Michigan’s home insurance rates are a little under the national average – about 13% for 2018, and there are a lot of highly reputable companies for homeowners to choose from. The best choices for home insurance in the state are companies that offer real value to homeowners – which means more than just a low rate.
The Basics of Michigan Home Insurance
Unlike car insurance, home insurance is not mandated by any laws in Michigan. It is, however, a requirement for any homeowner that has a mortgage – which is most homeowners – as lenders require it as a part of the mortgage contract. Failure to carry this coverage results in the mortgage company taking out its own policy for which they will charge the homeowner. This type of policy protects only the mortgage company’s interests and provides no coverage to the owner.
Homeowners insurance consists of a few basics as well as several add-on options and endorsements. The main parts of any home insurance policy are dwelling coverage, liability, personal property coverage, and loss of use. These protect your house and everything in it, as well as protecting you from liability suits and paying for a place to live during a covered claim.
In addition to the basics, a home insurance policy can include a number of other coverages; in some cases, these may be a part of a standard policy, while in others they may be a la carte additions. Insurance companies create package policies that include a variety of coverage, but also allow those packages to be customized to meet the needs of each policyholder.
Among the options that can be added to a home policy are scheduled personal property riders for high-value items, identity theft protection, water and sewer backup, and equipment breakdown.
Specifics of Home Insurance in Michigan
Michigan home insurance policies are similar to those offered in other states, with no state-specific differences.
However, since Michigan does border the Great Lakes, there are many parts of the state where the proximity of water does increase the risk of flooding. Standard home insurance policies do not provide coverage for flooding. As a result, a separate flood policy can be purchased to protect a home against flood damage. In high-risk areas, this policy may be a requirement, while in other areas it is optional.
Our Process
In order to select the best picks for home insurance in Michigan, we looked at a few basic factors. These are rates, reputation, and coverage.
Rates are important and often the main concern for insurance shoppers but a low rate is only as good as the coverage it is buying. So, while we did select companies with competitive prices, we also looked at what they provide for the price. All of our top picks offer a comprehensive insurance policy for a good rate, with solid coverage that includes extra benefits. That means looking for things like extended replacement cost on the dwelling, replacement cost coverage on personal property, and endorsement packages.
We also looked for companies with a good reputation, because regardless of what you pay for insurance, it is not worth it if the company does not take care of you when there is a claim. We looked to trusted consumer ratings as well as customer review sites to find companies that have shown they are there for their policyholders.
We chose companies that cover the majority of Michigan homeowners, which means leaving out companies that have eligibility requirements. USAA is the biggest of these, providing coverage to military members and their families, and is a great choice for those that qualify. Our choices can cover Michigan residents in big cities as well as rural areas.
Our Top Picks
These three companies offer a combination of price, coverage, and reputation that makes them the best home insurance companies in Michigan.
State Farm is the most popular choice for home insurance nationwide, and they are also a top pick for Michigan. They have an excellent homeowner’s insurance package policy that provides comprehensive coverage with a lot of extras as standard inclusions.
They also have excellent rates for home insurance, which can be lowered even more with their variety of discounts. That includes a big auto insurance/home insurance bundling discount, which makes them a good pick for those looking to insure everything in one place.
Although home insurance rates vary depending on the location, Liberty Mutual is consistently one of the best-priced choices for homeowner’s insurance in Michigan. They also have an excellent home insurance package that offers a lot of coverage standard, which makes for a great value.
Liberty Mutual also has a solid reputation with customers for customer service, which checks off the third of our required boxes. They are also a great choice for bundling your coverage – with plenty of discounts available. They even partner with Geico to provide an auto/home discount to their auto insurance customers, giving you options.
Amica is not always the lowest priced option, but they are the top-rated home insurance company in the nation according to J.D. Power’s annual surveys, a title they have held for several years. They rank at the top for both overall service and for claims satisfaction.
They also have an excellent home insurance policy with plenty of added benefits as standard coverage, including extended replacement cost. They have also got one of the biggest auto/home discounts of any company out there, bringing their rates down a lot for those that choose to bundle.
Shopping for Home Insurance in Michigan
Michigan homeowners can choose from some of the top insurance companies in the nation and get great coverage at a great price, but since rates vary significantly from place to place, shopping around is still a must.
Understanding what you need for coverage is the first step to getting the right policy. Each insurance company will calculate a replacement cost amount for the home, and those numbers can be very different from each other. Going in with your own idea of what that coverage amount should be will help you to determine the right policy. Remember that replacement cost and market value are not the same thing; there are several calculators out there to help, and your mortgage company will also have a minimum amount of required coverage listed to help you.
You will also need to know what other coverage options you want to add and make sure that every quote you request includes those items. Some companies will include them as standard, while others will charge extra; the total rate with everything you want to be included is the one to compare.
While our top picks are all large companies, many smaller companies also offer a great value. It is worth checking in with a local independent agent to compare rates from local choices as well.
The Bottom Line
A little time spent shopping around can save Michigan homeowners a lot of money on their insurance while ensuring that their biggest investment is covered properly. With a lot of great insurance companies to choose from, finding the right insurance company for your needs at an affordable rate is just a matter of comparing all of your options.
For a list of companies that we recommend, visit our Best Insurance Companies page.
I am a former insurance agent and banker turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.
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