Homeowners insurance provides protection when bad things happen, but about 75 percent of homeowners don’t have adequate insurance. Our partners at ConsumerAffairs researched the best home insurance in Detroit to help you find the right coverage and ways to reduce its cost.
Homeowners insurance protects from asset loss in case of fire, natural disasters and burglary. Your coverage should be high enough to replace your home and its contents. A policy also protects you from lawsuits if someone is injured on your property.
There's nowhere in Michigan with higher homeowners insurance rates than Detroit. Yet, rates are reasonable because the Detroit area is highly unlikely to suffer from natural disasters that raise rates in states prone to tornadoes, wildfires and hurricanes.
A typical policy in Detroit with midline coverage on a home that's 1,300 square feet will cost around $118 per month, or $1,226 per year.
Average home insurance rates in Detroit
Palmer Woods - 48203
Woodbridge - 48208
East English Village - 48224
Corktown - 48216
Brush Park - 48201
Boston-Edison - 48206
Delray - 48209
Ferndale - 48220
Hamtramck - 48211
Sterling Heights - 48312
Livonia - 48150
Note: Based on dwelling amounts above with a constant $1,000 deductible and $100,000 liability.
The cost of your policy depends on the value of your home and your neighborhood. The value of houses in Detroit varies from $5,000 to more than $1 million, but the majority of homes range between $25,000 and $50,000. Therefore, home insurance prices in Detroit are usually lower than the prices listed above because home and coverage values are well below $200,000.
Other factors that affect the rate of homeowners insurance include year of construction, home security features, neighborhood crime statistics, previous claims filed, credit history and the deductible and coverage amount in the policy.
Discounts on home insurance in Detroit
While some of these factors are beyond your control, you can reduce the cost of your policy by taking the following actions:
Adding home security features
Increasing the amount of your deductible
Replacing your roof
Bundling with car insurance
Removing liabilities, such as trampolines and swimming pools
Policies usually cover the main dwelling, other structures on the property and your personal belongings when damages occur from specific perils, such as:
Fire and smoke
Windstorms and hail
Vandalism and malicious mischief
Damage from an aircraft or vehicle
The weight of ice, snow or sleet
Homeowners insurance doesn't cover flood damages, and unfortunately for those living in southeast Michigan, flooding and sewer backups are two common problems. If you want coverage for damages related to water, you'll need flood insurance and/or water backup and sump pump overflow insurance. FEMA is a great resource for more information on flood insurance.
Being the nation’s largest homeowners insurance provider has it perks, which include offering some of the lowest rates available and a budget to develop useful products. State Farm’s Home Inventory Tool is one of those products. It maintains an inventory of all your covered belongings and their value, which is helpful in deciding the right coverage amount for your home.
Allstate Insurance Agent: Shauna Johnson
You know an insurance agent is good when even customers who have a complaint are rating their overall experience positively. Shauna Johnson at Allstate is one of those agents. Customers love this agency’s Detroit location, comfortable atmosphere and friendly service.
State Farm Agent: Tony Massey
State Farm agent Tony Massey is a popular area provider. He uses his policy knowledge and personalized customer service to match customers with the right policy at one of State Farm’s low prices. He’s also active in the community and supports local charities.