6 Best Homeowners Insurance Companies in Michigan of 2023

Whether they live in cities like Detroit or Ann Arbor or towns like Bloomfield or Meridian, Michigan homeowners 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.

Lemonade: Best for Online Services & Automation

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 and recommend coverage options.

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

Allstate: Best for Unique Policy Endorsements

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.

Liberty Mutual: Best for Discounts

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.

Auto-Owners Insurance Company: Best for Affordable Prices

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.

Chubb: Best for High-End Homes

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.

Frankenmuth: Best for Customer Service

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. They also can 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.

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.

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.

Our Methodology

We've researched 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.