Homeowners Insurance in Detroit, Michigan

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Homeowners Insurance in Detroit, Michigan

Detroit, Michigan, is a great Midwestern city for those who want to be surrounded by rich history and a vibrant culture of music and the arts. 

While the mild weather events, affordability, and proximity to nature draw many into the Great Lakes State, homeowners will still want to carry homeowners insurance to maintain their peace of mind. 

When it comes to home insurance, Detroit residents may find the market is full of viable options. Let’s see how you can find the right policy for your needs. 

How Much Is Homeowners Insurance in Detroit, Michigan?

On average, home insurance in Detroit costs about $2.892 annually, or about 28% higher than the average rate in Michigan of about $2,092 annually. 

A few factors cause home insurance in Detroit to be more expensive than the average rate in the state. Generally, insurers assess one’s risk of filing a claim when determining one’s premium. Those living in densely populated cities, cities with older homes, or cities with a history of severe weather events will generally pay higher-than-average premiums. 

Insurers may also use unique factors like one’s age, marital status, claims history, the home’s replacement cost, and credit history, among other factors, to determine premiums. 

On average, home insurance in Detroit tends to be costly due to Michigan’s harsh winters and the city’s higher-than-average rate of property crime. 

Check out the average home insurance rates in Detroit, Michigan, based on the amount of dwelling coverage. 

  • $1,928 for $200,000 in dwelling coverage
  • $2,892 for $300,000 in dwelling coverage
  • $3,856 for $400,000 in dwelling coverage

Home insurance in Detroit is more expensive than most other cities in Michigan. This above-average cost is partly due to the higher-than-average property crime rates in the city and partly because most homes in Motor City were built in the early to mid-20th century. 

Theft and vandalism can wreak havoc on a home, and older homes may suffer more frequent damage from mild perils than newly constructed homes. Thus, home insurance in Detroit can be quite costly, not to mention the unique factors insurers consider about each policyholder when determining their premiums. 

How to Get the Best Homeowners Insurance in Detroit

Finding the best homeowners insurance in Detroit starts with the policyholder understanding their needs and budget. Few people have the same policy because insurance is highly subjective based on an individual’s needs and values. 

For example, those who value coverage over cost may increase their coverage limits from the standard amount or add endorsements to tailor their coverage to their needs, regardless of the increase in cost. In contrast, others may carry the bare minimum amount of coverage that will get them through a disaster, or they may carry a high deductible to maintain a low premium. 

Let’s look at what policyholders should do to narrow their search so they can find the best home insurance policy in Detroit for their needs.

Customize Coverage

Each coverage type on a policy is customizable to a degree, allowing policyholders to increase or decrease individual coverages to suit the needs of their lifestyle. Your insurer will require your Coverage A (dwelling coverage) to cover at least 80% of your home’s replacement cost, but you may increase this coverage amount if you desire more. 

Policyholders will also customize their Coverage C (personal property coverage) based on the value of their items. For example, if the policyholder is a minimalist with few valuable possessions, they may opt for less personal property coverage than exists on the average home insurance policy.

Policyholders may also opt for additional, optional coverage add-ons to cover unprotected areas or items or to provide protection for specific perils that aren’t included in a standard policy. For example, policyholders can add:

Research Discounts

Whether you value cost over coverage or are just looking for a way to make your policy more affordable, the best way to do so is by tacking on a few discounts. Sure, you might be able to lower your coverage to save a few bucks, but those who don’t want to sacrifice coverage in the name of savings may stay within their budget by applying discounts to their policies. 

Discounts vary by insurer and based on the individual, so it’s best to contact your insurer or agent directly to see what discounts you may be eligible for. Many insurers offer discounts based on a policyholder’s characteristics, consumer habits, or elements of their home. 

For example, many insurers offer a discount for seniors, those who bundle multiple insurance products with the same insurer, or those who have specific safety and security devices installed in their homes. 

It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

How To Find Cheap Home Insurance Companies in Detroit

Cheap homeowners insurance in Detroit, Michigan, can be difficult to come by, but some companies offer rates below the state average. For example, the cheapest house insurance in Detroit from the insurers we examined comes from Auto-Owners, with an average premium of about $808 annually. 

Binding a policy with an insurer that offers rates below the state average is the best way to lower your premiums without sacrificing coverage. Those who value cost over coverage may also consider binding a policy with an insurer that offers plenty of stackable discounts that may lower premiums even further. 

Refer to the list below to discover the average annual premiums from eight home insurance companies in Detroit, arranged from the least expensive to the most.

Average Rates of Home Insurance Companies in Detroit
Company Average Annual Rate
Auto-Owners $808
AAA $1,551
USAA $1,753
State Farm $2,192
Allstate $2,319
Frankenmuth  $2,458
Hanover $4,505
Farmers $5,397
Average $2,892

It’s essential to remember that rates are subjective and will vary from person to person, policy to policy, and insurer to insurer. It’s always a good idea to compare rates, so your own individual characteristics may be considered. 

It’s also worth mentioning that Frankenmuth Insurance is a regional insurer headquartered in Frankenmuth, Michigan, serving only Michigan and Ohio. While most of the insurers on the list above are larger insurers with a nationwide presence, it’s important to gather quotes from national and regional insurers when searching for the right policy for your needs. Regional insurers may differ from national ones when it comes to underwriting, customer service, and the handling of claims

Is Home Insurance Required in Detroit?

No, Michigan state law doesn’t require any residents in the state to have a home insurance policy. However, a mortgage lender will require insurance on a home to take out a loan. Since mortgage lenders are financially invested in your home, an insurance policy would ensure they get their money back should your home endure damage from a covered peril.

While those with a mortgage may be required to have an insurance policy on their home, those who purchase their home outright or pay off their mortgage aren’t required to have a policy. However, a home insurance policy provides significant protection should disaster strike and can be the difference between financial stability and ruin. 

Detroit Homeowners Insurance Coverages

Property insurance in Detroit, like homeowners, renters, condo, or landlord insurance, generally has the same coverage as policies in other cities in the state. Every home insurance policy, regardless of city or state, typically has the same standard coverage types. These coverages are designed to offer each policyholder an expansive range of protection for their liability and property, as summarized below. 

Detroit Homeowners Insurance Coverages
Coverage Definition
Dwelling Coverage Dwelling coverage covers the attached structures of your home, including the walls, foundation, roof, and even built-in appliances if damaged by a covered peril.
Other Structures Coverage Other structures coverage offers protection for the detached structures on your property, like sheds, garages, or fences, if damaged by a covered peril. 
Personal Property Coverage Personal property coverage helps cover the cost of replacing your personal possessions, like furniture, clothing, or electronics if they’re damaged by a covered peril.
Loss of Use Coverage Loss of use coverage helps the policyholder pay for their living expenses should their home become inhospitable due to a covered peril. These expenses may include lodging and food, among others.
Liability Coverage Liability coverage protects the policyholder should a guest sustain an injury on their property or if the policyholder damages someone else’s property. It may cover expenses like medical bills or legal defense fees.
Medical Payments Coverage Medical payments coverage covers minor injuries someone may sustain on the policyholder’s property. It will only cover medical expenses. 
What to Know About Flood Insurance in Detroit

According to the FEMA flood zone map, homeowners in Detroit, Michigan, face a moderate risk of flooding as the city is located on a floodplain. Proximity to the Detroit River puts Detroiters at a moderate risk of flooding during heavy rain or snowfall. 

Since homeowners insurance doesn’t consider flooding a covered peril, knowing one’s flood risk and binding a flood insurance policy accordingly can be crucial when protecting your home and property. Flood insurance policies can come from a private insurer or the federal government through the National Flood Insurance Program (NFIP).

Stay Above Water With Flood Insurance

Do you want to pay for costly and common flood damage yourself or have an insurance policy pick up the tab?

Finding a Detroit Home Insurance Broker

When searching for a home insurance policy in Detroit, residents may find they have the choice to bind a policy through an insurance agent or broker. While both are insurance professionals, their roles differ, especially when it comes to their relationships with clients. Neither is better; it’s just a matter of personal preference. 

Insurance agents typically work for or with an insurance company. That means their loyalty rests with the company or companies they serve. An insurance broker, on the other hand, serves a client. An insurance broker in Detroit exists solely to help consumers find the right policy for their needs.

How to Get Home Insurance Quotes in Detroit, Michigan

The most crucial step in searching for the right policy is to gather home insurance quotes for Detroit. Getting and comparing quotes online is an excellent way to find all the policies and rates you’re eligible for so you can make the most informed decision for your lifestyle. 

Here at Clovered, we’re an independent agency that partners with many of the top insurers in Detroit and the state of Michigan. We even have a free, proprietary quoting tool you can use to get your unique quotes faster than a Michigander can point out Detroit using their hand as a map. Or, if you’d rather chat with a professional about your quote, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.

It's Time to Switch Your Homeowners Insurance

We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.

The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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