Michigan Homeowner's Insurance

Standard Michigan Homeowners Insurance Coverage

The average home insurance premium in your state is around $715, and provides four primary types of coverage: Dwelling, other structures, personal property and loss of use. As the home owner, it is important that you understand what these coverages mean and that you become familiar with the perils facing your Michigan home. By doing so, you will be better able to get the specific coverages you need without spending money for coverages that have little or no impact on you at all.

Dwelling
AS the name implies, the dwelling portion of your homeowners insurance policy deals with the structure where you and your family live, and any buildings that are irremovably attached to it. Only the primary residence called the dwelling for these purposes, and other residential structures will either be covered under the other structures portion or must be insured separately.
Other Structures
Other structures are any constructions on the property, including such things as a dog house or chicken pen, which are not attached to the dwelling in such a way that they cannot be removed without causing severe damage to either building. A room that was added to the dwelling is not an "other structure" but a secluded apartment near the pool is.
Personal Property
Personal property is everything you own. This portion of the policy is notorious for falling short of providing coverage for all of your possessions because it is limited to a small percentage of the insurance policy value. If your personal property is worth more than the home insurance policy will cover, look into increasing the personal property limits or even purchasing a separate policy just for your personal effects.
Loss of Use
The loss of use portion of your policy protects you from expenses related to being unable to use some or the entire home. If you are not able to use the home because of a covered peril, save your receipts and document your expenses so that you can file a loss of use claim with the insurance company.

Average Michigan Homeowner Insurance Rates vs. US

Source: USCB

Cheaper Michigan Home Insurance

Cheaper home insurance means finding ways to earn discounts, not cutting back on important insurance coverage. Home security is one way to do it, but you can also reduce the risks presented by your home and your personal risks as well by staying involved and following some simple advice. Even though making your home safer may require some expenditure, the cost is far less than if you had to replace your belongings after a visit from a thief in the night.

Home Security
The crime rate in Michigan is 7.47 per 1000 people, but you can reduce the risks and get insurance discounts a few different ways. A fence around your property is a good way to both make your home more secure and to earn a discount on homeowners insurance. Another way is to have deadbolts installed in the doors leading into the house, and the best home security related discount is to have a professionally installed security system that is monitored around the clock by a company located off the premises.
Reduce Insurance Risks
Two vastly different but equally effective ways to reduce the risks associated with your house are to put a fence around your pool and to quit smoking. Fencing in the pool area will not only save money on insurance, it may be a requirement for pool owners in your area. And quitting smoking will net you a discount, not because it is helping you improve your health but because home fires are often caused by cigarettes and the insurance companies will reward you for not being an additional risk.
Credit Score and Insurance Risk
If your credit score is 688, you have an average credit score for Michigan. But you only need a credit score of 650 or better to get a credit related discount on your insurance. Also, monitor your credit score carefully to avoid becoming a victim of identity theft and to make sure that nothing shows up on your credit that isn't supposed to be there.

Home Characteristics Affecting Michigan Insurance Rates

With the average age of a home somewhere in the neighborhood of 41 years, you may find that age itself is the main characteristic you have to deal with. Take home maintenance to heart by trimming away dead and dying trees and their branches, keeping your roof free of leaves and other debris, and make sure that there is adequate drainage leading away from the home to prevent water damage and erosion from standing water.

Local Natural Disasters Michigan Homeowners Should Consider Protecting Against

Michigan is not well known for natural disasters, but it is subject to severe winter storms, hail, and flooding. The good news is that most of these things are covered by a standard homeowners policy, the bad news is that flooding, the most common mishap in Michigan, is not.

Earthquakes
Ranked at 36 out of 51, Michigan is not prone to movements of the earth. This is not to say that they cannot happen in Michigan but such events are extremely rare. Most of the damage caused by earthquakes is covered under a home insurance policy, such as fires and water damage, so you shouldn't need to worry about purchasing additional coverage to protect against this long-shot peril.
Flood
There were 76 claims filed in Michigan in 2009, while the nation filed 46,621 claims overall. Flooding is a danger in Michigan and one that is not covered on a standard home insurance policy. Check with your insurance company to find out if flood insurance can be added to your coverage, but the most likely scenario is that you will have to buy coverage from a high risk insurer, or even through FAIR or the Michigan equivalent of an insurance pool for high risk disasters.
Hail
Hail damage is a common problem and can break windows, damage roofs or even dent and disfigure metal siding. Unless your policy specifically excludes hail damage from coverage, you are protected against this unfortunate peril.
Hurricanes
Hurricanes are not common in Michigan, but severe winter storms are. In fact, you are more likely to need coverage for heavy snow than from a hurricane, and blizzard conditions can be every bit as dangerous.
Tornadoes
With only 19 tornadoes expected in an average year, Michigan has little to fear from tornadoes. And if your home should happen to be hit by one, the damage is classified as wind damage and covered under your standard policy unless it has been specifically excluded. You can find a list of exclusion by reading through your policy or contacting your insurance company.
Wildfires
Around 74,749 wildfires happen nationally every year, and Michigan always has a few. In most cases, your home is protected from fires, but read the policy carefully to make sure that wildfires have not been specifically excluded.