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6 Best Homeowners Insurance Companies in Michigan of 2022

Aimee Parrott

Aimee Parrott

Learn which homeowners insurance companies offer the best policies for Michigan homeowners, including details about cost, discounts, and coverage.
Ann Arbor Michigan

Michigan homeowners, whether they live in cities like Detroit or Ann Arbor or towns like Bloomfield or Meridian, know how important it is to protect their homes by purchasing homeowners insurance.

While MI state does not have a law requiring homeowners insurance, all lenders make it a prerequisite for getting a mortgage.

The average cost of a homeowners policy in Michigan is $1,290, which works out to $107 per month.

At PropertyNest, we want all homeowners to make informed decisions about homeowners insurance, which is why we’ve compiled this list of the best homeowners insurance companies in Michigan.

Best Homeowners Insurance Companies in Michigan

  • Lemonade: Best for Online Services & Automation
  • Allstate: Best for Unique Policy Endorsements
  • Liberty Mutual: Best for Discounts
  • Auto-Owners Insurance Company: Best for Affordable Prices
  • Chubb: Best for High-End Homes
  • Frankenmuth: Best for Customer Service

Lemonade: Best for Online Services & Automation

Editors star rating review
4.5
Editor's Rating (4.5 Stars out of 5)

Lemonade is a (relatively) new arrival on the homeowners insurance scene, but they’ve made a splash by embracing technology in a way few other companies have.

The company uses artificial intelligence (AI) to provide almost-immediate quotes for homeowners insurance as well as for recommending coverage options.

Homeowners in Michigan can opt to get a quote on Lemonade’s website or on Lemonade’s free mobile app.

The mobile app deserves special mention because it can be used to get quotes, change coverage, and even to file claims, some of which can be processed immediately..

Lemonade’s basic coverage provides protection for dwellings, personal belongings, and personal liability, and there are add-ons and endorsements available.

One of the things we like best about Lemonade is that they are a philanthropic company thanks to their Lemonade Giveback, which donates unclaimed money to charity every year.

Lemonade coverage starts as low as $25 per month, but that number is only for basic coverage and may increase depending on the size and location of your home, as well as your coverage limits and endorsements.

Read a full Lemonade home insurance review.

Lemonade Homeowners Insurance Discounts

Lemonade prides itself on offering low prices as a matter of course, so they don’t offer much in the way of discounts, apart from these three.

  • Policy bundling allows homeowners to save by buying two or more policies from Lemonade.
  • Annual payments will qualify you for a discount.
  • Protective devices installed in your home, including fire and burglar alarms or smoke detectors, will earn you a discount.

Lemonade Homeowners Insurance Pros & Cons

Pros
  • Lemonade has a well-regarded mobile app that you can use to change coverage or file claims.
  • AI technology allows people to get online or mobile quotes in minutes.
  • Claims filing is quick and easy and some claims are paid immediately.
  • Customer wait times for assistance are only 3 minutes on average.
  • Lemonade’s pricing is lower than many other carriers.
  • Lemonade is a philanthropic company.
Cons
  • Offline help is not always available.
  • Quotes are only available online.
  • Lemonade offers only a few basic discounts.
  • Lemonade doesn’t have a long track record and its financial strength has not been rated.
How is Lemonade Homeowners Insurance Rated?
J.D. Power (out of 1,000)870
BBBB+
NAIC Complaint Index1.94

Allstate: Best for Unique Policy Endorsements

Allstate homeowners insurance Michigan
Editors star rating review
5.0
Editor's Rating (5 Stars out of 5)

Allstate is a large insurance company that’s well-known for providing homeowners insurance all over the United States.

While the company’s financial strength and reputation are impressive, we selected them for our list because they make it easy for homeowners to customize their coverage.

We also like that their online services are streamlined and easy to navigate, and especially that the process for filing a claim online is simple and quick.

You should remember that Allstate doesn’t offer standard replacement cost coverage, which means you’ll pay extra to add it as an endorsement.

Allstate’s average cost in Michigan is $1,460, which works out to $122 per month, but you can save by stacking discounts.

Read a full Allstate homeowners insurance review.

Allstate Homeowners Insurance Discounts

Allstate offers many discounts for Michigan homeowners, which can be stacked to increase your savings.

  • Welcome discount provides a 10% reduction in rates when you switch to Allstate.
  • New homebuyers can get a discount, and you’ll get a bigger break if you buy a newly-built home.
  • Claims-free discount will save you money if you have no recent homeowners insurance claims.
  • Early signing discount will save you money if you buy your Allstate policy a week or more before the expiration date of your current policy.
  • Bundling discount will save you money if you bundle your homeowners policy with one or more additional policies.
  • New roof discount provides homeowners a reduction in premium if their home has a new roof.
  • Responsible payer discount will kick in if you make your payments on time.
  • Protective devices discount will reduce your premium if your home has installed fire or burglary alarms.

Allstate Homeowners Insurance Pros & Cons

Pros
  • Allstate has an easy-to-navigate website.
  • Their Rate Guard feature makes it easy to lock in your premium.
  • Unique endorsements are available, including medical coverage for guests, yard & garden repairs, and recovery of personal electronic data.
  • HostAdvantage coverage protects you if you share your home or rent it.
  • The company provides an optional digital identity tracking tool.
Cons
  • Replacement coverage cost does not come with their standard policy.
  • Flood insurance must be purchased separately – although Allstate will work with you to facilitate your claim with FEMA.
  • Without discounts, the premiums are higher than the state average for Michigan.
How is Allstate Homeowners Insurance Rated?
J.D. Power (out of 1,000)815
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index2.05
BBBA-

Liberty Mutual: Best for Discounts

Liberty Mutual homeowners insurance Michigan
Editors star rating review
4.5
Editor's Rating (4.5 Stars out of 5)

Liberty Mutual is a company with a long history and a strong record of paying claims in a timely manner.

We chose them for our list because they offer more discounts than any other carrier, and homeowners in Michigan can stack discounts to increase their savings.

In addition to standard homeowners insurance coverage, Liberty Mutual offers tons of customizable options with add-ons including inflation protection and identity theft protection.

They also have a good website and an easy-to-use mobile app, where you can manage your policy, pay your premium, or file claims.

The average cost of homeowners insurance from Liberty Mutual is $87 per month, which is lower than the state average, and can be lowered even more with discounts.

Read a full Liberty Mutual home insurance review.

Liberty Mutual Homeowners Insurance Discounts

Liberty Mutual offers nine discounts to help Michigan homeowners save on their premium.

  • Newly purchased home discount gives new homeowners a break on their coverage.
  • New roof discount provides a discount for any homeowner with a newly-constructed roof.
  • New/renovated home discount provides a reduction in premium for anyone living in a new or renovated home.
  • Paperless policy discount allows homeowners to help the environment and save money.
  • Claims-free discount offers a break if you have not filed a recent homeowners insurance claim.
  • Early shoppers get a discount if you buy a Liberty Mutual policy before your old policy expires.
  • Autopay discount provides a break if you sign up to pay automatically.
  • Multi-policy discount will get you a break if you buy two or more policies with Liberty Mutual.
  • Insured-to-value discount applies if you purchase coverage for 100% of the replacement cost of your home.

Liberty Mutual Homeowners Insurance Pros & Cons

Pros
  • There are more discounts available than with any other carrier.
  • There is excellent customer support available via phone, social media, and text.
  • You can purchase inflation coverage to increase your policy limit as the value of your home rises.
  • Live chat is an option if you need help with your quote.
  • Liberty Mutual has a well-regarded mobile app for claims filing and other services.
  • You can purchase flood insurance as an add-on.
Cons
  • Some of Liberty’s discounts may not be available in every state and some don’t apply to older homes.
  • Coverage isn’t available for some dog breeds.
  • Liberty Mutual doesn’t offer as many add-on coverage options as other companies.
  • There is a higher-than-average volume of customer complaints.
How is Liberty Mutual Homeowners Insurance Rated?
J.D. Power (out of 1,000)805
A.M. Best - Financial Strength RatingA
BBBA+
NAIC Complaint Index2.37

Auto-Owners Insurance Company: Best for Affordable Prices

Editors star rating review
4.0
Editor's Rating (4 Stars out of 5)

Auto-Owners Insurance Company is based in Michigan and receives high scores for customer service.

We chose it for our list because their prices are significantly more affordable than other carriers in the state.

They also offer an impressive array of discounts and add-ons, making them a solid choice for any Michigan homeowner.

The base cost of insurance with Auto-Owners is just $21 per month, although, of course, you should expect to pay more if you own a high-value home, want high limits, or add coverage.

Auto-Owners Company Homeowners Insurance Discounts

In addition to having affordable premiums overall, Auto-Owners Insurance Company offers a full list of discounts on its homeowners coverage.

  • Multi-policy discount allows you to save with two or more policies from the company.
  • Pay in advance discount will earn you a break if you pay your annual premium in advance. (Does not apply to escrow direct-bill accounts.)
  • Pay on time discount will provide you with a break if you pay your premiums on time for 36 months.
  • Green discount rewards policyholders who opt for paperless policies and billing.
  • Water shut-off discount provides a break for homeowners who have an automatic shut-off for their water if a leak is detected.
  • Protective devices discount reduces your premium if you have installed alarms.
  • Automatic backup generator discount gives you a break if you have a generator.
  • Mortgage-free discount applies if you have paid off your mortgage.
  • Advance quote discount saves you money if you buy your policy with Auto-Owners before your existing policy expires.

Auto-Owners Insurance Company Homeowners Insurance Pros & Cons

Pros
  • Auto-Owners offers the most affordable insurance in Michigan.
  • There are eight discounts to help homeowners save money.
  • The company receives high scores for customer service.
  • While not as large as some of the other companies on our list, Auto-Owners has strong financial ratings and a good record of timely claims payment.
Cons
  • Quotes may only be obtained through an agent.
  • Online services are not as robust as with some other companies.
How is Auto Owners Homeowners Insurance Rated?
J.D. Power (out of 1,000)874
A.M. Best - Financial Strength RatingA++
BBBA+

Chubb: Best for High-End Homes

Chubb homeowners insurance Michigan
Editors star rating review
4.5
Editor's Rating (4.5 Stars out of 5)

Chubb is one of the best-known insurance companies and the largest publicly-traded property and casualty company in the world.

Chubb makes our list because they offer a policy that’s designed specifically for homeowners whose houses are worth over a million dollars, with some unique coverages to provide maximum protection.

Masterpiece Homeowners is the best choice for high-value homes, particularly those in areas that are prone to natural disasters such wildfires, tornados, or severe winter storms.

Chubb’s average cost in Michigan is $1,015 per year, which puts it lower than the state average – however, you should keep in mind that adding endorsements will increase your premium.

The good news is that you can layer multiple discounts to reduce your costs.

Chubb Homeowners Insurance Discounts

Michigan homeowners with high-value homes can save with six discounts from Chubb.

  • Multi-policy discount can save you up to 10% if you pair homeowners insurance with auto or life coverage from Chubb.
  • Claims-free discount allows homeowners to save up to 10% by going three or more years without a claim.
  • New or renovated home discount means you’ll save 17% for a recently renovated home and as much as 24% for a newly constructed home.
  • Fire and security discount will help you save if you install sprinklers, fire alarms, a security system, or use fire-resistant construction.
  • Backup generator discount will give you a break on your premium if you install a permanent backup generator.
  • No mortgage discount will take 10% off your premium when you pay off your mortgage.

Chubb Homeowners Insurance Pros & Cons

Pros
  • Offers special insurance for high-value homes with higher limits than other companies.
  • Has a cash-out option that allows you to take a payout instead of rebuilding.
  • Will pay to rebuild your home even if the cost exceeds your policy limit.
  • Policy includes special coverage such as ID theft protection, replacement value of your belongings, and water backup coverage.
  • Add-ons include earthquake insurance and private flood insurance.
  • There are six discounts available to reduce your premium.
Cons
  • Quotes may only be obtained through an agent and are not available online.
  • Coverage is available only for high-value homes and there is only one type of policy available.
How is Chubb Homeowners Insurance Rated?
J.D. Power (out of 1,000)809
A.M. Best - Financial Strength RatingA++
BBBD-
NAIC Complaint Index0.21

Frankenmuth: Best for Customer Service

Editors star rating review
4.5
Editor's Rating (4.5 Stars out of 5)

Frankenmuth Insurance is a Michigan-based company with a stellar track record in customer service, which is why we chose it for our list.

The company offers basic homeowners insurance plus Ultra Home Guardian coverage with a full array of additional coverages, including water & sewer backup, debris removal, and even cell phone replacement.

Claims can be filed 24 hours a day using the company’s website, or by calling them. They also have options to file a claim through one of their independent local agents.

The best part about these discounts is that they apply on top of Frankenmuth’s already-low rates, which start at just $528 per year, or $44 per month.

Frankenmuth Homeowners Insurance Discounts

Frankenmuth offers five discounts to help Michigan homeowners save on their premium.

  • Multi-policy discounts are available if you bundle your homeowners policy with auto or life insurance.
  • Advance quote discount gives you a break if you buy your policy with Frankenmuth before your existing policy expires.
  • Payment plan discount provides savings if you pay your premiums on time.
  • Loss history discount allows you to save if you haven’t filed a homeowners insurance claim.
  • Protective device discount is there to help homeowners with installed alarms and detectors save on their insurance.

Frankenmuth Homeowners Insurance Pros & Cons

Pros
  • The company receives top ratings for customer service.
  • The Ultra Home Guardian coverage provides unique protection for things like water & sewer, cell phone replacement, and replacement value coverage for personal property.
  • Premiums are low when compared to the state average.
  • There are multiple discounts available.
Cons
  • Quotes are not available online and must be obtained through an agent.
  • Frankenmuth does not have a mobile app at this time.

How's Frankenmuth Rated?

Frankenmuth may not be as well-known as some of the other companies on our list, but it is well-regarded.

  • A.M. Best: A
  • BBB: A+

While Frankenmuth does not have a rating with the National Association of Insurance Commissioners (NAIC), the organization has stated that the company receives very few complaints overall.

While we believe that online services are important, Frankenmuth provides local, personalized service that many homeowners in Michigan will appreciate.

Here are the pros and cons of buying your homeowners insurance with Frankenmuth.

Our Methodology

We've researched 14 of the top homeowners insurance companies in Michigan and narrowed it down to those that operate here.

We rated them on criteria that included ease of use, ratings, financial strength, customer, and affordability.

We surveyed the list of insurance companies such as Lemonade, Allstate, Liberty Mutual, Aut-Owners Insurance Company, Chubb, Frankenmuth, State Farm, USAA, Travelers, Farmers, Progressive, Nationwide, Geico.

We surveyed home insurance coverage prices in Detroit, Grand Rapids, Warren, Sterling Heights, and Lansing.

How We Ranked and Picked the Best Homeowners Insurance Companies in Michigan

We recognize that buying homeowners insurance can be stressful and time-consuming. We prioritized companies and chose them for our list based on the following criteria.

Cost

Cost is a primary concern to most homeowners, and that’s why we focused on companies with low starting costs compared to the state and national averages.

Available Discounts

Discounts can help homeowners reduce the cost of insurance, so we focused on companies that offer two or more sizable discounts, particularly those with discounts that could apply to most homeowners in Michigan.

Available Coverage

Coverage needs vary from homeowner to homeowner, which is why we focused on companies that offer an array of add-ons and endorsements to help Michigan homeowners customize their policies.

Customer Service

Customer service should always be a priority, so we selected companies that offer multiple ways for policyholders to get help with their claims or policies.

Technology

Technology has become a fact of life, which is why we chose companies with well-designed websites and mobile apps.

What Are the Factors That Impact the Cost of Homeowners Insurance?

Many factors can impact the cost of homeowners insurance in Michigan.

Deductible

Choosing a low deductible will increase your monthly premiums, while choosing a high one will save you money on an ongoing basis but require a bigger out-of-pocket expense if you file a claim.

Coverage Limits

We’ll review how much coverage you need in the next section, but homes with higher appraisals will require more coverage (and higher premiums) than homes that cost less.

Location

As a rule, homes in areas that are prone to natural disasters, are near a body of water, or are in an area with high crime rates tend to generate higher homeowners premiums than those in low-risk areas.

Additional Coverage/Endorsements

Adding any additional coverage to your policy will increase your costs, although some carriers (such as Frankenmuth) offer affordable policies that have additional coverage built in.

How Much Homeowners Insurance Do You Need?

A basic homeowners policy provides coverage for your home and other buildings on your property, as well as providing coverage for your belongings and liability.

The amount of coverage you need can be calculated using the value of your home as outlined in this guide.

  • Dwelling coverage provides protection for your home and attached structures, and you’ll need enough coverage to rebuild your home entirely.
  • Other structures coverage protects outbuildings and other structures on your property, including fences and sheds, and should total 10% of your dwelling coverage.
  • Personal property coverage protects your personal belongings in the event they’re stolen, destroyed, or damaged, and should total between 50% and 70% of your dwelling coverage.
  • Liability coverage protects you personally if someone should be injured or their property is damaged while in your home or its grounds, and most experts recommend between $100,000 and $500,000 of coverage.
  • Medical payments coverage protects you by paying some of the medical costs if a guest is injured on your property, with most coverage limited to between $1,000 and $5,000 per guest.
  • Additional living expenses coverage pays for you and your family to find temporary lodging if your home should become unlivable, and you should get about 20% of your dwelling coverage.

If you add everything up except your personal liability and medical payments coverage, you’ll need about two times the replacement value of your home to be safe.

What Is and Isn’t Covered by Homeowners Insurance

Homeowners insurance provides substantial coverage if your home or property is damaged or destroyed, but it doesn’t cover everything.

Here’s an overview of the things that are covered by a standard homeowners insurance policy.

  1. All structures on your property, including your house, fences, sheds, detached garages, and other buildings.
  2. Your personal belongings, whether they are in your home when they are damaged or stolen or not.
  3. Property damage caused by covered events, for example, a large blizzard that led to damage to your roof.
  4. Your personal liability is covered if someone who’s in your home is injured or their property is damaged.
  5. Medical expenses incurred by guests in your home.

Of course, all coverage is subject to your deductible and policy limits.

Here are some things that are not covered by your standard homeowners insurance:

  • Pest damage or infestation.
  • Flood damage.
  • Earthquake damage.
  • Power failure.
  • Neglect.
  • Government action.
  • Nuclear hazard.

Many of these items can be remedied by adding endorsements to your policy or buying separate coverage, such as flood insurance from FEMA.

The only items that cannot be remedied are the last three: you are responsible for proper upkeep of your property, and the last two items, while unlikely, cannot be addressed with riders or outside coverage.

Synopsis

Here at PropertyNest, we recommend buying enough homeowners insurance to cover rebuilding your home in Michigan.

Keep in mind that many factors, including your location, may impact how much you pay for your insurance coverage.

Our recommendation is to get quotes from at least three insurance companies and compare costs and coverage before you buy a policy.

Frequently Asked Questions

Is home insurance mandatory or optional?

While Michigan does not have a law requiring homeowners insurance, all lenders make it a prerequisite for getting a mortgage.

How much is the average homeowners insurance in Michigan?

The average cost of a homeowners policy in Michigan is $1,290, which works out to $107 per month.

What are the 4 factors affecting home insurance cost?

The 4 factors that can impact the cost of homeowners insurance in Michigan include: location of home, deductible, coverage limits, and additional coverage/endorsements.

What isn’t covered by homeowners insurance?

Some things not covered by a standard homeowners insurance policy include: pest damage or infestation, flood damage, earthquake damage, power failure, neglect, government action, and nuclear hazard.

What is covered by homeowners insurance?

Items that are covered by a standard homeowners insurance policy include: all structures on your property, your personal belongings, property damage, your personal liability, and medical expenses incurred by guests in your home.