Homeowners Insurance in Ann Arbor, Michigan (2024)

Whether you fell in love with the city after attending school at the University of Michigan or always admired its unique charm, when it comes to home insurance, Ann Arbor, Michigan, residents will want to ensure they have a policy that meets their needs and protects what’s most important.

Let’s check out all things property insurance Ann Arbor residents will want to know before binding a policy, like the average premium in the city, coverage details, and how to get the best homeowners insurance policy for your needs.

When it comes to home insurance, Ann Arbor residents can expect to pay about $1,415 annually in premiums, which is about 30% less than the state average of about $2,114.

When calculating the average cost of property insurance, Ann Arbor insurers consider a few facts about the city to determine rates. Typically, insurers will look at a city’s population, home replacement cost, and the median age of homes in the city. Similarly, the National Bureau of Economic Research found in a recent study that there is a strong relationship between premiums and local disaster risk. 

Insurers also consider individual characteristics when determining rates, as insurance is highly subjective based on the policyholder. When an insurer calculates premiums, they use certain factors to assess one’s risk of filing a claim. If an individual has characteristics that put them at an increased risk of filing a claim, they may see above-average premiums.

In Ann Arbor, insurers may use one’s marital status, age, claims history, home replacement cost, or credit history to determine premiums. 

The amount of dwelling coverage one carries on their policy will also directly correlate with the cost of one’s premiums. While Michigan doesn’t require homeowners to have a home insurance policy, those with mortgages must maintain a policy as a stipulation of the loan they sign with their lessor. Homeowners insurance helps a lessor ensure their investment in your home is protected. 

Generally, homeowners are only required to have dwelling coverage for 80% of their home replacement cost. Check out the average annual homeowners insurance premium based on dwelling coverage in Ann Arbor.

Insurers will also consider city crime rates and median home age when setting the average rate. While theft and other crime rates are low in Ann Arbor, the city boasts many charming, pre-war, older homes, which are often more expensive to insure. 

Policyholders should also consider their deductibles, as that can directly correlate with the cost of one’s premiums. Policies with a low deductible will have high premiums, and those with high deductibles will have lower premiums. 

When searching for home insurance in Ann Arbor, residents may find the premiums are still out of budget. Let’s explore how Ann Arborites can lower their premiums.

When searching for cheap homeowners insurance in Ann Arbor, homeowners will want to ensure their chosen insurer has base rates that fall within or below the average rate in the city. While home insurance is highly subjective based on the individual, it also varies from insurer to insurer.

Residents of the Michigan city have two choices when it comes to the type of insurer they bind a policy with: regional or national. A regional insurer will only serve homeowners in the state or a select few states in the region, while a national insurer will have a much broader customer base. They generally differ when it comes to the claims process, customer service, and how they handle underwriting. 

The next way a homeowner may lower their premiums is by seeking discounts. Generally, insurers offer discounts based on elements of one’s home, consumer habits, or the policyholder’s unique characteristics. Commonly, insurers will offer a discount for those with energy-efficient features in their home, those who bundle several insurance products, or those in certain occupations. 

When it comes to the best home insurance, Ann Arbor, Michigan residents will find the policy that suits them best may not be the best option for everyone. Insurance is highly subjective based on the individual, as it can be customized based on one’s lifestyle and personal preferences. 

While insurance is subjective and each policyholder’s needs are different, maintaining a policy can help provide you peace of mind in dark times. Nearly 7.4% of America’s population is uninsured, meaning these people must rely on their own savings should disaster strike. So, while needs may differ from person to person, it’s safe to assume everyone wants some degree of protection from accidents or unexpected disasters. 

To find the right policy for one’s needs, one must first decide what’s more valuable in that policy: cost or coverage. Those who value cost over coverage may select a bare-bones policy from an insurer that offers below-average base rates with plenty of discounts.

However, those who value coverage over cost may find the best policy for their needs is one from an insurer that offers plenty of optional, additional coverages that can be tacked onto their policy in addition to the standard coverages. 

For example, many insurers offer additional perils a homeowner may protect their home against or endorsements to insure specific, valuable items. Michiganders might add water backup coverage to their policies to combat the effects of water backing up through pipes and sump pumps, which is normally excluded from standard coverage.

Similarly, those with expensive jewelry or collections of valuable items might insure those items specifically with an endorsement, as jewelry, art, and other possible valuables are only covered in a limited fashion by default.

Those who value cost and coverage equally may find the best policy for their needs comes from an insurer that offers plenty of optional coverages on top of those included with a standard policy and boasts rates at or below the average cost of home insurance in Ann Arbor. 

Residents of Ann Arbor know the city is prone to flooding, as it is located along the Huron River and has many hills and valleys. The FEMA flood zone map indicates the city is at a moderate risk of flooding. 

It’s crucial to understand that flooding isn’t a named peril on any homeowners insurance policies, and those interested in protecting their homes and possessions during heavy rain or snowfall will consider binding a Michigan flood insurance policy. Those with flood insurance protect themselves from a world of financial burden when it comes to the aftermath of even an inch of flood water.

Homeowners can bind a flood insurance policy through the National Flood Insurance Program (NFIP), sponsored by the federal government, or a private insurer. 

When it comes to average home insurance, Ann Arbor residents and all other Americans can expect their policy to include a set of standard coverages. Policyholders can customize their coverage limits for these coverages, but each coverage will appear, in some capacity, on every policy. Policyholders may also add additional coverages if they wish. 

These coverages offer homeowners a range of protection when it comes to their liability and property. 

Dwelling coverage protects the structure of your home if a named peril on your policy damages it. Things like your roof, foundation, walls, and some built-in appliances will be protected by this coverage.

Other structures coverage protects the structures on your property that aren’t attached to your home if a named peril on your policy damages them. These may include garages, sheds, or fences, among other structures. 

Personal property coverage protects your personal items should they sustain damage from a named peril on your policy. Covered items may include furniture, appliances, or electronics, among other items.

Loss of use coverage provides compensation for the homeowner’s needs should their home become uninhabitable due to a named peril on their policy. Covered expenses may include food, temporary housing, and other basic necessities.

Liability coverage protects the policyholder should a guest injure themselves on the insured property or if the policyholder damages someone else’s property. This coverage may provide compensation for medical expenses or legal defense fees.

Medical payments coverage protects the policyholder if someone sustains a minor injury on the insured property. This coverage will only provide compensation for medical expenses. 

Whether you’re a first-time homeowner, new to Ann Arbor, or curious about the deal you might be missing out on in your area, when it comes to the hunt for property insurance, Ann Arbor residents should start by getting and comparing quotes online. Lucky for you, you’ve come to the right place for quotes.

Here at Clovered, we have a free quoting tool you can use to get quotes quicker than an Ann Arborite can say “Go Blue.”  If you’d rather chat with a professional about your quote, you can contact one of our licensed agents at 833-255-4117 or [email protected].