The Best and Cheapest Home Insurance in Michigan (2026)
Find Cheap Home Insurance Quotes in Michigan
Who has the best cheap home insurance in MI?
What are the cheapest home insurance companies in Michigan?
Allstate has the cheapest home insurance in Michigan for most people.
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- Allstate's home insurance rates are 45% to 49% cheaper than the Michigan state average, depending on how much coverage you need. Allstate is also the cheapest option in Detroit, with rates around $1,985 per year, less than half the citywide average.
- But, State Farm has the cheapest rates for expensive homes. It charges an average of $2,793 per year for $1 million of dwelling coverage, which is 55% cheaper than the state average.
Cheap home insurance in Michigan
$200,000
$350,000
$500,000
$1 million
Key takeaways
- Allstate doesn't just have the cheapest rates for most people, it raised rates the least in Michigan over the past five years. During this time period, Allstate raised home insurance rates by just over 17%. That's significantly less than the statewide average of 40%.
- Auto-Owners is a great choice, but the company has had some of the highest rate increases in the state over the past five years, at nearly a 57% increase. That means it's even more important for people who choose Auto-Owners to shop around for home insurance quotes each year to make sure it's still the best choice for you.
- Fire causes the most damage to Michigan homes. This might partly be because the state has lots of older homes, which can increase the risk of electrical and heating-related fires.
Best for most people: Allstate
Pros & cons
- Cheapest rates for most people
- Lots of coverage options
- Numerous discounts
- Average customer service
Why is Allstate the best?
Allstate has the cheapest home insurance rates for most people in Michigan.
Whether you need $200,000, $350,000 or $500,000 of dwelling coverage, Allstate is the cheapest company, on average. And, while it's not the absolute cheapest option for people with expensive homes, Allstate still has very affordable rates if you need $1 million in dwelling coverage.
How much is Allstate insurance in Michigan?
Allstate also lets you personalize your coverage with a range of add-ons and discounts. Michigan homeowners might want to add water backup coverage, which pays for water damage in basements and crawl spaces when sump pumps fail or drains back up. You can also add coverage for your landscaping, musical instruments and sports equipment.
Additionally, Allstate offers one of the best discounts for bundling your home and auto insurance, with an average savings of around 27.5% off your home insurance quote. You can also save by being a new customer or buying a new or new-to-you house.
Potential issues
Allstate doesn't have great customer service. The company scored below-average on J.D. Power's customer satisfaction survey and its claims satisfaction survey. Poor service can be particularly hard to handle if you have to file a claim, when it might mean you have to wait longer to get your home repaired.
Compare home insurance rates in Detroit
Cheapest quotes for homeowners insurance in Detroit
Best for bundling: Auto-Owners
Pros & cons
- Quick and easy claims experience
- Lots of coverage add-ons and discounts
- Cheap auto rates in MI make it great for bundling
- Not the cheapest option before discounts
- No online quotes
Why is Auto-Owners the best?
Auto-Owners is an excellent choice if you prefer to bundle all of your insurance policies with one company.
Auto-Owners tends to have very affordable home insurance quotes in Michigan, along with some of the cheapest car insurance in the state.
Michigan homeowners have lots of opportunities to personalize their coverage with Auto-Owners.
For example, you can add mechanical breakdown insurance, which pays to fix or replace things like your furnace, water heater or electrical systems if they break due to mechanical failure or a power surge. This is especially helpful in Michigan, where cold winters can cause extra stress on heating systems.
Auto-Owners also has some of the best customer service in Michigan.
It scored 5th out of 16 top insurance companies on J.D. Power's claims satisfaction survey. And it only gets around one-third as many complaints as an average company its size. That means you can count on Auto-Owners to get your life back to normal quickly if something happens to your home.
Potential issues
The biggest downside to Auto-Owners is that you can't compare rates online. You'll have to contact a local, independent insurance agent to get a quote and buy a policy.
And, because Auto-Owners isn't the absolute cheapest option in Michigan, it may not be the best choice for very price-conscious homeowners.
Best for military families: USAA
Pros & cons
- Exceptional customer service
- Basic policy includes extra coverage
- Lots of coverage add-ons and discounts
- Not the cheapest rates in MI
- No local agents
- Only homeowners with military ties can buy a policy
Why is USAA the best?
USAA is a strong choice for Michigan homeowners with military ties because of its excellent customer service.
USAA earned the top score on both the J.D. Power customer satisfaction survey and claims satisfaction survey. And USAA only gets around one-quarter of the customer complaints expected for a company its size. So you can count on USAA to take great care of you in an emergency.
Additionally, USAA's basic policy includes coverage that most companies charge extra for. For example, USAA will pay to fully rebuild your home or replace your belongings, regardless of the condition they were in when damage occurred. This is called replacement cost coverage. In comparison, most policies consider wear and tear when calculating your insurance payout.
Replacement cost coverage can be especially helpful in Michigan after a severe thunderstorm. If wind or hail damage shingles on your roof, replacement cost coverage helps pay to replace those materials with new ones rather than reimbursing you for their current value.
Potential issues
And, while homeowners insurance from USAA costs an average of 6% less than the typical home insurance rate in Michigan, it's not the cheapest company in the state. However, it may be worth spending extra for the additional coverage USAA includes with its standard home insurance policy.
Top-rated homeowners insurance companies in Michigan
Auto-Owners and USAA have the best-rated homeowners insurance in Michigan.
Both companies have good customer service and affordable rates. But USAA is an option only for military members, veterans and their families.
How much is homeowners insurance in Michigan?
Michigan home insurance costs an average of $2,246 per year for a policy with $350,000 in dwelling coverage.
That's 6% less than the national average of $2,395 per year.
Michigan home insurance is cheaper than Indiana, where the same amount of coverage costs $2,639 per year. That's possibly because Indiana is more likely to experience severe summer storms, including tornadoes.
But home insurance is cheaper in Ohio, where a policy costs an average of $2,015 per year, and Wisconsin, where the average rate is $1,657 per year.
Cost of home insurance in Michigan by city
Detroit has the most expensive home insurance rates in Michigan, at $4,133 per year, on average.
In fact, of the 20 most-expensive cities in towns for home insurance in Michigan, only three are outside of the Detroit metro area. This is partially because Detroit has much higher property crime rates than the rest of Michigan.
Traverse City, a northern city along Lake Michigan, has the cheapest home insurance in the state, at $1,591 per year, on average.
Although Allstate is the cheapest company overall in Michigan, it only has the lowest rates in around one-eighth of cities across the state. Allstate tends to be the cheapest option in higher-risk urban areas, including Detroit, Bridgeport and Buena Vista.
Auto-Owners tends to have the lowest home insurance rates in smaller towns and rural areas across northern and western Michigan. It's the cheapest company in more than half of the cities and towns across the state.
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Average home insurance cost in Michigan by city
What home insurance coverage is important in Michigan?
Michigan's location in the Upper Midwest means it faces storms year-round. In summer, thunderstorms can bring wind and hail. And in winter, freezing temperatures and lake-effect snow are common. House fires also cause major damage to homes in Michigan each year. Understanding the ways your home can be damaged helps you ensure you get the home coverage you need.
Does homeowners insurance cover fires in Michigan?
Home insurance almost always covers damage caused by fires. This is important because fire and lightning cause more damage to homes in Michigan than any other hazard.
However, home insurance companies may deny a fire claim if they determine the damage was caused by negligence. Last year, the most common causes of fatal fires in Michigan were smoking, faulty electrical systems and heating equipment.
Because situations like these can sometimes be viewed as preventable, it’s important to take simple precautions where you can, such as keeping electrical systems up to date and safely disposing of cigarettes. Taking these steps can help reduce the risk of a fire and protect both your home and the people in it.
Does home insurance in Michigan cover wind?
Wind damage is almost always covered by home insurance, but it's a good idea to make sure. You might have a separate wind and hail deductible, and if you do, you should be aware of it and make sure you can afford to pay it if your home is damaged in a windstorm.
High winds were at least partially responsible for the sinking of the Edmund Fitzgerald in November 1975. The ship was caught in a storm on Lake Superior near Whitefish Point. Winds were blowing around 67 miles per hour and gusting up to 81 miles per hour, causing massive waves. And if Michigan's winds are strong enough to sink a ship, they're strong enough to damage houses.
Does Michigan home insurance cover snow damage?
Damage caused by the weight of ice or snow is covered on most home policies, and water damage caused by snow or ice is, too. Keep in mind, though, that home insurance won't pay if the damage is caused by a lack of maintenance. Before winter hits, have a professional check your roof and siding and make sure it's in good condition.
Snow can cause serious damage to Michigan homes. Snow and ice are heavy, especially if the snow formed over the Great Lakes. This is called "lake-effect snow," and it can be very wet, heavy and plentiful. The weight of the ice or snow could cause your roof to collapse. And sometimes, the snow on your roof melts but can't fully drain into your gutters if they're frozen over. This is called an ice dam, and it can cause water to leak back into your house.
Does home insurance in Michigan cover flooding?
Floods are common in many parts of Michigan, especially the southern part of the Lower Peninsula and the Upper Peninsula. But home insurance doesn't cover weather-related flood damage. If you want coverage for flooding, you need a separate flood insurance policy.
True floods happen when an area that's usually dry is covered in water. This can happen when it rains hard, lots of snow melts or a river or body of water jumps its banks.
But not all kinds of "flooding" are considered true floods. For example, your home insurance likely covers water damage caused by a washing machine overflowing and flooding your home.
And it's common in Michigan for basements to "flood" during heavy rains, but what's usually happening is called "water backup." Sump pumps, which usually keep extra water out of basements, can fail, and the water can back up into your basement. This kind of damage is covered, but only if you buy an add-on.
How to save on Michigan home insurance
The best way to save on home insurance in Michigan is to compare rates, take advantage of discounts and update your home.
Shop around for rates from multiple companies. Each company calculates home insurance rates differently, so shopping around can help you find the cheapest rate for the coverage you need.
For example, the most expensive company in Michigan, Pioneer State Mutual, costs three times more than the cheapest company, Allstate. That's an average savings of $214 per month.
Search for discounts. Bundling discounts are often some of the biggest savings you can get. Usually, this means buying your auto and home insurance from the same company. But you might also get a bundling discount for having an umbrella, boat, motorcycle or other insurance policy along with your home insurance.
You may also be able to save by paying your annual bill up front, signing up to make automatic payments or installing a monitored security system.
Maintain your home. One of the best ways to keep your home insurance rates down in the long term is to avoid filing claims. While you can't avoid all home damage, you can make it less likely by properly maintaining your home. Check your roof, siding, windows and doors for damage, and make repairs when you need to.
You may also save money by updating your roof. Your home's roof is the first line of defense against rain, wind, hail and snow. New roofs are less likely to be damaged, so home insurance companies usually give you a discount. If your roof is 15 years old or has recently had damage, have a professional look at it. It might be fine, but it might be time for a new one.
Change in Michigan home insurance costs
Home insurance prices are up by nearly 35% in Michigan over the last five years.
Michigan homeowners saw a big jump in their home insurance prices in 2023 and 2024, with an increase of 11.59% both years. However, home insurance rates seem to be stabilizing, with a lower increase of 7.45% in 2025.
Michigan home insurance rate increases, 2021-2025
Chubb and Allstate had the smallest increases among major companies in Michigan, at around 12% and 17% over the last five years, respectively.
The Hanover had the biggest rate increase over the five-year period, with a jump of nearly 59%. It was followed by American Family and Auto-Owners, both of which raised rates by around 57%.
Frequently asked questions
What is the cheapest home insurance in Michigan?
Allstate has the cheapest home insurance in Michigan, at several levels of coverage. But Allstate doesn't have the best customer service. Auto-Owners, AAA and Westfield all have cheaper-than-average rates and better service than Allstate.
What is the average homeowners insurance rate in Michigan?
Home insurance in Michigan costs an average of $2,246 per year for a policy with $350,000 in dwelling coverage. If you need less coverage, your rates will be cheaper. Your rates also depend on where you live and how many claims you've filed in the past.
What is the best insurance company in Michigan?
Auto-Owners and USAA are the best home insurance companies in Michigan, based on their customer service reviews and affordable rates. But the best company for you depends on your budget, where you live, the type of coverage you need and what you are looking for in a policy. Someone who wants the cheapest rates might choose Allstate, while someone with an expensive home may find better rates with State Farm.
Methodology
To find the best and cheapest home insurance companies in Michigan, ValuePenguin got quotes from the state's largest home insurance companies in hundreds of ZIP codes. Quotes are for a 45-year-old married man with no home insurance claims who owns a 1,726 square foot home built 52 years ago, based on the average home age and size in Michigan.
Our experts used the following coverage limits:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
ValuePenguin used Quadrant Information Services, which in turn uses publicly available insurance company filings, to get the quotes. Rates will vary based on your age, home details, location, claim history and more. Your rates will likely be different from the rates shown here.
To choose the best home insurance companies in Michigan, ValuePenguin used average rates, coverages, discounts, customer complaint data from the National Association of Insurance Commissioners (NAIC), scores from J.D. Power's home insurance customer satisfaction survey and our experts' own editorial reviews and ratings.
Sources:
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
