Michigan Home
Insurance
“The single best
suggestion that I can give to you as a consumer is to take the
time to shop around.”
Ken
Ross, Commissioner
Michigan Office of Financial and Insurance Regulation
Michigan home insurance can be expensive, but there are many
things one can do to make that cost as low as
possible. Insurance-Rates-Online  can help each step of the way. After all, isn't
it better to keep those dollars in your pocket instead of
paying them to a home
insurance company? Start saving now!
The
Basics of Michigan Home Insurance
Michigan places more regulations on home insurance companies
than most other states. Rates are regulated by state law so
that all companies are considered competitive.
The State of Michigan requires all home insurance companies
to offer a home insurance policy regardless of
where consumers live if the home is eligible for
coverage, so no one can say they don’t sell policies
in a specific neighborhood.
There are two types of policies – individual policies and
group policies. In an individual policy, rates are and
discounts are based solely upon the home. In group
policies, rates and discounts are based upon an additional
common factor such as membership in an association.
Michigan Home Insurance usually covers a specific list of
perils (things that can cause damage to the home or
property). This list includes:
- Dwelling – the actual
home
- Appurtenant Structures – other
structures on the property, like a detached
garage
- Contents – personal property like
furniture, clothes, appliances
- Additional Living Expenses –
if the home cannot be used while it is being
repaired, these funds help pay the additional
costs
- Liability – pays legal expenses
if homeowners are sued because someone was injured
on the property or by someone covered by the home
insurance policy
- Medical Payments – covers medical
expenses if someone who does not live there is
injured.
- Property of Others – pays for
replacement or repair of someone else’s property if it’s
damaged by the homeowner's property.
Additional Coverage Available Through Michigan
Homeowners Insurance Policies
Most Michigan home insurance policies are “Named Perils”
policies meaning they cover a specific list of risks. Usually
these are the most common types of risks, like fire, wind or
hail damage, vandalism, theft, etc.
Policies which protect dwellings from everything,
called “All Risk Coverage” policies, are available, but can be
much more expensive. Sometimes instead of buying this more
costly choice, consider simply adding an endorsement to a named
perils policy to get the additional coverage needed. Some of
the most popular endorsements are:
- Personal Property – normal
property limits may not be sufficient to repair or replace
items like fur, computers, coin collections, cameras,
etc.
- Backup of Sewers and Drains –
this isn’t normally included in policies, so if you live in
an area that’s prone to this occurrence, it’s a good idea
to buy this coverage.
- Ordinance and Law Coverage – pays
the difference to bring repairs up to current code if the
laws have changed since your home was built.
- Flood Insurance – This type of
insurance is only available through the National Flood Insurance Program,
which is offered by the Federal Government.
Factors
Affecting Michigan Home Insurance Rates
Most companies use the same factors in determining home
insurance rates, but each company weighs them differently.
Items which will affect the cost of premiums include:
- Home Construction – frame homes
are more expensive to insure than brick.
- Age of Home – newer homes are
less expensive
- Physical Condition of Home – has
the property been well maintained over the years?
- Geographic Area – if a home is
located in an area prone to flooding or tornadoes, it will
cost more to insure.
- Fire Protection Classification –
How close is the nearest fire station, and how good is that
fire station? Is there a fire hydrant nearby?
How to
Save Money on Home Insurance in Michigan
There are many ways to lower insurance premiums.
Virtually all home insurance companies in Michigan offer
discounts for a wide variety of things, so the smartest
thing to do is to ask about all possibilities. Here are
some discounts to ask about:
- Safety and Security Devices –
homes with a security system, smoke detectors, deadbolt
locks or fire extinguishers are eligible for lower
rates.
- Construction/Remodeling
Discount – by updating the heating,
electrical or plumbing systems in the home, or adding
fire resistant materials, rates should go down.
- Senior Discount – Folks over 55
frequently receive lower rates.
- Non-smoker Discount – Families
without smokers statistically have fewer claims, so their
rates are lower.
- Paid-In-Full Discount –
If there is no longer have a mortgage, this could
mean a discount on homeowners insurance rates.
For more ideas on saving money on home insurance, see
visit Home Insurance Shopping Tips.
Time to
Shop, Compare and Save
Now that you know the facts about Michigan Home Insurance,
it’s time to take the most important step towards lowering your
home insurance premiums – comparison shop. Fortunately this is
easy to do. Just enter your zip code in the box below, click
enter, and you’ll instantly be matched with top insurance
companies offering coverage in your area. Click on at least
three or four, and request a free quote. Soon you’ll find the
right insurance at the right price. It’s so easy! Why
wait? Enter your zip code now!
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