Having a comprehensive insurance policy is an absolute must for any homeowner, but finding the right policy isn’t always easy. Fortunately, Obrella takes the stress out of choosing a home insurance policy. Connect with friendly and knowledgeable insurance experts—whose familiarity with the nuances of Michigan home insurance policies makes it easy to find the best policy for you. They can help you sort through your options from several providers and customize your coverage depending on your needs.
Homeowners Insurance in Michigan
With an average home insurance premium of $802, the typical Michigan resident pays $232 less per year for homeowners insurance than most Americans do. That ranks Michigan as having the 15th lowest home insurance rates in the country.
- Median Home Value: 132,100
- Household Income: 52,005
- Percent of Income on Home Ownership: 27.50%
Affordable housing coupled with strong household incomes could be why Michigan has the 4th highest percentage of owner occupied housing in the nation. In fact, in the Wolverine State, the typical home value is $121,700, or $55,000 less than the national median of $176,700, yet the median income of $48,273 is only slightly less than the U.S. norm of $52,250. That means Michigan homeowners spend about $27.5% of their income on housing related expenses, which is 4% less than the country’s average of 31.6%, and ranks Michigan 33rd for the most affordable state for income to housing cost ratio. In Michigan, about 70 percent of houses are owner occupied, compared to the national average of 61.3%.
Lowering your Michigan homeowners insurance premium could reduce your home ownership expenses even more. Call [mapi-phone-link /] to compare your current policy to others on the market to find out if you can get a more competitively priced policy.
How are homeowners insurance premiums determined in Michigan?
Insurance companies look at a range of factors when determining the cost of your home insurance policy. They start with information about your home and your area, including local building costs, crime rates, the size of your home, and the year it was built. Premiums can also be affected by environmental factors, such as the likelihood of tornado, earthquake, or flood damage occurring in your region. A range of other factors can also impact your insurance premiums like your credit score or home add-ons such as a swimming pool, guest house, or private deck.
What can be deduced from these details? They all relate to risk. If your insurance provider determines that these factors make your home riskier to insure, you’re likely to wind up paying more for your homeowners insurance policy. You do have some control over these risks, however. Making your home more secure is a good start. Installing a complete home security system, for example, means your home is less likely to be burglarized, lowering the chance that your insurance company will have to replace stolen items. Even installing safety features like motion-sensitive lights and surveillance cameras can lower your risk and therefore your premium.
If you find that your homeowners insurance premium is still more expensive than you’d prefer, make sure to ask your provider about any homeowners insurance discounts they might offer. Many companies offer a bundling discount for those who purchase their auto insurance and homeowners insurance together, for instance. A bundling discount can significantly bring down your insurance costs.
What kinds of homeowners insurance policies are available in Michigan?
The majority of Michigan home insurance companies have multiple coverage options to pick between; here are a couple of those options:
- HO-1: Limited Coverage
- While an HO-1 policy will cover your home in the event of the first 10 classified disasters fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption this type of policy is no longer available for purchase in most states.
- HO-2: Basic Policy
- If any of the 16 classified disasters causes damage to your home, an HO-2 policy will give you basic protection.
- HO-3: Standard, most popular
- The standard policy offers the broadest home protection, with a few exceptions.
- HO-8: Older Home
- As your home ages, its market value may be less than the cost of major repairs. With an HO-8 policy, you’ll receive reimbursements for damage on an actual cash value basis, rather than the full cost of the repairs. Older homes may not qualify for policies that cover the full replacement cost of the home in the event of a total loss.
What is covered by standard Michigan homeowners insurance?
Homeowners policies usually dictate specific situations (often called “covered perils”) that grant you coverage for damages. If damages to your home result from a situation not explicitly covered in your policy, your provider usually won’t reimburse you. So, if your home is damaged in an earthquake, you’ll only be covered if your policy specifies that you have earthquake coverage. If you want to learn more about the coverages available, check out some of the standard coverage definitions below:
- Coverage A – Dwelling
- Covers damages to a home and any structures attached to the home. This includes damages to any of the home’s heating system, permanent air conditioning, wiring, or plumbing.
- Coverage B – Other Structures
- Other Structures coverage insures any structures that are not connected to the house, such as tool sheds, guest homes, free-standing garages, and fences.
- Coverage C – Personal Property
- Personal Property coverage reimburses homeowners for the value of damaged, lost, or stolen belongings, including furniture, clothing, computers, and TVs. This coverage even extends to items that were not lost, stolen, or damaged on the homeowner’s property such as items in a storage unit.
- Coverage D – Loss of Use
- Loss of Use coverage reimburses the homeowner for living expenses during home repairs.
- Coverage E – Personal Liability
- Personal Liability coverage provides financial protection in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
- Coverage F – Medical Payments to Others
- In the event that someone is hurt on your property or by your pet, this coverage will take care of any resulting medical bills.
Of course, you may need extra coverage if you have a high-value home, live in an area prone to natural disasters or property crimes, or keep expensive items in your home, like jewelry or musical instruments.
Where can you find additional Michigan insurance resources?
Department of Insurance and Financial Services: the agency to turn to if you have an insurance related question. In addition to telling you how to file a concern or complaint, the department also hosts outreach events that can help you better understand your insurance related needs. You can contact them at:
Shopping for home insurance can be intimidating. With all the different options to sort through, it can be difficult to decide on the best policy to keep your home protected. Fortunately, shopping for home insurance doesn’t have to be stressful when you use Obrella. Expert insurance agents are available over the phone to answer all of your home insurance questions. They’ll determine your coverage needs, help you review different policies, and discuss your options with you. They can even get your policy bound over the phone!
Give an insurance agent a call at [mapi-phone-link /] today! They’re ready to put their Michigan home insurance policy expertise to work to find the best homeowners insurance rates for you.