The Motor City offers a vibrant experience of culture, food, and music, but its relatively high rate of property crime makes Detroit an expensive city for homeowners insurance.
The average cost of homeowners insurance in Detroit is $2,327 per year or $194 a month. This is around 64% higher than the statewide average of $1,422 per year, and about 33% higher than the national average of $1,754. But despite Detroit’s higher-than-average rates, having a homeowners insurance policy is a necessity, and Policygenius can help you find the coverage you need at a price you can afford.
Compare the best cheap homeowners insurance companies in Detroit
Looking at the largest companies in Detroit by market share, Policygenius analyzed the latest rate data from Quadrant Information Services. We then looked at 2022 J.D. Power customer satisfaction scores and compared that with the coverage needs of Detroit residents to find the best homeowners insurance in Detroit.
To find the best cheap homeowners insurance in Detroit, Policygenius rated over a dozen of the largest insurance companies in Michigan across several categories, such as average policy cost, financial strength ratings with AM Best, customer and claims satisfaction scores with J.D. Power, available policy options, and more.
Company | Average monthly cost | Policygenius rating | |
|---|---|---|---|
$33 | 5.0 out of 5 | ||
$203 | 4.8 out of 5 | ||
$280 | 4.5 out of 5 | ||
$315 | 4.3 out of 5 | ||
$156 | 4.3 out of 5 |
2024 Policygenius award winner
Auto-Owners Insurance
5.0
Bundle home & auto
Offers extended replacement cost
Offers flood insurance
Why we chose it
Auto-Owners Insurance is one of the best homeowners insurance companies in Detroit thanks to wide range of coverage options, its high marks for financial strength, and its customer experience ratings.
Pros and cons
Pros
Offers a slew of extra coverage add-ons
Lots of discounts available
Flood insurance available through the NFIP
Cons
Not able to get quotes or file claims online
More details
Why we chose Auto-Owners Insurance
Auto-Owners Insurance has received above-average ratings on J.D. Power's Home Insurance Study, and it gets fewer complaints than average according to the National Association of Insurance Commissioners.
With endorsements like guaranteed replacement cost coverage, water backup protection, inland flood coverage, and a comprehensive Homeowners Plus endorsement package, Auto-Owners offers many ways to customize your policy.
How do Auto-Owners Insurance rates compare to the Detroit average?
The average cost of Auto-Owners home insurance in Detroit is $401 per year, which is 83% less expensive than the citywide average.
How to get a quote
To get a homeowners insurance quote, you’ll have to call a local Auto-Owners Insurance agent.
2024 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm is one of the best overall home insurance companies in Detroit due to its statewide availability, wide range of policy options for homes of all shapes and sizes, high marks for customer service, and its industry-best financial stability ratings.
Pros and cons
Pros
Save up to $1,127 per year when you bundle your home and auto insurance
Excellent line-up of policy add-ons, including extended replacement cost coverage
Cons
No longer sells home insurance policies in California
20% more complaints filed with the NAIC than other companies of its size
More details
Why we chose State Farm
State Farm is best known for its easy-to-reach and dependable customer service. And this goes for all steps of the the customer journey — from shopping and setting up your policy to making changes to your coverage to filing a claim.
What makes this possible is State Farm's extensive network of local agents who understand the weather risks and overall coverage needs of their community. Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How do State Farm home insurance rates compare to the Detroit average?
The average cost of State Farm home insurance in Detroit is $2,439 per year, which is about 5% more than the average annual premium in Detroit of $2,327.
How to get a quote
Online through State Farm or by contacting your local State Farm agent.
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
In addition to helping you save around 20% by bundling your home and car insurance, Farmers also gives you access to its extensive suite of discounts, policy credits, and incentives for not filing claims that can put even money back in your pocket.
Pros and cons
Pros
Optional extended or guaranteed replacement cost dwelling coverage
Receives few complaints from policyholders and has a high claims satisfaction score
Lots of available discounts
Cons
Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys
Rates are about average in Michigan
More details
Why we chose Farmers
Farmers home insurance stands out against competitors thanks to its 17 available discounts and policy perks. For context, Farmers competitors offer an average of around seven discounts total.
Along with several discount offerings and affordable rates, Farmers also offers the following two key policy perks:
Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.
Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.
Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to Farmers.
How do Farmers home insurance rates compare to the Detroit average?
The average cost of Farmers home insurance in Detroit is $3,362 per year, which is around 44% more expensive than the annual Deroit average of $2,327.
How to get a quote
Online through Policygenius or Farmers, or by contacting a local Farmers agent.
2024 Policygenius award winner
The Hanover
4.3
Bundle home & auto
Good student discount
Mobile app
New homebuyer discount
Why we chose it
The Hanover home insurance policies come with a slew of quality coverage add-ons and high customer service marks — though coverage from the Hanover can cost much more than average.
Pros and cons
Pros
Offers three tiers of coverage for all types of homes, including a specialized policy for high-value homes
Received 85% fewer complaints in 2021 according to the NAIC complaint index
Mobile app allows you to manage your policy, contact your agent, and report claims on the go
Cons
Rates are much higher than average in Michigan
No online quote tool or live-chat feature on its website
More details
Why we chose it
The Hanover is one of the best home insurance companies in Michigan, especially for buyers who value highly-rated customer service. According to the National Association of Insurance Commissioners, the Hanover receives only a fraction of the complaints expected for its size.
We also like the number of coverages that the Hanover offers. For example, homeowners can add protection to their basic policies, including guaranteed and extended replacement cost coverage, valuable items coverage, equipment breakdown coverage, and water backup protection.
How do the Hanover home insurance rates compare to the Deroit average?
The average cost of home insurance from the Hanover in Detroit is $3,785 per year, which is 63% more expensive than the statewide average.
How to get a quote
You can get a home insurance quote by contacting a local Hanover insurance agent.
2024 Policygenius award winner
AAA
4.3
New homebuyer discount
Mobile app
Bundle home & auto
All 50 states
Offers earthquake insurance
Offers flood insurance
Offers extended replacement cost
Why we chose it
AAA is among the best home insurance companies in Michigan for its cheap rates (and its range of discounts), coverage options, and membership extras offered by AAA.
Pros and cons
Pros
Affordable rates, plus 15+ home insurance discounts available
20+ policy coverages and add-ons
Slew of other perks and discounts that come with AAA membership
Cons
AAA membership required to purchase home insurance
Coverages, discounts, and claims experience will vary by region
Below-average customer satisfaction scores
More details
Why we chose it
AAA is one of the best homeowners insurance companies in Detroit. The company offers cheaper-than-average rates for Michigan homeowners, plus more than one dozen discounts (like a non-smoking discount, auto-pay discount, and paperless billing discount) that can lower your rates even more.
Besides low rates, AAA also offers a range of coverage options that you can add to a basic policy. AAA's add-ons include extended and guaranteed replacement cost coverage, water backup protection, and all of the perks that come with a AAA membership.
How do AAA home insurance rates compare to the Detroit average?
The average cost of AAA home insurance in Detroit is $1,874 per year, which is around 19% cheaper than the annual statewide average.
How to get a quote
Online or by calling AAA. Keep in mind that membership is required to get a home or auto insurance quote AAA.
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
How much is homeowners insurance in Detroit?
The average cost of home insurance in Detroit is $2,327 per year, or $194 a month, for a policy with $300,000 in dwelling coverage. This is around 64% higher than the average annual cost of $1,422 for homeowners insurance in Michigan, and about 33% higher than the national average.
Detroit home insurance rates by ZIP code
Home insurance rates can vary substantially depending on which ZIP code your home is located in, as homes in certain Detroit neighborhoods may be more prone to extreme weather damage or property crime than others.
To help you find out how much home insurance costs where you live, we calculated average home insurance rates by ZIP code in Detroit.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
48228 | $2,336 | 64% |
48235 | $2,293 | 61% |
48219 | $2,285 | 61% |
48221 | $2,285 | 61% |
48227 | $2,351 | 65% |
48224 | $2,443 | 72% |
48234 | $2,360 | 66% |
48205 | $2,382 | 68% |
48209 | $2,295 | 61% |
48210 | $2,316 | 63% |
Cheapest ZIP codes for home insurance in Detroit
With an average home insurance rate of $1,947 per year, the 48242 ZIP code is the most affordable area for home insurance in Detroit.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
48242 | $1,947 | 37% |
48239 | $2,023 | 42% |
48233 | $2,269 | 60% |
48216 | $2,270 | 60% |
48201 | $2,277 | 60% |
48221 | $2,285 | 61% |
48219 | $2,285 | 61% |
48217 | $2,287 | 61% |
48214 | $2,288 | 61% |
48235 | $2,293 | 61% |
Most expensive areas for homeowners insurance in Detroit
With an average annual premium of $2,531, the 48204 ZIP code is the most expensive ZIP code in Detroit for home insurance. If you live one of these ZIP codes, your rates might be among the highest in the city.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
48204 | $2,531 | 78% |
48238 | $2,505 | 76% |
48213 | $2,445 | 72% |
48224 | $2,443 | 72% |
48208 | $2,442 | 72% |
48207 | $2,432 | 71% |
48215 | $2,406 | 69% |
48203 | $2,404 | 69% |
48211 | $2,391 | 68% |
48205 | $2,382 | 68% |
Learn more >> Home insurance rates by ZIP code
Detroit home insurance costs by coverage amount
Along with your home's location, your homeowners insurance premiums are primarily based on how much dwelling coverage is in your policy. This is the centerpiece of your home insurance coverage, covering the cost to repair or rebuild your home after a covered disaster.
Here are the average rates for homeowners insurance based on coverage amount.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $1,088 |
$200,000 | $1,679 |
$300,000 | $2,327 |
$400,000 | $3,051 |
$500,000 | $3,674 |
Detroit home insurance costs by deductible amount
Your home insurance deductible is the amount you’re responsible for paying on each claim before insurance kicks in to help cover the cost of repairing or replacing your property. A higher deductible means lower insurance premiums, but it also means you're responsible for paying more out of pocket when you file a claim.
Here are the average rates for homeowners coverage by deductible amount.
Deductible | Average annual cost |
|---|---|
$500 | $460 |
$1,000 | $1,403 |
$2,000 | $2,305 |
Cheapest homeowners insurance companies in Detroit
Based on our analysis, Auto-Owners Insurance, Westfield Insurance, and Hastings Mutual Insurance are the three cheapest home insurance companies in Detroit, with average premiums citywide ranging from $401 to $1,748 per year.
Company | Average annual cost |
|---|---|
$401 | |
Westfield Insurance | $1,548 |
Hastings Mutual Insurance | $1,748 |
$1,870 | |
$1,874 | |
$2,324 | |
Frakenmuth Insurance | $2,420 |
$2,439 | |
$2,737 | |
Pioneer State Mutual | $3,104 |
$3,148 | |
$3,362 | |
$3,594 | |
$3,785 |
Cheapest home insurance in Detroit if you have poor credit
A bad credit score does more than just cost you a few dollars in late payment fees — it can also make your auto and home insurance rates thousands of dollars higher.
Here are the average rates for homeowners insurance for Detroit residents with poor credit.
Company | Average annual cost |
|---|---|
Hastings Mutual Insurance | $2,347 |
USAA | $2,545 |
Westfield Insurance | $2,909 |
Frakenmuth Insurance | $3,286 |
Pure Insurance | $3,337 |
AAA | $3,624 |
State Farm | $4,188 |
Pioneer State Mutual | $4,829 |
Cincinnati Insurance | $5,010 |
Progressive | $5,479 |
Auto-Owners Insurance | $6,896 |
Chubb | $7,289 |
The Hanover | $11,976 |
Farmers | $15,794 |
Cheapest home insurance in Detroit if you have an older home
Insurance carriers consider older homes to have a higher risk of damage or loss compared to newer homes since they're constructed with older and more difficult to replace materials. Additionally, certain structural components in older homes, like the roof or plumbing systems, may not be up to code.
Here are the average homeowners insurance rates for Detroit residents with older homes.
Company | Average annual cost |
|---|---|
Auto-Owners Insurance | $395 |
Hastings Mutual Insurance | $1,762 |
Westfield Insurance | $1,785 |
USAA | $1,972 |
AAA | $2,108 |
Pure Insurance | $2,323 |
State Farm | $2,448 |
Chubb | $2,457 |
Frakenmuth Insurance | $2,508 |
Cincinnati Insurance | $3,148 |
Pioneer State Mutual | $3,205 |
The Hanover | $3,682 |
Progressive | $3,682 |
Farmers | $5,594 |
Cheapest homeowners insurance in Detroit if you have a history of claims
Claims history is one of the biggest factors that insurance companies use when calculating your home insurance premiums. If you have multiple claims on your record, your insurer will likely view you as a risk for filing future claims and may charge you higher rates as a result.
Here's the cheapest home insurance companies in Detroit for a homeowner with three claims within a five-year period on their record.
Company | Average annual cost |
|---|---|
Auto-Owners Insurance | $407 |
Westfield Insurance | $2,144 |
Pure Insurance | $2,770 |
State Farm | $2,793 |
USAA | $2,905 |
Chubb | $2,985 |
Hastings Mutual Insurance | $3,485 |
AAA | $3,764 |
Cincinnati Insurance | $4,841 |
Progressive | $5,195 |
The Hanover | $5,639 |
Frakenmuth Insurance | $6,731 |
Farmers | $11,148 |
Pioneer State Mutual | $11,205 |
How to get homeowners insurance quotes in Detroit
Homeowners in Detroit should shop around for home insurance to ensure an adequate coverage and rate comparison. Since there are many factors that go into how much coverage you need as well as how your rate is determined, working with a Policygenius agent can help save you both time and money.
Here are some steps to follow when shopping for insurance:
Frequently asked questions
What is the average cost of homeowners insurance in Detroit?
The average cost of insurance in Detroit is $3,779 per year, which is 120% higher than the statewide average of $1,712 per year.
What is the best home insurance company in Detroit?
Auto-Owners Insurance offers the cheapest rates in Detroit and has a high J.D. Power score for customer satisfaction, but shopping around will help determine which company is best for you.
Why is home insurance more expensive in Detroit?
Detroit’s high crime rates contribute to the high home insurance costs in the city.
