Detroit, Michigan’s largest city, is home to more than 670,031 residents, with 47.2 per cent owning their homes. The decline in Detroit’s population over the past several years has made it one of the most shrinking cities. Along with this, the economy has also been experiencing a slump. The median property value of Detroit is $49,000 in 2019. This is a lot lower than the average of $1,312/year. Michigan’s location makes it vulnerable to severe winter storms. Homeowners insurance may be required. Nearly all the major insurance companies are located in this area. Our analysis of the best home insurers should help you choose the most affordable option.
Detroit’s best home insurance company
It can be difficult to choose from the many options available in this highly competitive insurance market. There are many home insurance companies in Detroit, but not all offer affordable home insurance. Bankrate compared five major home insurance companies in Detroit to find the best. They did this by comparing their market share, average annual premiums, and third-party ratings from J.D. Power. We also compared coverage options and discounts, accessibility, as well as overall customer service.
AAA
The American Automobile Association (AAA), which sells home insurance through various agencies across the country, requires you to be a member to qualify. Although this may seem like a problem for new customers it is an opportunity for those who are members to receive coverage for liability, personal property, and dwelling for an average $1,383 per year in Detroit.
Additional coverages include valuables, umbrella and earthquake insurance. You can receive discounts on a new home, safety equipment, weather-resistant roofs, and being covered for claims, depending on the auto club you belong to.
Allstate
Allstate home insurance in Detroit is more expensive at $2,951 annually. This long-standing company offers many additional features, in addition to the standard dwelling, liability, and personal property coverage. Water backup, identity theft protection and scheduled personal property, sporting equipment, and coverage for musical instruments are just a few of the features.
There are many savings options available, including discounts on paying the annual premium fully, bundling multiple insurance policies, buying new houses, being a long-term customer, and renovating your home with sustainable materials.
Auto-Owners
You can add Auto-Owners, which offers exceptional customer service and a wide range of coverage options to your list. The average home insurance policy in Detroit is only $326 per year, which covers $250,000 of dwelling coverage. Auto-Owners provides additional features beyond the standard features. These include guaranteed replacement cost, water backup and equipment breakdown insurance.
You can save even more by bundling your insurance policies. This will allow you to pay your entire annual premium and have no or very few claims. J.D. has consistently rated Auto-Owners as one of the best in the industry. Power studies.
State Farm
State Farm is more well-known for its auto insurance but it also offers decent home insurance policies at a cost of $1,834 annually in Detroit. There are options for coverage such as accident and weather damage protection, valuables coverage, and insurance for appliances or electronics. Although discounts are not available, customers can save money by upgrading their roofs, safety devices, or bundling auto and home insurance. State Farm is well-known for its extensive network of local agents that make it more personal.
USAA
USAA is a great choice for home insurance if you are a military member. It has excellent third-party scores and competitive rates. There are also perks available to retired or active members of the armed force. USAA is not included in J.D.’s official ranking because of membership restrictions. Power. The average standard policy costs $1,166 per year in Detroit. You can also add endorsements like home sharing, earthquake insurance, or valuable property coverage to the basic policy. USAA home insurance offers a variety of discounts, including policy bundling, home safety devices, and being completely free from claims.
Detroit home insurance options
Home insurance is not required by law, unlike auto insurance. It is up to the homeowner to choose what insurance they want. If you have a mortgage, you may be required to buy home insurance. You might also consider it because Detroit has weather hazards all year and insurance is often essential. The basic coverage is sufficient for most people, but the following options can provide greater security and peace of mind.
- Flood insurance: Although most standard home insurance policies don’t include flood coverage, it is possible to purchase this through the National Flood Insurance Program. Ask your insurance provider for more information about flood insurance policies available in your area.
- Water and sewer backup: Because plumbing damage can be costly and sudden, homeowners in Detroit should have water and sewer backup. Most insurance companies offer it.
- Loss of Use: In the event that your house is damaged or destroyed by a covered peril you can get loss of use insurance to help pay additional living expenses.
These coverages could be helpful to include in your Detroit home insurance policy. Detroit’s climate makes it susceptible to flooding, storms and icy winters. This can cause roof damage or burst pipes. Each optional coverage should be explained to you by your agent.
Detroit Home Insurance Discounts
It doesn’t matter how much you spend on home insurance, you can save money on your annual premiums. There are many discounts offered by Detroit home insurers that can reduce your insurance costs by several hundred dollars per year. Although some discounts might differ between companies, most discounts are available from all providers. These discounts include:
- Bundling policy: You can often get a discount if you combine your auto and home insurance policies with the same insurer.
- Safety devices: If you have fire alarms, burglar alarms or sprinklers in your home, you could get a discount.
- Higher deductible: You can save money by increasing your deductible until you are comfortable paying it when you file a claim.
- Paid in full: Insurance companies often offer a discount for paying your premium completely.
- Claims-free: It’s possible to save money by keeping a claimless record for at least three years.
Questions frequently asked
Which is the best company for home insurance?
Each person has different insurance needs and the major home insurers can meet them all. To compare the top-rated providers on the market, you can review home insurers and make your decision based upon coverage options, pricing, discounts, and customer service.
What is the cost of Detroit home insurance?
Home insurance for a $250,000 dwelling coverage costs on average $2,237 in Detroit. This is higher than the national average. The rate you choose can vary depending on your location and house size.
What amount of Detroit home insurance do you need?
Your home insurance policy should at least be able pay for the repair or rebuilding costs of your house in case it is damaged by a covered peril. This amount is calculated based on your property’s market value and the cost of rebuilding. This amount can be increased by adding personal property coverage. A good agent can help you select the right coverage for your budget.