Michigan home insurance rates differ by $3,015 between the cheapest and most expensive companies
By: Hemanth Ramesh July, 12, 2019
Residents of Michigan pay an average homeowners insurance premium of $908 per annum, which is lower than the national average of $1,173. The average home insurance premium is the highest for citizens residing in Detroit at $3,923 per annum. The average cost of flood insurance in Michigan is $1,008 per annum.
Liberty Mutual offers the cheapest homeowners insurance rates in Detroit at $560, followed by State Farm whose premium is $1,783, higher than that offered by Liberty Mutual but much lower than the average homeowners premium in Detroit ($3,923).
Insurance firms generally offer discounts on insurance premiums based on factors likely to reduce loss. Data collected from Michigan’s Department of Financial and Insurance Services present examples of how homeowners can drastically reduce their average homeowner insurance premiums.
Homeowners can also reduce their premium amounts by choosing a higher deductible amount. This makes property owners a lower risk for insurance firms because they are less likely to claim minor damages.
Liberty Mutual offers the cheapest homeowners insurance rates in Detroit at $560, followed by State Farm whose premium is $1,783, higher than that offered by Liberty Mutual but much lower than the average homeowners premium in Detroit ($3,923).
State Farm is the largest insurance firm in Michigan with a market share of 17%. The insurance firm offers multiple discounts to help homeowners maintain low costs. Homeowners can save about 17% by bundling their auto insurance with their home insurance. Similar discounts are offered by Allstate. The savings percentage could change following an inspection of property.
Flint is the second most expensive city with citizens paying an average premium of $2,987 for homeowners insurance, followed by Dearborn at $2,423. Ann Arbor offers the cheapest premium in Michigan at an average of $756.
Michigan tends to have unpredictable weather and there are often reports of damage from wind and heavy snowfall. Even an unexpected cold front can result in high insurance claims. Homeowners can purchase multiple additional coverages. Under these additional coverages, insurance firms mentioned above guarantee that homeowners can claim a full replacement cost for a house, even if the amount is higher than the policy limit. Some of them are
Debris Removal: An additional 5% of the coverage limit could be made available for debris removal and related costs incurred from property damage
Tree Removal: A standard limit of $500 is generally available to cover the costs of removing damaged trees. Most companies stipulate that the tree should have fallen on or caused damage to another insured property.
Trees, Shrubs, and Other Plants: This covers the cost of replacing damaged trees, shrubs, or other plants at a standard limit of $500 generally imposed on each item up to an aggregate limit.
Fire Department Service Charge: Expenses to be paid to the fire department called to rescue or protect the property are covered at a standard limit of $500.
Ordinance and Law Coverage: Homeowners can avail additional coverage if the property is partially damaged or cannot be rebuilt to its original condition because of changes in the local building codes. The standard limit is about 10% of the total dwelling coverage amount.
Personal Property Endorsements: Homeowners are provided additional insurance for the full value of the property and items whose value exceeds the normal value listed in regular policies. Homeowners can buy this additional coverage to insure expensive items such as jewellery, laptops, paintings, and antiques. Most insurance firms appraise such items to determine their value at the time of purchase.
Water Backup and Sump Pump Overflow: This coverage protects homeowners against damages caused by water backup and sump pump overflow.
ABOUT THE AUTHOR
Hemanth Ramesh
Hemanth Ramesh works as a writer for Gavop. He has previously written content for film promotions, start-ups, advertising agencies and event management firms. Hemanth Ramesh completed his MA in Journalism and Mass Communication from The English and Foreign Languages University. His other passion includes script writing.
