As the largest city in Michigan, Detroit has more than 670,031 residents, 47.2% of whom own their homes. Detroit’s population has been in decline for several years, making it one of the fastest growing cities in the United States and at the same time the economy has also experienced a downturn. This is best evidenced by the median property value in Detroit, which was around $ 49,000 in 2019, far lower than in other major cities.
Home insurance in Detroit costs an average of $ 2,237 per year for home insurance coverage of $ 250,000, several times the national average of $ 1,312 per year. Michigan’s geographic location makes it vulnerable to storms and harsh winters, and home insurance may be required for coverage. Almost all of the major insurance companies are available in this city, and our analysis of the best home insurers should make it easy to choose the most affordable option.
Best Cheap Home Insurance Companies Detroit
Choosing in this crowded insurance market is often difficult. Detroit has no shortage of home insurers, but not all of them offer cheap home insurance. To find the top five home insurance companies offering cheap home insurance to residents of Detroit, Bankrate compared some of the city’s top insurers based on their market share, average annual premiums, and third-party ratings from JD. Power. We also compared coverage options, discounts, affordability, and overall customer service.
|Home insurance company||Average annual premium for home coverage of $ 250,000||JD Power Score|
|Car owners||$ 326||843/1000|
|State farm||$ 1,834||829/1000|
|* USAA||$ 1,166||* 889/1000|
* Due to membership eligibility restrictions, USAA is considered ineligible for rank by JD Power.
The American Automobile Association (AAA) sells home insurance through various agencies across the country, but you will need to be a member of an AAA automobile club to qualify. This can be an inconvenience for new customers, but those who are already members can get liability, home and personal property coverage for an average of $ 1,383 per year in Detroit.
Additional coverages include earthquake insurance, valuables, umbrella insurance, and additional living expenses. Depending on the auto club you are a member of, you may get discounts for a new home, safety features, a no-claims, weather-resistant roof.
Find out more: AAA Insurance Review
In Detroit, Allstate home insurance is on the more expensive side with an average of $ 2,951 per year. But this long-time company offers several additional features, in addition to the usual housing, liability and personal property coverage. Some of them are water safeguard, identity theft protection, personal property coverage, sports equipment and musical instruments.
There are also many savings options, including discounts for paying the annual premium in full, consolidating multiple policies, buying a new home, being a long-time customer, and renovating your home with durable materials.
Learn more: Allstate Insurance Review
For exceptional customer satisfaction and a variety of coverage options, consider adding car owners to your own list. Its home insurance policy is the cheapest in Detroit on average, at just $ 326 per year for $ 250,000 home coverage. In addition to the usual features, Auto-Owners offers add-ons such as guaranteed replacement cost, water and sewer backup, equipment failure, and device insurance.
To maximize savings, you can apply the discounts available to bundle insurance policies, pay your annual premium in full, and have no or few claims in your insurance history. Auto-Owners has one of the lowest complaint rates in the industry and has consistently performed well in JD Power studies.
Learn more: Auto Insurance Review
Although more popular for its auto insurance, State Farm also offers decent home insurance policies that cost around $ 1,834 per year in Detroit. Some coverages include accident and weather protection options, coverage for souvenirs and valuables, and insurance for home appliances and electronics. Discounts are limited, but customers could save money with an upgraded roof, safety features, or a home and auto insurance bundle. State Farm is widely recognized for its extensive network of local agents, who make service more personalized.
Read more: State Farm Insurance Review
If you are in the military, the USAA seems a natural choice for home insurance because of its excellent third party scores, competitive rates, and benefits available to serving and retired members of the military. However, due to membership restrictions USAA does not receive an official ranking from JD Power. A standard policy costs an average of $ 1,166 per year in Detroit, and you can add endorsements such as home-sharing coverage, earthquake insurance, or valuables coverage to your base policy. USAA home insurance also offers a number of discounts, including those for home security features, policy bundling, and being claims free.
Read more: USAA Insurance Review
Home insurance coverage options in Detroit
Unlike auto insurance, home insurance is not required by law and largely depends on the choice of the owner. Keep in mind that you will likely need to purchase home insurance if you have a mortgage. It may also be worth considering, as Detroit is a city that experiences weather hazards on a regular basis and owning a home here usually makes insurance a must. While basic coverage is often sufficient for most, the following additional options help provide additional peace of mind.
- Flood insurance: Most standard home insurance policies do not include flood insurance, but they can be purchased through the National Flood Insurance Program (NFIP). Consider asking your insurer for more information on flood insurance policies available in your area.
- Water and sewer renewal: Since plumbing damage can be sudden and expensive, water and sewer backup is often a recommended coverage for Detroit homeowners. It is generally available from most insurers.
- Loss of use: If your home becomes unliveable due to a covered peril, loss-of-use protection helps pay for additional living expenses while your home is being repaired or rebuilt.
All of these covers can be useful to add to your Detroit home insurance policy, as the city’s climate makes it vulnerable to storms, floods, and freezing winters that could damage the roof and burst pipes. Your insurance agent should be able to provide you with details of each optional coverage.
Home insurance discounts in Detroit
No matter how much you pay for home insurance, it might be worth saving money on annual premiums. Detroit home insurers offer various discounts that can reduce the cost of your insurance by a few hundred dollars per year, and while some discounts may differ from company to company, there are some that are generally available from most suppliers. These include:
- Policy bundle: There is usually a discount for combining your home insurance policy with auto insurance from the same insurer.
- Security Features: You might get a discount for installing fire and burglary alarms and sprinklers in your home.
- Higher deductible: By increasing your deductible to a comfortable amount that you pay when you make a claim before your insurer intervenes, you could save money.
- Fully Paid: Insurers usually offer a discount for paying your premium in full.
- Without complaint: You could save money by having a claim-free history of three years or more.
Frequently Asked Questions
What is the best home insurance company?
Everyone’s insurance needs are different, and the major home insurers are equipped to meet most needs. You can browse different home insurance companies to analyze some of the top rated providers on the market today and make your choice based on coverage options, prices and discounts, third party ratings and customer service. global.
How much does home insurance cost in Detroit?
For home coverage of $ 250,000, home insurance costs an average of $ 2,237 in Detroit, which is steeper. But the rate can be higher or lower depending on your exact location, the size of the house, and the blankets you choose.
How Much Home Insurance Do I Need in Detroit?
At the very least, your home insurance coverage should be able to pay for repairs and rebuilding of your home if it is damaged in a covered peril. This amount is based on the market value of your property and the cost of rebuilding it. Additional coverage for personal effects may be added to this amount. An insurance agent is usually the best person to help you choose the right coverage within your budget.
Bankrate uses Quadrant Information Services to analyze 2021 rates for all postal codes and carriers in all 50 states and Washington, DC Rates shown are based on 40 year old male and female owners with a claim history clean, good credit and the following coverage limits:
- Coverage A, housing: $ 250,000
- Cover B, other structures: $ 25,000
- Coverage C, Personal Property: $ 125,000
- Coverage D, loss of use: $ 50,000
- Cover E, civil liability: $ 300,000
- Cover F, medical payments: $ 1,000
The owners also have a $ 1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should only be used for comparison purposes. Your quotes will be different.