Depending on if you live in Traverse City, the “Cherry Capital of the World,” or Detroit, insurance rates vary wildly across the state of Michigan. Does your home have enough coverage to protect against potential flooding, freezing temperatures, or falling trees? Every home is at risk of damage at some point in time. In Michigan, not even the governor is immune.

When mayhem knocks, you want a robust homeowners insurance policy that’s affordable and offers excellent coverage. We’ve compared quotes from the major providers across the state, investigated insurance laws, and sifted through reviews to find a handful of quality insurance companies for The Wolverine State.

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The Best Homeowners Insurance in Michigan

Freshome’s Recommended Homeowners Insurance Companies in Michigan: State FarmAmicaLiberty MutualFarmersTravelers InsuranceGEICO

Freshome’s top three recommended companies for Michigan are State Farm, Amica, and Liberty Mutual. However, we discovered that quotes can differ greatly depending on what part of the state your home is located in. For example, those living in Detroit pay nearly four times as much in premiums as those living in Grand Rapids. The quotes cited below do not necessarily reflect your own quotes; keep in mind that quotes are highly personalized, so you should seek out your own quotes and compare before decided on what company to go with.


We used the same scenario for each of the quotes below. The insured was a 30-year-old nonsmoking male with no prior insurance claims; he’s gainfully employed and has a Bachelor’s degree. He sought $127,000 in full-replacement coverage for his home, a 1,088-square-foot house located in Detroit. While numerous discounts are available, we used only what could be expected from any modern home: an on-premise security system, smoke detectors, and a reasonable expectation of quality. In addition, we also sought out HO3 policies, Freshome’s most highly recommended type of home insurance policy.

The companies were not chosen arbitrarily. Each company we investigated had to meet strict criteria concerning its financial safety ratings and overall customer service. All of the companies have a J.D. Power overall satisfaction rating of three or more stars, as well as a B+ or higher rating from A.M. Best and the equivalent from Moody’s or Standard & Poor’s.

The Benefits of an HO3 Policy

An HO3 policy is what’s known as an “all risk” policy (sometimes referred to as an “open perils” policy. This means that it covers all causes of loss except those that are specifically excluded from the policy. Common exclusions are explained farther down the page.

While HO3 policies tend to be slightly more expensive than other types, the broad spectrum coverage they provide is worth the cost. As long as you understand what is excluded from an HO3 policy (and seek out a named peril policy or endorsement to cover the threat), it is one of the best options for homeowners insurance.

The standard policy provides coverage in six areas:

Coverage A is dwelling coverage. This is the main aspect of a homeowners insurance policy and provides protection for your home itself.

Coverage B is extended protection. This covers detached structures on your property, such as garages, storage buildings, fences, and similar constructions. This coverage is typically limited to 10 percent of Coverage A, but can be increased if needed.

Coverage C is personal property protection. This coverage area protects the contents of the home and is usually 75–80 percent of Coverage A. However, if you have items of particular value, such as rare paintings, furs, precious jewels, or anything else that is worth an unusual amount, it’s a good idea to take out a separate policy on that item.

Coverage D is loss of use coverage. In the event your home must be repaired or rebuilt, loss of use provides the necessary funds to stay in a hotel or rental home until the construction is finished. The amount granted varies from policy to policy.

Coverage E is personal liability protection. If you are sued or involved in litigation for any reason, your personal assets can be placed at risk. This coverage creates a buffer between your personal items of value and the lawsuit.

Coverage F is medical payment coverage. This coverage comes into effect if someone is injured on your property; whether you are at fault or not, this coverage will pay out and help cover their medical bills, shielding you from liability.


“I’ve been in real estate for thirty years, and first time homebuyers usually have no clue about buying a house. I usually recommend that they talk to their car insurance company, if they currently have car insurance, because their insurance company may also have a homeowners program as well. They already have an established relationship with them.” – Sharon Reid Brown, Realtor at

State Farm provide a quote of $147 per month, or $1,759 annually with a 1 percent ($1000 minimum) deductible. This quote was for $127,000 in dwelling coverage, $12,700 in extended property coverage, and $95,250 in coverage for the contents of the home.

Our Quotes
State Farm $1,759 Per Year
Amica $1,781 Per Year
Liberty Mutual $3,175 Per Year

Amica provided a quote of $178 for 10 months or $1,781 annually with a $2,500 deductible. This quote was for $127,000 in dwelling coverage, $12,700 for extended property coverage, $95,250 for personal property coverage, $38,100 for loss of use coverage, $500,000 in personal liability coverage, and $5,000 in medical payments coverage.

Liberty Mutual provided the highest quote of the three, citing $264 per month or $3,175 annually with a $1,000 deductible. This quote included $127,000 in dwelling coverage, $12,700 in extended property coverage, $63,500 for personal property coverage, $25,400 for loss of use coverage, $300,000 in personal liability coverage, and $1,000 in medical payments coverage.

What You Should Know Before Getting a Quote

No matter what type of home insurance you currently have, you should make sure you have enough for a full replacement. The majority of homeowners insurance policies are divided into two types: repair policies and replacement policies. You want a replacement policy.

Despite the relatively high quotes shown above, the average cost of homeowners insurance in Michigan is only $66 per month, or $797 per year. This is 21 percent below the national average. The rates were so much higher in the given quotes because the home was found in Detroit, an area with historically higher rates.

Foreclosed homes also suffer from damages a well-maintained home would not. The lack of maintenance, temperature control, and other amenities that keep a home livable can lead to unexpected damages. According to Matt Whitener, a real estate agent in Michigan, “There are a lot of different factors that end up causing damage, but for an umbrella situation, foreclosures cause the most damage to homes in my area.”

What Can Affect My Rate?

There are a variety of different factors that affect your home insurance quote. However, the most common are:

  • The amount and type of coverage
  • Your home’s age and its condition
  • Your personal claim history
  • The material your home is made of (brick homes usually have lower premiums than wood frame homes)
  • The location of your home (premiums are higher in areas with high crime rates, historically high claims, and higher weather risks)
  • How close you are to fire and police presence
  • How much it would cost to completely rebuild your home

Keep in mind that if you are eligible for insurance under Michigan law, you cannot be denied coverage because of the age of the house, its location, or the type of neighborhood it is in. Your premiums may be affected, but you will still be able to obtain home insurance.

Insurance companies do have the right to refuse to insure you, however, under certain conditions. If you’ve been convicted of a destructive felony (arson, explosives, etc.) within the past five years, you may be denied coverage. Denial of insurance can also be due to any denied claims in the past five years because of suspected arson. If you are two years behind on your property taxes or you have had a policy cancelled due to non-payment, insurance companies can also refuse to insure you.

That said, there are other options. If you are ineligible for insurance from private companies, tell your agent to contact the Michigan Basic Property Insurance Association (MBPIA). This organization was formed in 1968 to provide standard insurance rates across the state regardless of location under the belief that all citizens are entitled to proper insurance.

Necessary Information for an Accurate Quote

Quotes are not necessarily accurate if you do not provide all the information at the time of the quote. Here’s what you should have within reach when applying for quotes to guarantee the most accuracy possible:

  • The construction material of your home
  • The layout and floor plan of your home
  • The number of rooms in your home and their types (bathrooms, bedrooms, etc.)
  • Whether your garage is detached or not
  • The total square footage of your home
  • The distance your home is located from fire and police services, and if your home has systems monitored by the local departments
  • Your claims history

In addition, many insurance companies will request your Social Security number. However, some will run a credit check automatically; while this will not affect your credit score, it does leave a record of the inquiry. Too many inquiries in a short period of time can negatively affect you.

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Why Are Michigan’s Rates So Low?

As stated before, the average insurance cost in Michigan is just $797 per year, 21 percent below the national average. In spite of this, rates in Detroit can be as much as three times higher. While Michigan is prone to severe weather through the year, ranging from heat waves to tornadoes, homes in the area are constructed with the climate in mind. This makes them much more resistant to weather and less likely to be damaged.

The rate in Detroit, however, has a simpler explanation: extraordinarily high crime rates. Despite a drop in the overall state crime rate, Detroit remains on the FBI’s list of most dangerous cities in the country, alongside neighboring the cities of Flint and Pontiac.


What are common coverage gaps?

While an HO3 policy covers a broad range of threats to your home, there are a number of common coverage gaps, including:

  • Earthquakes
  • Flooding
  • Sump pump backups
  • Ordinance changes
  • War
  • Neglect

What about flood insurance?

Michigan has 3,288 miles of freshwater coastline and more than 300 named rivers. Flood insurance is absolutely essential for anyone living near these areas, but it also applies to those who live outside an area prone to natural flooding. If a pipe freezes during a harsh Michigan winter and bursts, flooding your home, you won’t be covered unless you have flood insurance.

If you do not currently have flood insurance, speak to your agent or contact the National Flood Insurance Program to find an agent to walk you through the process.

What can I do to reduce my premiums?

While Michigan’s premiums tend to be low in most areas, you still want to save money. Here are several steps you can take.

Pay in full.

If you pay your entire annual premium at once, you save money compared to paying it on a month-to-month basis.

Stop smoking.

Because more than 7,500 fires occur each year due to smoking, many insurance companies will offer discounts to non-smokers.

Bundle your policies.

If you buy home and auto insurance from the same company, you can often save as much as 30 percent on both premiums.


When applying for your quote, ask the agent what discounts you may qualify for. There are discounts for belonging to a certain organization, attending a certain college, and numerous other things.

Take Action

No matter where you live in the state, your home needs to be insured. Most people don’t have enough money on-hand to rebuild their home from scratch, so you have to take steps to guarantee you’re protected against total loss. If you aren’t sure about the amount of coverage you have (or your home has gone through renovations and increased in value), check with your insurance provider to ensure you have enough coverage to rebuild your home if necessary. Don’t wait until disaster strikes.

Freshome’s Recommended Homeowners Insurance Companies in Michigan: State FarmAmicaLiberty MutualFarmersTravelers InsuranceGEICO

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: