The Best and Cheapest Homeowners Insurance Companies in Michigan

The Best and Cheapest Homeowners Insurance Companies in Michigan

We collected thousands of quotes from over a dozen homeowners insurance providers in Michigan to find the best coverage for most Michiganders.

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The average cost of homeowners insurance in Michigan is $1,493 per year.

Along with affordability, we compared customer service reviews and ratings, as well as coverages and discounts.

On average, the best price we found for typical homeowners in the state was $750 per year. However, you should consider more than cost when deciding on home insurance providers. Below, read our selections for the best home insurance for most people in the Great Lake State.

Best for most people

Owners logo
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Best for bundling

AAA logo
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Best for online service

State Farm logo
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Best for high-value homes

Chubb logo
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Other recommendations:

Best for most people: Auto-Owners Insurance

Auto-Owners has very low home insurance rates in Michigan, with great customer service as well.
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The home insurance company we recommend for most people in Michigan is Auto-Owners insurance. We were impressed with the company's very affordable average annual rate of just $750, which is little more than half the statewide average of $1,493. Plus, the company has very well-regarded customer service — a 0.21 complaint index from the NAIC — as well as a nice variety of home insurance coverages and discounts.

The only potential downside to Auto-Owners insurance is that it's only available directly from an insurance agent. If there are no Auto-Owners agents near you, or if you prefer to buy and manage your insurance policy online, you may need to look at another company.

Best for bundling: Auto Club Insurance (AAA)

AAA has a lot of benefits for bundling your home and auto insurance policies together.
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Our runner-up choice for homeowners insurance in Michigan and our recommendation for car insurance bundling is Auto Club Insurance, which is affiliated with AAA Michigan. AAA offered a good price for homeowners insurance with a nice combination of coverages and discounts.

In order to buy homeowners insurance from Auto Club, you must be a member of AAA auto club, and the company offers its best rates and discounts if you carry both home and auto policies. As a result, we recommend that you only consider Auto Club if you're willing to get an auto policy and AAA motor club membership as well.

Best for online service: State Farm

State Farm has powerful online tools, so you can buy and manage your policy from anywhere.
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If you prefer to get quotes and manage your insurance policy online, we recommend State Farm. Though State Farm's rates were only about $120 less than the statewide average, it's the only competitive insurer that offers online quotes. For Michigan residents who live far from a local agent, online service may be a top priority.

State Farm is well-known for its dependability. It has an NAIC complaint index of 0.2, meaning that it receives only one-fifth as many complaints as a typical insurer of its size nationwide. Furthermore, the company has outstanding financial stability: A.M. Best rated it A++, which is the highest rating A.M. Best offers. This means that State Farm will likely be able to pay out your claim, even in situations of high claims demand (like a large storm) or economic downturn.

Best for high-value homes: Chubb

We like Chubb's coverages to protect exotic or high-end homes.
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Owners of high-value homes should take a good look at Chubb insurance for their homeowners policy. Chubb's typical rate of $1,237 is below the average cost we found statewide, but where Chubb really shines are its coverages and customer service. The company offers several coverages that appeal to people with a lot of assets, such as guaranteed replacement cost coverage and a cash out option: If your home is completely destroyed, you can opt to simply receive a check from Chubb for its value without being required to use the money to rebuild your home.

However, Chubb only caters to the higher end of the home insurance market. The company has a minimum coverage amount, meaning that you'll only be able to get a policy from them if you commit to purchasing a certain level of protection. Chubb doesn't publish this amount, but it's much higher than a typical homeowner would need in Michigan.

Best for military families: USAA

USAA has a great insurance offering that's exclusively for people tied to the military.
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If you or a family member are connected with the U.S. Military, USAA is an excellent home insurance option. For one, the company is an all-around solid insurer: affordable homeowners insurance rates (just $942 per year for our sample property), strong customer service and excellent financial stability.

But what really sets USAA apart for soldiers and their families are the military-specific coverages it offers. For example, USAA waives your homeowners insurance deductible on your uniform while you're on active duty. And while most home insurance companies don't cover your property in warzones, USAA does.

Besides insurance, USAA offers a wide range of well-regarded financial products, including checking and savings accounts, credit cards and loans. So people in the military may find USAA to be a convenient one-stop shop for their financial needs.

The main downside to USAA is that it's not open to everyone. The company only serves members of the U.S. Armed Forces and the families of current or former USAA members.

The cheapest options for homeowners insurance in Michigan

One of the most important factors when deciding on a homeowners insurance company is how much you'll pay. We collected over 10,000 quotes in Michigan and found that Auto-Owners offers the lowest rates statewide, with an average price of just $750 for our sample property — about half the typical price of $1,493. Auto-Owners also offered the absolute lowest rate in 84% of ZIP codes statewide.

Bar chart showing the prices of the most affordable home insurance options in Michigan
Average annual cost
Auto-Owners insurance logo
AAA logo
USAA logo
Frankenmuth insurance logo
Amica logo
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*USAA is only available to current and former military members and their families.

Auto Club/AAA and USAA were also very affordable options, with typical prices coming in below $1,000 per year.

The best-reviewed home insurance companies in Michigan

When selecting an insurance company, it's crucial to balance looking for the most affordable option with the company that has the best reviews. This way, you can be sure you'll receive quality service in exchange for your monthly insurance premium.

We look at two main metrics when analyzing a company's customer service ratings: a company's NAIC complaint index and its A.M. Best financial stability rating (FSR).

MI size rank
A.M. Best rating
NAIC complaint index (2018)
1State FarmA++0.2
2Auto-Owners InsuranceA++0.21
3Auto Club Insurance AssociationA-0.36
4Allstate CorpA+0.31
5The Hanover Insurance GroupA0.18
6Michigan Farm BureauA0.19
7Liberty MutualA0.53
8Farmers InsuranceA0.39
10Frankenmuth InsuranceA0

The NAIC complaint index is the how many of the complaints an insurance company has been the subject of, relative to the company's dollar amount of insurance premiums. The nationwide average is 1.0, so a company with a complaint index below 1.0 has fewer complaints than would be expected for a company of its size.

A.M. Best's financial stability rating is a holistic analysis of an insurance company's financial strength, considering its total amount of assets, operating procedures, financial safeguards and more. The highest grade offered is A++.

The most common homeowners insurance perils in Michigan

As a state in the upper midwest, the key regional insurance risks to Michigan and its homeowners are related to storms, and they can strike year-round. In the warmer months, rainstorms and tornadoes are common occurrences, whereas in winter, snowstorms and blizzards can cause significant damage.

Storm damage from wind

Wind damage to roofs, windows and home siding is one of the most common types of insurance claim made nationwide. Fortunately, damage from wind is almost always covered by homeowners insurance, no matter what type of policy you have. It's one of the 16 basic perils included on HO-1, HO-2 and HO-3 insurance policies.

In some places in the U.S., homeowners may have a separate wind deductible on their insurance policy. However, this is most common in coastal states where large-scale hurricane winds cause millions or billions of dollars of damage, not in Michigan.

Storm damage from weight of snow

Another common cause of damage from winter storms is the weight of snow on roofs. If snow causes your roof to collapse or get otherwise damaged, homeowners insurance will cover the damage. However, keep in mind that if your roof is leaky due to lack of maintenance and water gets into your home, insurance won't cover it.

Storm damage from flooding

One key type of storm damage is not covered by insurance: flood damage. If your home is flooded from a rainstorm or other major source of water, you unfortunately can't count on regular homeowners insurance to pay for the damage.

Michigan homeowners who are concerned about flooding (especially those who live in a high-risk flood area, such as low-lying areas near major lakes or rivers) should purchase a flood insurance policy to cover water damage. There are two main options for flood insurance: You can buy a policy backed by the federal government through the NFIP but sold through a private insurer, or you can buy a completely private policy from an insurance company.

Michigan insurance rates: City-by-city breakdown

In addition to a statewide analysis of every ZIP code in Michigan, we also did a city-specific analysis to see how much homeowners insurance costs in the major cities and townships of Michigan.

Average insurance cost
% difference from state average
Ann Arbor$1,016-32%
Battle Creek$1,240-17%
Bay City$1,196-20%
Canton Township$1,307-12%
Commerce Township$1,324-11%
Dearborn Heights$1,78019%
East Lansing$1,158-22%
Farmington Hills$1,374-8%
Show All Rows

For every city we looked at, we calculated the cost of homeowners insurance for every ZIP code in that city, then averaged the results. If you'd like to see how costs in Michigan compare to other parts of the U.S., you can find those numbers in our study of home insurance rates by state.


To do our comprehensive analysis of Michigan homeowners insurance, we collected quotes from 12 of the largest insurance companies in Michigan. From each company, we gathered a quote for one sample property for every residential ZIP code in Michigan. Our sample property was built in 1971 and had a dwelling coverage limit of $191,000.

Insurance companies included in our study

  • State Farm
  • Auto-Owners Insurance
  • Auto Club Insurance Association
  • Allstate Corp.
  • The Hanover Insurance Group
  • Michigan Farm Bureau
  • Farmers Insurance
  • USAA
  • Frankenmuth Insurance
  • Pioneer State Mutual
  • Chubb
  • The Cincinnati Insurance Cos.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

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.