3 tips for shopping for home insurance in Michigan
When looking at how much each home insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
Before you buy homeowners insurance in Michigan, make sure you're protected against the state's severe weather and flooding.
Consider adding replacement cost coverage
You should be sure that your home is fully protected from the strong winds and occasional hail that can accompany spring and summer storms in Michigan.
While most home insurance policies do cover wind and hail damage (including tornado damage), you should make sure that you'll be able to fully rebuild your home by adding replacement cost coverage to your policy, which pays to replace your property without deducting the cost of depreciation.
Purchase flood insurance
If you live in a low-lying part of Michigan or a part of the state that's near one of the Great Lakes, your property might be at risk of experiencing flood damage. Despite the risk of flood damage, homeowners insurance policies don't cover flooding.
You should consider getting flood insurance if there's a chance your home could be damaged by rising water. A few companies offer flood insurance endorsements or even separate flood insurance policies, but most companies offer coverage through the National Flood Insurance Program (NFIP).
Learn more >> Flood insurance in Michigan: What you need to know
Look into specialty home insurance
Michigan residents who need specialty home insurance should make sure they have the right type of coverage for their needs. If you own a high-value home, a mobile or manufactured home, a vacation home, or rental home, you’ll need a home insurance policy that is specifically designed for your situation.
How to buy homeowners insurance in Michigan
While the cost of home insurance in Michigan is below the national average, shopping around when choosing a policy is still a great way to get the best price.
Here are a few steps to follow as you shop for homeowners insurance in Michigan:
1. Reach out to a licensed Policygenius insurance agent.
Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price. Our agents do this for free with no impact to your credit score.
2. Ask about the specific concerns you have.
Every situation is different, so if you have a swimming pool or certain dog breed deemed “dangerous” by insurance companies, make sure to mention this to your insurance agent to ensure you have the right coverage add-ons (aka endorsements) tacked on to your policy.
3. If you’re unable to find homeowners insurance on the private market, ask about E&S insurers.
Excess and surplus insurance is designed for homes that are considered too high risk for the standard market. This coverage tends to be more expensive than standard homeowners insurance and isn’t backed by the state, which means the company isn’t obligated to comply with insurance regulations in your state. This can be risky, but there are some situations where E&S insurance coverage may be your best option.
4. If you’re still struggling to find coverage, ask about your state’s FAIR Plan.
The Michigan FAIR Plan is designed to be a last resort coverage option for homeowners who are not able to secure insurance on the private market. Michigan’s FAIR plan strives to provide basic coverage and is intended to be used as a temporary solution until you qualify for coverage on the private market.
5. Figure out how low of a deductible you can afford.
You’ll want to set this to an amount you can afford to pay in the event you need to file a claim due to loss or damage. The higher your deductible, the lower your home insurance rates — and vice versa.
6. Compare quotes from a Policygenius agent.
Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent can walk you through your quotes to help you find the best policy for your coverage and budget needs.
7. Choose your policy, sign it, and pay your first premium.
After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you, including canceling your old policy, if you had one. The only thing left to do is sign and pay your first premium.
Why is it so hard to get homeowners insurance in Michigan?
One of the biggest factors in rising insurance costs and reduced availability of homeowners insurance is climate change. While other states are seeing changes in the homeowners insurance market due to floods and wildfires, Michigan has seen an increase in the severity of tornadoes and other natural disasters over the years, which is causing insurance costs to go up and availability to go down.
Inflation is also causing an increase in home insurance costs. The cost of labor and supplies to repair or replace a damaged home has gone up significantly over the last few years, which means insurers are more cautious about taking on new customers and charging higher rates in return.
What if I can’t find home insurance coverage in Michigan?
You have a few options to consider if you can’t find coverage in Michigan:
Use an insurance marketplace. Insurance marketplaces like Policygenius partner with dozens of home insurance companies, including E&S insurers that specialize in offering coverage to homeowners who were denied coverage on the private market. One of our licensed agents can help you compare quotes from different insurers to find one who is willing to offer you coverage.
Ask if you can make home renovations to mitigate risk. If your insurance company is still writing policies in your area, but their underwriting requirements are stricter, ask if there are improvements you can make to your home that will make you more insurable. This might mean installing fire-resistant roofing or wind-resistant storm shutters to better protect your home against extreme weather.
Talk to your neighbors. If you live in an area at high risk of storm damage, odds are your neighbors are also having trouble finding coverage. Ask around to see if anyone had success with a specific insurance company.
Apply for home insurance through the Michigan FAIR Plan. As a last resort, you’ll likely be able to get a policy through the Michigan FAIR Plan. While it offers less coverage and is more expensive than traditional policies, it’s a good stop-gap until you’re able to find coverage on the traditional market.
