The Best and Cheapest Homeowners Insurance Companies in Michigan

The average cost of homeowners insurance in Michigan is $1,225 per year. Companies like Frankenmuth Insurance and Allstate also offer cheaper-than-average rates.

Best cheap home insurance in Michigan

Cheapest companies for homeowners insurance in Michigan

One of the most important factors when deciding on a homeowners insurance company is how much you'll pay. We collected over 10,000 quotes in Michigan and found that Auto-Owners, Frankenmuth and Allstate have the best rates statewide.

Best home insurance for most people: Auto-Owners Insurance

The home insurance company we recommend for most people in Michigan is Auto-Owners Insurance. We were impressed with the company's very affordable average rate of just $249 per year, which is 80% less than the statewide average of $1,225. Plus, the company has well-regarded customer service, as well as a nice variety of home insurance coverages and discounts.

The only potential drawback to Auto-Owners is that it's only available directly from an insurance agent. If there are no Auto-Owners agents near you, or if you prefer to buy and manage your insurance policy online, you may need to look at another company.

Best for bundling: Allstate

Our runner-up choice for homeowners insurance in Michigan and our recommendation for car insurance bundling is Allstate. It has a generous discount for bundling home and auto insurance together, and Allstate's typical rate of $647 a year is better than average among Michigan insurers.

As a major national insurer, Allstate also has a robust set of online tools. Unlike our top pick, which you can only get by contacting an insurance agent, you can buy and manage your Allstate policy directly online. This makes it a great option for people who don't live near an insurance agent, or who simply prefer to manage their insurance policies themselves.

Allstate earned an average score on J.D. Power's customer satisfaction survey. It also receives an average number of customer complaints based on its size, according to the National Association of Insurance Commissioners (NAIC). Homeowners may experience a more streamlined, positive claims process with another insurer.

Best-rated service: Frankenmuth

For homeowners who prize dependable service but still want an affordable rate, we recommend Frankenmuth. It has the best-rated service of any insurer we considered in Michigan, receiving a perfect five-star rating in our analysis.

While Frankenmuth is more expensive than our top pick, it's still much cheaper than the average rate statewide: we found a typical price of $528 per year, or 57% less than the average rate in Michigan.

However, coverage from Frankenmuth isn't very customizable — the company offers two packages with set coverage options. Although the Ultra Home Guardian package offers robust protections, you can't pick and choose the coverage you'd like.

Best for high-value homes: Chubb

Owners of high-value homes should take a good look at Chubb. Chubb's typical rate of $1,016 a year is less than the average cost we found statewide, but where Chubb really shines are its coverages and customer service.

The company offers special protections that should appeal to people with a lot of assets, such as guaranteed replacement cost coverage and a cash-out option. If your home is completely destroyed, you can opt to simply receive a check from Chubb for its value without being required to use the money to rebuild your home.

However, Chubb only caters to the higher end of the home insurance market. The company has a minimum coverage amount, meaning that you'll only be able to get a policy from them if you commit to purchasing a certain level of protection. Chubb doesn't publish this amount, but it's much higher than a typical homeowner would need in Michigan.

Michigan home insurance rates: City-by-city

Detroit has the highest costs for homeowners insurance statewide, with a typical rate of $2,800 per year.

Home insurance costs vary by location — you might pay more for coverage if you live in an area with high crime, or in a rural area without a nearby fire department. We found a difference of $1,894 per year between the most and least expensive cities for home insurance in Michigan.

If you'd like to see how costs in Michigan compare to other parts of the U.S., you can find those numbers in our study of home insurance rates by state.

Best homeowners insurance companies in Michigan

The home insurance companies we rated as the best in Michigan are Frankenmuth, USAA and Auto-Owners. These insurers all offer highly dependable customer service alongside useful coverage options.

All three insurers offer affordable rates: Auto-Owners and Frankenmuth were the best and second-best priced insurers in the state, respectively. And USAA's rates were better than average, too.

Most common homeowners insurance perils in Michigan

Located in the Upper Midwest, the key perils — or potential causes of damage to your home — to Michigan and its homeowners are related to storms, and they can strike year-round. In the warmer months, rainstorms and tornadoes are common occurrences, whereas in winter, snowstorms and blizzards can cause significant damage.

Storm damage from wind

Wind damage to roofs, windows and home siding is one of the most common types of insurance claims made nationwide. Fortunately, damage from wind is almost always covered by homeowners insurance, no matter what type of policy you have. It's one of the 16 basic perils included in home insurance insurance policies.

In some places in the U.S., homeowners may have a separate wind deductible. However, this is more common in states along the coasts, where large-scale hurricane winds can cause millions or billions of dollars of damage, than in Michigan.

Storm damage from weight of snow

Another common cause of damage from winter storms is the weight of snow on roofs. If snow causes your roof to collapse or otherwise get damaged, homeowners insurance should cover the damage. However, keep in mind that if your roof is leaky due to lack of maintenance and water gets into your home, insurance won't cover it.

Storm damage from flooding

One key type of storm damage is not covered by insurance: flooding. If your home is flooded from a rainstorm or other major source of water, you can't count on standard homeowners insurance to pay for the damage.

Michigan homeowners who are concerned about flooding — especially those who live in a high-risk flood area, such as low-lying areas near major lakes or rivers — should purchase a flood insurance policy to cover water damage. There are two main options for flood insurance. You can buy a policy backed by the federal government through the National Flood Insurance Program (NFIP) that is sold through a private insurer, or you can buy a policy from a private flood insurance company.

Methodology

To do our comprehensive analysis of Michigan homeowners insurance, we collected quotes from nine of the largest insurance companies in Michigan. From each company, we gathered a quote for one sample property for every residential ZIP code in Michigan. Our sample property was built in 1971 and has a dwelling coverage limit of $154,900.

Insurance companies included in our study

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.