When it comes to homeowners insurance in Michigan, homeowners can make the most of low premium rates. Home insurance premiums in Michigan are one of the lowest in the U.S. at just $908 per year, as compared to the national average of $1173. That’s almost a $300 difference. However, the premium rates do not remain so low all the time and do change depending on different factors such as a windy lakeshore, extreme winters, and ancient homes with compromised-quality construction. Homeowners insurance claims are common in Michigan.
The location of your home, the insurance provider, the size of your home, and many other factors come together to decide the premium rate. So, whether you’ve just bought a new home in Michigan or want to add coverage options to an existing policy, you should know everything about homeowners insurance in Michigan. You’ll need a home insurance policy that not only provides good coverage options but is also affordable. Here, in this post, we’ll list the top 5 homeowners insurance companies in Michigan, and discuss the pros and cons of each in a little detail. We’ll also guide you on some additional factors that you need to consider while narrowing down your choice to one of the companies we’ll be listing here.
Top 5 homeowners insurance providers in Michigan
Let’s look at the top 5 homeowners insurance companies in Michigan!
State Farm has a stellar reputation in the homeowners insurance market in the U.S., and they provide homeowners with some of the best coverage options. Their homeowners insurance policies cover damage from snow, freezing, sewer backup, and options critical to homeowners in Michigan.
This insurance is also one of the only two home insurance providers that provide an endorsement for building code upgrades. This is something that’s an important add-on for old homes. So, if your home gets damaged by an unforeseen accident, the endorsement will bear the repair expenses, and upgrade the building as per the local building codes.
When it comes to the company’s credentials, they’ve received an “A” rating from A.M. Best. They’ve also received 4 out of 5 stars from J.D. Power for overall customer satisfaction, affordable rates, fast claim handling, and so on. The company offers some great discounts on bundled insurances such as the auto and home insurance combo.
The competition between Allstate and State Farm to become the best homeowners insurance company in Michigan is neck to neck. However, Allstate has received a higher rating from A.M. Best, i.e., “A+” for great financial strength. The 3 out of 5 score received from J.D. Power is lower than State Farm’s score. When it comes to customer service, Allstate is a little behind State Farm. Nevertheless, there are lots of other things that draw potential home insurance buyers to the company.
The best thing about Allstate is their online resources that are highly informative and engaging. Allstate’s “learning center” is the perfect place for new homeowners and first-time buyers. From the premium pricing to coverage options; you’ll get all the insurance related information here. Their “common and costly” claims tool is also very helpful. You just need to enter your zip code, and the tool will tell you the type of coverage options you need based on the most common claim reasons in that particular area.
Like State Farm, Allstate also provides homeowners with incredible discounts and affordable premium options. You can save money by purchasing bundled insurance, installing fire alarms and burglar alarms, using home security systems, etc. The difference between the discounts offered by Allstate and State Farm is also large. For instance, Allstate offers almost 30% discount on bundled insurance as opposed to up to 17% discount offered by State Farm.
So, it can be a little difficult for you to pick the best option between these two homeowners insurance companies in Michigan.
Well, don’t go by the name; Auto Owner’s Insurance is a great choice for homeowners insurance in Michigan. The company has received outstanding ratings from the board. For instance, it has received an “A++” rating from A.M. Best for excellent financial stability, and a 4 out of 5 score from J.D. Power for customer satisfaction.
The best thing about this company is their claim processing unit. They’ve received an “excellent” rating from Consumer Reports for high claim satisfaction among customers. Many existing customers have mentioned in their online reviews that it’s very easy to contact an Auto Owner’s Insurance agent and get information. So, if the exceptional customer experience is all that matters to you, Auto Owner’s Insurance can be your ideal choice.
The only minus point about the company is their site. Their online presence is diminished, and they offer limited information about their homeowners insurance policies, coverage options, etc. Also, there’s no online tool to request a quote. Therefore, you have no option but to rely on insurance agents for all the information you need.
Auto Club Insurance
If you’re a Michigan AAA member, Auto Club Insurance can be a great pick. As a Michigan AAA member, you can save big on your premiums by bundling car and home insurance policies. The company also provides discounts for upgrades to electrical systems, plumbing systems, and roofs. So, if you have a renovation on your mind, you can get in touch with Auto Club Insurance for suitable homeowners insurance policies with affordable premium rates.
Coverage options provided by the company include hail, tornado, windstorm, frozen plumbing, etc. They’ve also received excellent ratings from A.M. Best for financial stability.
Even though Hanover is not as good as the other homeowners companies on the list, it is the fifth largest home insurance company in Michigan as per market share. They’ve received an “A” rating from A.M. Best for financial strength, but a pretty low score of 2 out of 5 for customer service from J.D. Power. This shows that customers are not very happy with the responsiveness of the agents.
Nevertheless, the company provides some incredible endorsement options. Customers are especially happy with Hanover’s replacement coverage insures homes for 125%-150% of their actual value. This can come in handy for older homes that may cost more to get reconstructed.
Additional Considerations Before You Commit to a Homeowners Insurance Carrier
So, you’ve identified the 5 top-rated homeowners insurance companies in Michigan, and checked the benefits of each. However, there are some additional factors that you should consider while choosing the best option. These include:
- Accidental/sudden water coverage - The unpredictable weather conditions in Michigan can take a toll on the properties. Issues as minor as sudden cold front can lead to critical insurance claims. You’ll be surprised to know that frozen pipes are the most commonly encountered reason for flooding inside the house. Most homeowners insurance typically do not cover these issues. So, make sure you get “accidental/sudden water” coverage added to your homeowners insurance policy.
- Septic system - If you have a septic tank inside your house in Michigan, make sure your homeowners insurance policy covers it. Michigan has seen some of the weakest septic systems in the last few years. Over 4200 septic tanks failed in 2015, and their average cost of replacement was $5000.
- Compare premium rates - Since there are 5 options on the list, make sure you compare the premium rates offered by each company before you take the final call.
If you’re currently evaluating your options for homeowners insurance on your next property in Michigan, a good first step is to connect with an experienced local real estate agent.
Agents can provide valuable guidance and advice on what kind of coverage you should be looking for, how much you’ll need given your property type and location, and make recommendations that can help you save on your monthly premium. They can also point you in the direction of quality insurance carriers and trustworthy local agencies or independent agents.
Fill out our online form to connect with a top-rated buyer's agent near you for a no-obligation, introductory call.