Michigan Homeowners Insurance Guide
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Michigan Homeowners Insurance
Explore Michigan Homeowners Insurance State Guides, Laws and Regulations before You Buy Insurance
The Great Lakes State epitomizes beauty in the prairie land of the U.S. It boasts the most shoreline than any other state outside of Alaska. With all of the Great Lakes; Lake Superior, Lake Michigan, Lake Huron and Lake Erie, taking up real estate within Michigan, its not hard to see what makes the state so picturesque. The state is essentially split into half by Lake Michigan, leaving an Upper and Lower peninsula. The Upper being over 90% forested, while the lower portion being more city/commerce integrated.
Given Michigan’s mix of being located in the mainland of the U.S., as well as having several miles of shoreline, property owners in the Great Lakes State need to watch out for flooding, as well as tornadoes. This is in addition to the standard property insurance perils such as fire or theft.
What Does Homeowners and Renters Insurance Cover, and How Much Does it Cost?
Michiganders pay significantly less for homeowners insurance than the rest of the country, and about the country average for renters. This shows that although Michigan is surrounded by the Great Lakes and plains of the U.S., the risk of enduring catastrophic loss from flooding or a tornado are not significant. In fact, the risk of theft, fire or vandalism; all risks covered in a standard policy, seem to be greater, given the relative increase in rate for renters insurance versus homeowners.
Average Homeowners and Renters Insurance Premium
| State | Homeowners | Renters |
| Michigan | $942 | $182 |
| USA | $1,211 | $180 |
Source: Insurance Information Institute (2017)
That said, it’s still prudent to prepare for potential catastrophes. Besides, Michigan averages approximately 16 tornadoes per year. And although flooding perhaps will not be caused by a hurricane, given Michigan’s climate, it could be caused by ice jams or even dam failures.
Which Property Insurance Carrier Should I Choose?
Due to the relatively mild climate and low probability of catastrophic loss due to weather, Michiganders have several carriers to choose from for homeowners and renters insurance; both national and regional. Although the financial stability of a carrier should always be considered, in the case of the Great Lake State, less of an emphasis could be placed on this factor, given the probability of any carrier going bankrupt due to catastrophic losses, is low.
Top 5 Home Insurance Carriers in Michigan
| Company | Market Share |
| State Farm | 15.9% |
| Auto-Owners Insurance Co. | 15.0% |
| Auto Club Insurance Association Group | 14.1% |
| Hanover Insurance Group Inc. | 8.8% |
| Allstate Corp. | 8.2% |
Source: Insurance Information Institute (2019)
As a result, property owners in Michigan should consider property coverage packages from all carriers, as a standard property insurance policy should provide adequate coverage. The competition within the property insurance market is exemplified by the fact that the top three homeowners insurance carriers in the market are separated by under two percentage points. This competition, in addition to the inherent climate related characteristics of Michigan, are what help keep rates low for property owners.
Michigan’s natural beauty boasts vast prairies, an abundance of forests, and miles of shoreline from The Great Lakes. Its position in the heart of the U.S. insulates it from weather related catastrophic events such as hurricanes. As a result, Michiganders enjoy favorable property rates. Thus, if you own property in Michigan, make sure you compare coverage packages and make the carriers fight for your business.
Michigan Regulating Agencies And References
