U.S.
Still have questions?
Still have questions about homeowners insurance in Michigan? Explore these frequently asked questions.
Why did homeowners insurance go up in Michigan?
Homeowners insurance in Michigan has steadily increased in recent years due to rebuild costs, inflation, and climate changes. Rates are expected to rise 14% throughout 2024, which is higher than the national average rate increase of 6%.
What is the AE flood zone in Michigan?
Houses in the AE flood zone have a 1% chance of flooding each year. These areas are deemed “high-risk” under the NFIP. Some parts of Northville and Mason County, Michigan, have AE flood zones, among other areas. You can check the FEMA floodplain map for your property’s flood risk.
How much is Michigan condo insurance?
Condo insurance in Michigan is around $659 per year, according to Insurance.com. This is for a $1,000 deductible, $60,000 in personal property coverage and $300,000 in liability coverage.
How much is homeowners insurance in Detroit, MI?
Home insurance in Detroit is more expensive than anywhere else in the state. The average cost of a policy is anywhere from $3,203 to $3,366, depending on which zip code you live in. For comparison, homeowners insurance in Flint is around $2,365 per year, and home insurance in Ann Arbor is around $2,459.
How much is home insurance in Lansing, MI?
Home insurance in Lansing, Michigan costs $2,531 per year on average, based on data from Insurance.com. This breaks down to around $211 per month.
How much is homeowners insurance per month in Michigan?
Homeowners insurance in Michigan costs around $175 per month (or $2,095 per year). This is about $35.58 cheaper per month and $427 cheaper per year than the national average ($2,522).
