Home insurance costs in Michigan 2021

Home insurance costs in Michigan

 

One of the most fascinating States of America is Michigan: not only is it an important holiday destination both for compatriots and foreigners, but it has so much to offer to its residents. Here you can find lots of educational institutions, including almost 120 universities and a multitude of jobs in nearly all sectors; there are big metros, like the loved or hated Detroit, and minor cities like Ann Arbor which witness high livability. You have nature in many expressions, so you can practice plenty of outdoor activities, that are good for your health. Consider also an overall affordable cost of living. If you are a new homeowner, a piece of the puzzle remains to have your best life here: preserving your finances, while making your home the safest possible, which is accomplished through a home insurance policy.

The State of Michigan is subject to the windstorms originating from the Atlantic Ocean, even it doesn’t’ faces seashores and shielded by the land. Weather is actually ever-changing, and some phenomenons can be quite extreme: tornadoes can form rapidly and cause considerable damages to houses, even to the point of destroying them. Floods are another incumbent peril for homeowners; ice and snow become a serious issue in the winter. The frequency and severity of these hazards do contribute to the size of the insurance premiums.

From our findings*, the average annual cost of a home insurance policy in Michigan is $1,326, which is roughly one hundred below the national average. You can have a more detailed reference looking at the below table: we obtained quotes from companies with the most market share, and the best ratings from three dedicated institutions: J.D. Power, AM Best, and Better Business Bureau. Plus, they have a relatively low number of complaints, as results from the NAIC (National Association of Insurance Commissioners) report. The companies in question are: Allstate, Amica, Chubb, Farmers, Liberty Mutual, Nationwide, Progressive, Statefarm, and USAA. Below you see home samples for ten of the main cities and towns of Michigan; premiums result from averaging quotes, so you can have a realistic expectation.

 

Deductible applied is $1,000, and liability coverage is $300,000. We have chosen the median home value with average square footage for each city, so you know for what you are getting those rates. All the houses are modern-style, that is to say, equipped with a minimum of three bedrooms and two bathrooms. Be also mindful that the value for which your home is insured is not the same as how much it is worth; rather, premiums refer to dwelling coverages, in fact, you must consider the cost to repair or rebuild it with the same standard construction materials, adjusted for the depreciation (actual cash value) or with newer (replacement cost value). Differences in premiums among cities reflect a varying risk, upon factors like proneness to natural hazards, crime, numbers of past claims, and age of houses, to mention the most important.

 

City Median home value Square ft Premium
Detroit
$135,000
1,535
$2,195
Grand Rapids
$170,000
1,470
$1,120
Warren
$140,000
1,100
$1,340
Sterling Heights.
$195,000
1,420
$1,170
Ann Arbor
$340,000
1,315
$1,490
Lansing
$100,000
1,300
$900
Flint
$40,000
1,450
$1,590
Dearborn
$150,000
1,670
$1,455
Livonia
$210,000
1,420
$1,300
Troy
$310,000
2,145
$1,040

 

 

 

Weather considerations in Michigan

Homeowners have to be aware of several perils that may involve their properties, and how their policies can cover a different kind of resulting damages.

Windstorms and tornadoes are recurrent phenomenons throughout the entire year; some of them are particularly intense. Fortunately, a standard policy covers every kind of wind-related event. Indeed, it will be only a matter of choosing a sufficient amount of coverage, the one necessary to finance the reconstructing of your house in the case of a loss.

Storms are also troublesome because they bring heavy rains like hail, which can be quite harmful to houses. The combination of wind plus hail damage windows and the roof, leaving you at the mercy of burdening losses. Hail is one of the named perils that are listed in the policy documentation, so you will be covered buying any common standard policy, like an H0-3.

Due to the large presence of watercourses, Michigan is subject to floodings, especially when copious rains fall, which can be anytime. Does your policy cover flood damage? If you live near any river, rather than in the big Detroit, you will need flood insurance, since a basic common policy isn’t typically designed for compensating flood damage. You can decide to buy flood coverage either from a private flood insurance company or through an insurer who participates in the National Flood Insurance Program (NFIP), a public supported the plan. The former option requires you to be careful about the financial strength of the insurer, to be sure it will be at your side in possible hard times, but generally, you will find a variety of offers and coverages. The NFIP choice may be the best for your condition if you seek the most trustworthiness: on the FEMA website, you can find informative resources, including a flood risk map, where you can identify your location, so to help with your decision.

The cost of flood insurance in Michigan varies a lot: it goes from as little as $217 up to $1,700 per year, depending on the actual risk. Houses in suburbs, residences that lie in a floodplain are obviously charged with higher premiums. On average, you can expect to pay around $700 for buying a policy from the NFIP, which isn’t done directly but always through your underwriting company.

Ice and snow are also a matter of concern in the cold Michiganian winters: the freezing of pipes inside houses is a common issue, and the floods deriving from leaking and bursting might be costly. Snow accumulation may compromise the roofs, even up to crashing the weaker and those unsuitable, with consequences you can imagine. All these perils are covered with a basic homeowners policy and demand your attention just for choosing an adequate amount of coverage, that is about not only the building but also your personal properties.

Wildfires are also a possibility in Michigan, not to be underestimated: fire coverage is ordinary for whatever policy you choose, but be absolutely sure that you are insured for a sum big enough to rebuild your home after an eventual disaster.

 

How can you get a cheaper policy in Michigan?

 
 

There are many factors determining your premium, several of which are under your control. Safety parameters that are intrinsic to your house are going to make some difference.

Reducing the chance to file a claim will do the trick, so insurers will calculate cheaper rates for you. How can you actually do this? Try to make your home more prepared, as they say in the insurance jargon, towards damages deriving from natural and human aggressions. Roof solidity is crucial: check if it has materials enough resistant against high winds, like tornadoes, hail, and weight of snow. Typically, a roof at least partially metal-made fulfills these characteristics; anchor systems might be considered if you live a higher tornadoes-prone area. Sometimes, it is enough to do by yourself, or just asking your real estate agent about the roof; otherwise, it might be worth to request a contractor appraisal.

Consider also reinforcing door and windows: this will be useful against windstorms, hail, and theft. You may also think of preventive measures against flooding: fill every possible gap for water infiltration, or add layers of water-repellant materials to exteriors (the FEMA can help to pay for such project, if you are eligible).

Once within your reach, and if necessary, retrofit obsolete components of your house, or refurbish it: that is especially true if the building is more than forty-years-old. Old materials are generally considered weaker, making your home more prone to damage; if you can renew here and there, insurers will have welcome it, which in turn means lower policy rates.

Install devices that protect you from property crime: at 2020, the State of Michigan results to have a lower than average risk, but thefts, burglaries, riots, and arson can be an issue in major cities, like the capital Detroit. Inquire, then decide if it’s worth purchasing alarms, cameras, a vault, and/or having special locks.

Avoid keeping potentially dangerous animals with you: liabilities are just around the corner, and expenses can become humungous to be compensated. Some companies don’t give policies at all, to such pet holders.

The financial factor also affects premiums: a clean credit history means good income and your assurance as a payer. A good credit score, that is to say between 670 and 739, speaks for it and will be optimal for getting relatively affordable rates for your policy. If you can do better, you can have access to discounts or other kinds of benefits, depending on the company; on the other hand, if you show a fair or poor credit, you can and should always try to improve it.

The way to go for new homeowners is following the general guidelines:

  • Shopping around, compare quotes until you find the one that best fits your necessities. You may want to prefer cheaper companies, or disposed to pay more for having more guarantees. When in doubt, you should aim for a better quality/price ratio.
  • Increase your deductible: this will come when you are next to sign the policy. If you select a higher amount of deductible, you are disposed to pay it out-of-pocket as part of the settlement process.
  • Bundle home and car insurance together: nearly all companies will come up with a special deal.
  • Staying loyal to your insurer can be a good investment over time if your experience was fine.

As the very first step, you can use our calculator to see how much is the annual premium for your location: get an idea of coverages with their proper amounts, and of how you can manipulate rates by choosing different deductibles. Then, you will be more ready to get quotes from the most established and reliable companies on the market.

* Methodology: we aggregated and averaged multiple quotes for every city of the State, assuming a 35 years old individual, married, with a good credit score. Our effort is to keep data always updated and the most accurate possible, so as to satisfy at best the consumer’s expectations.