Homeowners Insurance in Novi, Michigan (2024)

Let’s dive into all things Novi home insurance, like how much it costs, what it covers, and how you can find the best policy for your needs. 

Novi home insurance costs, on average, about $1,642 annually, or about 20% below Michigan’s state average of about $2,114 annually. Below-average home insurance premiums are just one of many reasons why Oakland County ranks as the best county to live in in Michigan. 

While the average premium in this Michigan city is below the state average, it’s important to remember that premiums vary greatly based on the person, policy, insurer, and location. Insurers use several factors to determine premium costs, all of which paint a picture of a policyholder’s risk of filing a claim. One of the driving factors insurers use when determining premiums is your dwelling coverage limit. Let’s see how Novi’s average home insurance premium changes as the dwelling coverage limit is adjusted.

The average annual cost of homeowners insurance in Novi changes when the dwelling coverage limit is adjusted on a policy. On average, premiums differ by about $550 annually when dwelling coverage limits change by $100,000. 

Dwelling coverage is the part of your policy that helps protect the bones of your home, like the roof, walls, floors, doors, windows, HVAC system, all that fun stuff. If a covered peril on your policy were to damage any parts of your home covered by dwelling coverage, that’s the portion of your policy that would help pay to rebuild or replace it. This means that your policy would cover labor, material, and construction costs. 

The amount of dwelling coverage you have on your policy depends on the replacement cost of your home. Generally, the replacement cost of your home is determined by how much it would cost to rebuild your home by the square inch, so it’s typically a bit different than how much your home is worth or how much you bought it for. 

Plenty of pieces go into the puzzle of calculating your unique premiums. Insurers may use more factors than dwelling coverage above to get a clearer picture of who you are as a policyholder and what they can expect from you. If an insurer determines that a policyholder is at an above-average risk of filing a claim, they’ll likely charge a higher premium to compensate for that risk.

Some categories and factors insurers use to determine a policyholder’s risk of filing a claim include:

Whether you carry a home insurance policy for the peace of mind it provides or because you know it’s necessary for your financial stability, many want to ensure theirs is the best policy for their needs. Let’s check out how you can make sure your policy is meeting your needs.

The best home insurance in Michigan comes from companies like State Farm, AAA, and Frankenmuth, but it always differs from person to person. While these companies generally have below-average premiums and high customer satisfaction scores, some Novi residents may find the best policy for their needs elsewhere. 

To determine what you value most out of your policy, you’ll want to investigate what you value more: savings or coverage. Once you determine what you value most, you’ll be able to narrow down how to find the best policy for your needs. 

Finding a policy that values savings over coverage may be more of a straightforward search, as you’ll just need to compare quotes from several insurers and select the cheapest option. Finding a policy that values coverage over savings, however, may take a bit more searching.

To find the policy with the best coverage options, you’ll need to investigate insurers’ offerings when it comes to optional, additional coverages. Insurers offer what are known as endorsements that allow policyholders to insure additional items of high value, like collections or pieces of jewelry. Additionally, some insurers offer endorsements that allow policyholders to add additional perils to their policies, like water backup coverage, which can extend your policy to cover a water backup from your sewer or sump pump.

While home insurance isn’t required by law in Novi or anywhere else in Michigan, some residents may still be required to maintain a policy. Homeowners with an active mortgage are required by their mortgage lender to maintain a home insurance policy. 

Mortgage lenders require you to maintain a home insurance policy to protect the investment they’ve made in your home. If you fail to make payments on your home insurance policy or are dropped by your insurer, your mortgage lender may take out what’s known as a force-placed policy on your behalf. These policies serve the lender’s best interest in protecting your home, so they typically have high coverage limits and, in turn, high premiums.

As many residents are required by their mortgage lenders to maintain a Novi home insurance policy, it’s important to know what’s covered by your policy. Here are the standard coverages you’ll likely find on your policy and how they protect your property.

Novi isn’t a city with a major flood risk, but residents may want to be prepared for the worst anyway. While Novi isn’t close to any major bodies of water in Michigan, it’s known around the Great Lakes State that you’re never further than six miles away from a lake. Thus, such proximity to a body of water can increase your flood risk.

Sadly, flooding isn’t covered by a homeowners insurance policy. Instead, those who wish to get coverage for flood damage must bind a separate Michigan flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private insurer.

Finding the cheapest Novi home insurance is a personal journey, as policies differ greatly based on each person, home, policy, and insurer. However, there are some tricks of the trade you may be able to utilize to lower your premiums to a more manageable rate.

Deductibles and premiums go hand in hand. When you raise your deductible, your premium will go down. When you lower your deductible, your premium will go up. So, if you’re hoping to save some money on your policy, you can raise your deductible. Just know that with a higher deductible comes more money owed at the time of a claim, so make sure you have enough saved to pay your deductible should you ever need to.

      2. Apply discounts to your policy

Applying discounts to your policy is a great, risk-free way to manage your premium. Insurers offer many different discounts, which can sometimes be combined to maximize your savings. Things like personal characteristics or features of your home may qualify you for certain discounts. 

For example, insurers often offer a bundling discount for those who purchase multiple insurance products from the same insurer. Additionally, a popular discount these days is for those who have a home security system. Installing a doorbell camera could potentially help you save on your home insurance premiums. 

      3. Customize your coverage limits

The amount of coverage you have on your policy will directly correlate with your premiums. Obviously, more coverage is more expensive. So, if you’re committed to seeing how low your premiums can go, you may lower your coverages to the minimum limits required by your insurer. Just remember, should you file a claim, you’ll have to pay out-of-pocket for whatever your policy doesn’t cover.

Whether you’re moving to Novi to be in the best county in Michigan, to potentially have below-average homeowners insurance premiums, or for any other reason, you’ll definitely want to add “getting great homeowners insurance” to the top of your to-do list. 

Luckily, it’s easy these days, as the most efficient way to shop is from the comfort of your own computer, getting and comparing quotes online. Comparing quotes online can help you find agencies or companies that align with your values, so you can easily find the best policy for you. 

Now, don’t go anywhere else to get your quotes because we can help you with that right here. At Clovered, we have a free and easy quoting tool you can use to get your unique quotes in minutes. If you’d rather chat with a pro, we have those too! You can call 833-255-4117 or email [email protected] to chat with a licensed insurance agent about your homeowners insurance needs.