Detroit homeowners can qualify for lower home insurance rates. Here’s how!
By: Ramu Garuda September, 05, 2019
Homeowners in Detroit, Michigan, pay an average homeowner's insurance rate of $350 per annum according to a Gavop study. Detroit has one of the highest crime rates compared to other neighborhoods in America. The city reports about 2,640 robberies annually and over 30,609 crimes targeting properties. In fact, a resident of Detroit has a one in 15 chance of becoming a victim of either violent or property crime. Another possible reason for property crimes in Detroit is the low density of inhabitants, resulting in numerous vacant properties. Most of these neighborhoods are located in the northeast and the fringes of the city.
Generally, higher crime rates translate into higher insurance costs. However, in recent years, neighborhoods in the downtown areas of Detroit have seen a significant decline in crime rate. Indian Village, Palmer Woods, and North Rosedale Park have been identified as the safest neighborhoods to live in.
According to the year-end crime statistics, there were 268 murders in Detroit in 2018. Violent crime statistics significantly vary by neighborhood. with areas that are economically developed and with higher education levels tend to report lower crime rates compared to other neighborhoods of the city. For example, about 99% of the neighborhoods in Michigan have a lower crime rate than those in Detroit.
Forest Park has been identified as one of the most unsafe neighborhoods in Detroit to live in. The area annually reports about 7,002 property-based crimes and 14,045 thefts. In Forest Park, the typical home value and replacement values are $233,543 and $241,243.
Pleasant Ridge, on the other hand, is one of the safest neighborhoods in Detroit. Pleasant Ridge has the best education rate: more than 60% of the population has at least a bachelor’s or higher degree. The typical home value in this area is $295,900. Medical Center, West Side Industrial, and Elmwood Park have the lowest average home value at $19,800. Regent Park, on the other hand, reports the highest home values and replacement costs at $520,100 and $608,520.
A Gavop study reveals that enhancing safety features on properties can help Detroit homeowners lower their homeowner's insurance costs. Doing this will also make homeowners feel safer. For example, installing deadbolt locks can earn Detroit homeowners a discount of $49 on their homeowner's insurance. Burglar alarms (e.g., smart alarm sensors, indoor and outdoor cameras, smart locks, and sky control panel) fetch an additional discount of $118. Homes with fire extinguishers are given a discount of about $35.
ABOUT THE AUTHOR
Ramu Garuda
Ramu is a research analyst with over 9 years of analytics & research experience. Prior to joining the company, he worked with some of the prominent consulting and market research firms in India, including Pride Technology (Supporting consulting projects to PWC), RR Donnelly, and The Hackett Group. His skills include company profiling, benchmarking, data and trend analysis, industry analysis, and report writing across the industries. Ramu holds a Master’s degree in Finance and Marketing. He also has a bachelor’s degree in Biotechnology.
