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Edited by John Leach
Last Updated February 28, 2022
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Detroit, MI Homeowners Insurance
Detroit, Michigan, also known as “Motor City,” has a metropolitan population of over 4.3 million residents. Detroit is the largest city in Michigan as well as on the U.S.-Canada border. Many people regard Detroit as a multicultural center and a melting pot of Motown music, art, architecture, and design. Not only do people move to Detroit for its culture, but also for the affordability, friendly neighbors, and comfortable living. Many residents of the city choose to work in its most famous industry—auto manufacturing. That’s because Detroit has been known as the center of the auto industry since the early 1900s. It’s the original home to Ford Motor Company, Dodge, and Chrysler. Detroit ’s most significant sector even started labor unions that fought for better working conditions and wages. These unions even solidified the eight-hour workday and 40-hour workweek. Today, the city is the leader in “Big Three” manufacturers. General Motors, Ford, and Fiat Chrysler are the biggest in the game, and residents are proud to call Motor City home.
With the comfort and ease of living in Detroit come the harsh winters and hot and humid summers, influenced by the Great Lakes. In the winter, moderate snowfall and an average of 44 days below freezing make commuting to work and upkeep around the home difficult. And the 90°F summer days bring severe storms as well as flooding. This fluctuating climate means damage to homes may come at a cost. However, when you have the proper homeowners insurance in Detroit, it’s easier to keep up your property.
Cheapest Home Insurance Companies in Detroit
For homeowners in Detroit, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Comparing the right insurance companies will allow you to get the best possible insurance rate for your home.
To simplify comparing companies, Insurify has analyzed rates from top insurance providers in Detroit. The following are the best insurance rates from carriers that offer homeowners insurance in Detroit.
|Cincinnati Insurance Companies||$1,890|
How to Find Cheap Home Insurance in Detroit
If you’ve recently bought a home or are looking, you know that the Detroit housing market is somewhat competitive. Beating out many other prospective buyers means that you have made a precious investment. And as a homeowner, you need to protect your investment from risk. Thankfully, there are steps you can take to minimize the potential risk and protect your investment.
Start with Detroit homeowners insurance. Home insurance isn’t required by law, but your mortgage lender will likely require you to buy a policy. Your policy will work to provide financial liability for your property and personal belongings. Insurance will protect you financially against natural disasters, theft, and vandalism. Thankfully, there are different coverage options available. You can choose these coverage options to fit your property type, its location, and other factors.
From Ann Arbor to Flint, there is an affordable home insurance policy for you. Keep reading for a full guide on Detroit home insurance.
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Cheapest Home Insurance in Detroit by Company
Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in. Our free home insurance comparison tool allows you to find the best policy for the best rate fast. And your information stays private and protected.
As of 2021, the average home insurance premium in the Detroit area costs $2,141 annually, and the median home value is $43,296.
Detroit ’s cost of living is three percent lower than the national average. Even better, housing expenses in the Detroit area are six percent lower than the national average. As a Detroit area resident, you’re at a start with savings. Home insurance rates tend to vary, though. It all depends on the home insurance company. For example, you will pay a different home insurance rate with Nationwide than you will with Allstate or State Farm. See the best home insurance companies at the best rates by checking Insurify’s home insurance comparison tool. You’ll fill out your information, and then you’ll get quotes in a few minutes.
See the average cost of home insurance in Detroit, MI, below.
|Average Home Cost in Detroit||Average Annual Insurance Premium in Detroit|
Average Annual Home Insurance Premium in Detroit by Company
Average prices for standard homeowners insurance for a 7-15 year old home, $200,000 in coverage
Cheapest ZIP Codes in Detroit for Home Insurance
Home insurance rates in Detroit are unique to the place you live. You’re going to pay a different premium in Livonia than you would in Sterling heights.
Like property costs, home insurance varies in price from city to city. Pricing is determined by ZIP code–specific variables, such as the volume of claims filed nearby, crime rates, and property costs, and risk variables, such as natural disaster frequency. Even your specific neighborhood may determine if you pay more or less on your annual premiums.
Rates in Detroit can be relatively high or low compared to the national average; it all depends on which area you live in.
Home Insurance Coverage Types in Detroit
There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:
The simplest and least comprehensive type of homeowners insurance
Provides coverage for a handful of potential problems, including
- Dwelling coverage for damages from some natural disasters (storms, fires, wind, lightning, volcanic eruption),
- damage from vehicles,
- or civil commotion.
Broad form homeowners insurance policies include all basic form coverage, plus protection from:
- falling objects,
- damage from the weight of ice, snow, or sleet,
- freezing of household systems including HVAC and pipes,
- sudden and accidental damage to pipes and other household systems from artificially generated electrical current,
- accidental discharge or overflow of water or steam,
- sudden and accidental damage.
HO-2 policies typically cover both dwelling protection and personal property.
In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
The most common form of homeowners insurance is known as a “special form” policy.
While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes.
Tenant’s form policies typically cover all the same dangers as HO-2 policies.
These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house.
Some HO-4 policies may also include loss of use coverage for the tenants.
Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policy.
The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy).
HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.
Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies.
They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building.
These policies also include personal property and liability coverage and may include loss of use coverage.
If you own a mobile home or manufactured home, you likely have an HO-7 policy.
Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well.
HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them.
HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes.
Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.
For more detailed Michigan city level guides, check out these below.
Natural Disasters and Home Insurance Costs in Detroit
Living in Michigan means living near the Great Lakes. Those in Grand Rapids and Lansing will face snow and cold weather in the winter months and hot and humid weather in the summer months. Detroit is no different. The city is right next to Lake Erie and a short distance from Lake Huron. Natural disasters like severe storms, winter storms, tornadoes, and floods are typical in Detroit. Rain averages 34 inches in the warmer months, and snow averages about 42 inches per season, and 27 days of snow cover on average. And as a resident, it’s essential to be prepared for any weather event throughout the year. Your property is no exception. Rain and snow create damage to homes that can cost a significant amount of money. On a standard home insurance policy, structural damage as the result of snow and ice are covered. However, flooding is not covered. And since Detroit is at a higher risk of flooding, you likely need a separate flood insurance policy on your home. Talk to your local insurance agent to find out if flood insurance is right for you.
How to Get the Best Home Insurance Quotes in Detroit
Some tips come in handy when trying to get the lowest rates on Detroit homeowners insurance. First, homeowners insurance companies want you to bundle home and auto insurance. And home insurance companies show appreciation for buying multiple insurance policies. As a result, you’re likely to receive a discount or deal on insurance.
The best way to see coverage options with the best home insurance companies is to compare side by side. It only takes a few minutes, and before you know it, home insurance quotes are delivered straight to your email. Try it out now!
How to Find the Cheapest Home Insurance in Detroit
Motor City may be home to Motown hitmakers like The Temptations and The Supremes, but it is so much more. It’s a thriving cultural hotspot and full of friendly residents. Buying a home in Detroit means enjoying a comfortable way of life and low living expenses. But you must also protect your property with the right home insurance policy. The best and cheapest Detroit homeowners insurance is right under your nose.
Use Insurify’s home insurance comparison tools for your property in Detroit.
Frequently Asked Questions
USAA home insurance is available in Detroit. However, you must be a military member, a veteran, or a family member to purchase a home insurance policy with USAA.
Flood insurance is not included with Detroit homeowners insurance. The best way to get flood insurance is to purchase a separate policy. Talk to your insurance agent for more information and pricing.
It’s true that when you raise your deductible, your premium will lower. However, if you set your deductible too high, you could end up spending a lot of money in the event of a covered loss. Try to go with an affordable deductible just in case you have to file a claim.
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