Best Homeowners Insurance in Michigan: Top 5 Insurance Companies to Protect Your Investment

Calling the Wolverine State home is an excellent thing, but if you're coming here for real estate investment, you won't be dealing with the beautiful weather only. In fact, you'll have to navigate the risks of being a landlord or property manager, including storms, floods, and more.

Choosing to protect your investment is crucial, and you'll need homeowners insurance in Michigan to do that. Typically, your mortgage company will require you to have it anyway.

There are many Michigan homeowners insurance companies, so it's challenging to know which one is the best. Do they offer affordable insurance premiums and adequate coverage? That's what this guide will help you answer. You'll learn the differences between home insurance and landlord insurance, how to choose a policy, and which companies are ideal.

Understanding Michigan Homeowners Insurance

You're protecting your investment in various ways, and having a homeowners insurance policy is one of them. In fact, it might be the first line of defense you have against damage.

Overall, home insurance coverage is the safety net against property damage. You'll likely need it, though you may also supplement with landlord insurance. Let's learn more.

Average Home Insurance Costs in Michigan

The average annual premiums you'll pay each year depend on various factors. However, dwelling coverage of $250,000 for Michigan homeowners insurance will cost about $1,527, which is slightly less than the national average. Likewise, neighboring states generally see lower prices.

Most people believe that homeowners insurance is higher because of the severe winters. The property is at an increased risk of damage from ice, snow, and sleet.

Still, the state doesn't see as many catastrophic weather conditions as other states. The summer storms are common, but you rarely see tornadoes. Likewise, there are fewer earthquakes here.

Homeowners Insurance vs. Landlord Insurance

Homeowners insurance in Michigan is great because it protects your personal belongings and the home's structure. However, it might not be enough as a landlord. Therefore, you may choose landlord insurance, which is tailored to your specific needs. It extends coverage to rental income loss and liability from accidents involving guests and tenants.

You're now navigating property management and its unique complexities. Therefore, you need the right insurance to protect you. Likewise, insurance policies generally have terms and conditions in place. You should discuss your home insurance needs with an insurance agent to get adequate coverage for your situation.

When is it wise to have a homeowners insurance policy? Here are a few scenarios to consider:

• Home Sharing - Sometimes, homeowners insurance policies offer home-sharing packages. You rent a portion of the residence to another. Be careful because this coverage might vary based on the company you choose, and you should get the specifics from the insurer.
• Transition Period - What happens if you've been living in the house and now want to rent it out? You can do this, but it might take time to convert the space into a rental. Therefore, keeping homeowners insurance can protect your financial interest.
• Temporary Absence - You're temporarily moving from the property for work or other purposes. Therefore, you rent it to another person to earn money. In this situation, homeowners insurance could be appropriate. However, you need adequate liability protection, so make sure your coverage package includes everything necessary.
• Vacant Property - Let's say you have a property you generally rent. However, it's now vacant. Homeowners insurance could protect your home and any personal property you keep there. You don't have to live there, but you should talk to the insurance agent, letting them know about the vacancy to ensure you have adequate coverage.

How to Choose a Michigan Homeowners Insurance Company

Is homeowners insurance required for Michigan homeowners and landlords? No. There's no law saying you must have it, but getting a homeowners insurance policy is likely beneficial.

What does typical homeowners insurance cover? A standard policy offers various coverage options, including:

• Dwelling coverage to handle costs for rebuilding, replacing, and repairing the house and attached structures
• Personal property coverage to protect appliances and furniture
• Other structures coverage to protect sheds, gazebos, driveways, and more
• Medical payments coverage to cover people injured by or on the property
• Liability coverage to help if someone gets injured or has property damaged because of you
• Loss of use coverage to cover meals and lodging expenses when the house is uninhabitable

Unique Michigan Homeowners Insurance Policy Needs

Michigan can see various unique issues, so as the landlord or property manager, you should consider these optional homeowners insurance policies or add-ons:

Flood Insurance

State law doesn't require you to have flood insurance. However, federal law says that if you're in a high-risk zone and have a mortgage, you will need it. Overall, it's wise to have a policy, even if you're not in a flood-prone area.

The National Flood Insurance Program can help you choose a policy that will meet your needs, but you can also get flood insurance from the private insurers listed below.

Identity Theft Protection

More and more personal information is available online, and it's easy for thieves to steal it and cause reputational and financial harm. Identity theft protection is often an add-on to traditional home insurance policies. In fact, there were 24,000 cases of identity theft in 2020 within Michigan.

Water Backup Coverage

Typically, this is an endorsement option and offers financial protection for damage caused by water backups in a drain or sewer line or when the sump pump fails. It's generally a common problem in crawl spaces and basements.

Other Factors to Consider When Assessing Michigan Homeowners Insurance Companies

When choosing homeowners insurance, here are some tips for making an informed choice:

• Your Needs - Make sure you know the coverage limits of the policy, how much coverage you need, and unique issues relating to your location.
• Research - Research the companies on this list and elsewhere, making sure to focus on each one's claims history, customer reviews, discounts, customer service, and more.
• Compare Options - Does the standard policy cover everything you need, or will you need an additional endorsement or rider?
• The Cost - Get quotes from at least three insurance companies to ensure you don't overpay for coverage.
• Get Recommendations - Ask friends and family members which company they use for a homeowners policy. Check them out first.
• Review Your Policy - Once you have a homeowners policy, make sure you read it for information on deductibles, limitations, and exclusions.

Best Home Insurance Companies in Michigan

Are you ready to find the best homeowners insurance company for your needs? Let's take a look at the top five:

1. Lemonade

If you like handling homeowners insurance digitally, Lemonade might be the best solution. You can file claims and apply for coverage online, and there are countless policies available. Plus, you could bundle home and auto policies, get identity theft protection, and much more. Let's learn all about it!

Coverage and Features

There are countless coverage options available when you choose Lemonade, and here are the standard ones:

• Dwelling coverage and other structures
• Medical payments
• Personal property
• Liability coverage
• Loss of use

This home insurance company also offers additional coverage, which you can pay for separately. It includes:

• Swimming pool coverage
• Extended reconstruction cost coverage, offering up to 50 percent more of the dwelling coverage for rebuilding purposes
• Extra coverage for jewelry, artwork, bicycles, cameras, and musical instruments
• Equipment breakdown to broaden the covered loss options to electrical power surges and mechanical breakdowns
• Buried utility, which pays $10,000 to replace/repair underground lines running from the property to the street (water, gas, electrical, water, power lines)
• Foundation water backup, which covers leaking, seeping, and cracking foundations
• Water backup, which protects sump pumps, pipes, and floor drains

Discounts

There are few discount opportunities available from Lemonade, but here are the three options:

• Bundling discount for pet, home, and/or auto insurance
• Annual payment plan discounts
• Protective device discounts (having burglar alarms, deadbolts, smoke alarms, etc.)

2. State Farm

You'll get basic homeowners insurance from State Farm, which includes liability and dwelling protection. However, it's easy to customize the policy with earthquake insurance and more. Let's dive in to learn all about it.

Coverage and Features

When you choose State Farm, you will receive these basic coverage options:

• Dwelling and other structures
• Medical payments
• Personal property
• Personal liability
• Additional living expenses (ALE)

There are optional add-ons to your home insurance, which include:

• Replacement cost coverage, which replaces items at the current market value instead of factoring in depreciation
• Identity restoration coverage, which covers expense reimbursement and case management services
• Cyber event and fraud loss coverage, which reimburses you up to $50,000 for restorative services
• Valuable possessions coverage, which insures more valuable items
• Inflation guard, which increases your dwelling coverage every year in conjunction with construction prices
• Ordinance or law coverage, which will bring your home up to code when repairing and rebuilding after a covered loss

Discounts

You can easily save money with the discounts available from State Farm. They include:

• Discount after updating home utilities
• Claims-free discount after going many years without a claim
• Discount after installing an automatic indoor fire sprinkler system
• Discount for installing impact-resistant roofing
• Discount for home monitoring systems (security, smoke, fire alarms)
• Multi-policy discounts

3. Allstate

Allstate offers various options, and it's one of the largest insurers in the United States. Your traditional Michigan homeowners insurance policy can be supplemented with flood insurance and much more. Let's find out all about it!

Coverage and Features

You'll get similar homeowners insurance options with Allstate as you would with others. It includes:

• Liability coverage
• Dwelling coverage
• Guest medical protection
• Personal property coverage

The additional coverages include:

• Green improvement reimbursement (replacing damaged items with energy-efficient ones)
• Musical instruments
• Electronic data recovery
• Sports equipment coverage
• Yard and garden coverage
• Water backup coverage
• Business property coverage
• Scheduled property, such as antiques, jewelry, and collections
• Identity theft restoration
• HostAdvantage for home-sharing situations
• Flood insurance
• Personal umbrella property, which offers more liability protection against lawsuits from guests and visitors

Discounts

You'll save money when you ask about these discounts from Allstate:

• Multi-policy discount when bundling home and auto insurance
• Automatic payments discount
• Protective device discount for alarm systems
• Claims-free discount
• Responsible payment discount
• Home buyer discount
• Loyalty and welcome discounts
• Early signing discount

4. Liberty Mutual

Liberty Mutual offers standard home insurance coverage options, and you can add optional features, including full replacement cost, which pays the actual cash value instead of the depreciated one.

If you want this brand for your Michigan homeowners insurance, it's wise to learn more about it below:

Coverage and Features

The standard homeowners insurance at Liberty Mutual includes:

• Personal property
• Additional living expenses (ALE)
• Dwelling and other structures
• Guest medical and liability coverage

However, this company also offers additional coverages, which can vary by state. The options include:

• Earthquake and flood insurance
• Replacement cost for your belongings, which pays the actual cash value instead of factoring in depreciation
• Personal property coverage, which covers the cost of collectibles and valuables otherwise not covered in your policy
• Umbrella coverage, which includes more liability protection
• Blanket jewelry coverage, which replaces stolen or lost jewelry with no up-front appraisals or deductibles
• Water backup coverage, which protects your belongings and home if a sewer/drain backs up or the sump pump fails
• Inflation protection, which adjusts coverage limits to stay in line with inflation
• Identity fraud protection, which covers expense reimbursements, attorney fees, and more

Discounts

Enjoy various discounts with this brand, keeping in mind that they might not all be available initially:

• Bundling discount when you have home and car insurance through this brand
• Newly purchased home discount for lower rates
• Claims-free discount
• Paperless policy discount
• Early shopper discount
• Safe homeowner program
• New roof discount
• Insured-to-value discount
• Preferred payment discount

5. Chubb

Chubb offers many coverage options, and its standard homeowners insurance policy includes more than most companies. For example, you'll be covered for free home appraisals, water backup, replacement cost, and lock replacement. Let's find out more!

Coverage and Features

Chubb's standard policy is called Masterpiece Homeowners Insurance. It covers the property, home, and belongings. You're protected against fire, theft, bad weather, vandalism, and smoke. It even includes personal liability and guest medical coverage. Plus, you're automatically covered for water backup issues.

There are various add-ons you can consider, as well. These include:

• Extra personal property coverage for jewelry, artwork, antiques, and more
• Flood coverage
• Earthquake coverage

Discounts

You will find discounts on home insurance through Chubb, but there aren't as many as other companies. Still, they include:

• Multi-policy discounts for bundling home and car insurance
• Backup generator discount with a permanently installed system
• Claims-free discount after being with the brand for three years and having no claims
• Discounts for home security systems, sprinkler systems, fire alarms, fire-resistant construction items, and more
• New and renovated home discounts

Other Notable Michigan Home Insurance Companies

It would be impossible to list all the companies that offer Michigan homeowners insurance. Therefore, you should research on your own, and here are a few other brands to focus on:

• Progressive
• Nationwide
• Amica
• USAA (only available to military service members and their families)
• The Hartford (through AARP)
• The Hanover
• Farmers Insurance Group

Conclusion

Living in the Great Lakes State means enjoying the water activities and all the rest it has to offer. However, you're also a landlord, so you're focused on protecting your home.

Choosing appropriate homeowners insurance in Michigan can be challenging, but the tips found here will help you navigate the insurance world. The goal is for you to secure your investment and get peace of mind.

It's important to tailor your insurance policy to meet your needs, and this could go beyond regular homeowners insurance. However, there are times when it's necessary, and you learned about them here.