6 Best Homeowners Insurance Companies in Michigan of 2023
Michigan homeowners, residing in cities like Detroit or Ann Arbor, or towns like Bloomfield or Meridian must purchase homeowners insurance to safeguard their homes.
It is a prerequisite for mortgage approval and is required by all lenders. Even though no law in MI mandates homeowners insurance, it is crucial to protect your investment. So, get your homeowners insurance now to secure your property.
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 Michigan's best homeowners insurance companies.
The 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
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 get a quote on Lemonade’s website or free mobile app.
The mobile app deserves special mention because it can be used to get quotes, change coverage, and even file claims, some of which can be processed immediately.
Lemonade’s basic coverage protects dwellings, personal belongings, and personal liability; add-ons and endorsements are 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 and your coverage limits and endorsements.
Lemonade Homeowners Insurance Discounts
Lemonade prides itself on offering low prices, so they don’t offer many 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.
Read a full Lemonade home insurance review.
| J.D. Power (out of 1,000) | 870 |
|---|---|
| BBB | B+ |
| NAIC Complaint Index | 1.94 |
Allstate: Best for Unique Policy Endorsements
Allstate is a large insurance company 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, especially since 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.
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.
- A claims-free discount will save you money if you have no recent homeowners insurance claims.
- An 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 discounts will save you money if you bundle your homeowners policy with one or more additional policies.
- A new roof discount reduces homeowners' premiums if their home has a new roof.
- A 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.
Read a full Allstate homeowners insurance review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
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.
Liberty Mutual Homeowners Insurance Discounts
Liberty Mutual offers nine discounts to help Michigan homeowners save on their premiums.
- A 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.
- A new/renovated home discount reduces the premium for anyone living in a new or renovated home.
- A 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.
- A 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.
Read a full Liberty Mutual home insurance review.
| J.D. Power (out of 1,000) | 805 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
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 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.
- A 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. (Does not apply to escrow direct-bill accounts.)
- Pay on time discount will give you a break if you pay your premiums on time for 36 months.
- Green discount rewards policyholders who opt for paperless policies and billing.
- A water shut-off discount provides a break for homeowners with an automatic shut-off for their water if a leak is detected.
- Protective devices discount reduces your premium if you have installed alarms.
- The automatic backup generator discount gives you a break if you have a generator.
- Mortgage-free discount applies if you have paid off your mortgage.
- An advance quote discount saves you money if you buy your policy with Auto-Owners before your existing policy expires.
| J.D. Power (out of 1,000) | 874 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
Chubb: Best for High-End Homes
Chubb is one of the best-known insurance companies and the world's largest publicly traded property and casualty company.
Chubb makes our list because they offer a policy designed specifically for homeowners worth over a million dollars, with 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 as 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.
- A multi-policy discount can save up to 10% if you pair homeowners insurance with auto or life coverage from Chubb.
- A claims-free discount allows homeowners to save up to 10% by going three or more years without a claim.
- A 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 discounts will help you save if you install sprinklers, fire alarms, or a security system or use fire-resistant construction.
- A 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.
| J.D. Power (out of 1,000) | 809 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | D- |
| NAIC Complaint Index | 0.21 |
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.
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.
- An advance quote discount gives you a break if you buy your policy with Frankenmuth before your existing policy expires.
- A payment plan discount provides savings if you pay your premiums on time.
- A 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.
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 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 with additional coverage.
How Much Homeowners Insurance Do You Need?
A basic homeowners policy provides coverage for your home and other buildings on your property and 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 belongings if 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 payment coverage protects you by paying some 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 you and your family to find temporary lodging if your home becomes 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.
- All structures on your property, including your house, fences, sheds, detached garages, and other buildings.
- Your personal belongings, whether they are in your home, are damaged or stolen or not.
- Property damage caused by covered events, for example, a large blizzard that led to damage to your roof.
- Your personal liability is covered if someone in your home is injured or their property is damaged.
- 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 the 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.
We recommend getting quotes from at least three insurance companies and comparing costs and coverage before buying 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, and 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.
