Finding affordable homeowners insurance in Michigan takes a little time and research, but the effort is well worth it as it can save you hundreds of dollars per year. While homeowners insurance rates don’t tend to vary as wildly as car insurance rates, some carriers and policies represent more value and savings than others. At the same time, however, buying homeowners insurance is about more than getting a deal. The policy you’re purchasing is intended to protect one of your most valuable assets, so it is crucial to ensure that it is of the utmost quality, as well.
Which Insurance Companies Offer the Best Deals on Michigan Homeowners Insurance?
It would be nice if there was a simple, straightforward answer to this question. However, various factors come into play when determining homeowners insurance policy rates. Shopping around is an absolute must. By doing so, you may be able to save $1,000 or more per year on your premiums. Finding the time to collect quotes from multiple Michigan homeowners insurance agencies isn’t easy, but a great workaround is to work with an independent agency that offers products from multiple carriers. Visit the Independent Insurance Agents & Brokers of America website for a referral.
Which Factors Should I Consider When Assessing an Insurance Provider’s Reputation?
Don’t base your decision solely on which carrier offers the lowest rates. The company’s reputation is important, and the biggest factor is how well they handle claims. According to Consumer Reports, people who filed claims for less than $30,000 reported disagreements around 7% of the time. Those who filed claims exceeding $30,000 reported disagreements 18% of the time. Needless to say, the best carriers don’t give their customers the runaround when claims are filed. Therefore, seek carriers with reputations for being fair and easy to work with regarding claims.
Should I Check with My Car Insurance Provider?
Yes! This is one of the best ways to get a great deal on homeowners insurance in Michigan. Most insurance companies offer multi-line discounts, so it is in your best interests to check with your car insurance provider first. You may be able to save upwards of 30% on your homeowners insurance policy by pursuing this option.
How Will I Know If I Have Sufficient Coverage?
Getting a deal is great, but not if it’s at the expense of getting adequate coverage. Contrary to popular belief, the amount for which your home is insured isn’t based on its market value or taxable value. Rather, it’s based on its replacement cost, which includes the total cost of labor and materials to rebuild it. It is typically much higher than the market value, and it increases every year by about 5% or so. According to Consumer Reports, 61% of homes are underinsured due to improperly calculated replacement values. Therefore, when looking for a great deal on Michigan homeowners insurance, ask for a customized estimate of the replacement cost of your home. Make sure that it takes your home’s unique features into account.
What If I Have Big-Ticket Items?
Standard homeowners insurance policies cover basic, everyday items that can be expected to be found in a home. However, they don’t typically cover pricier items like jewelry, artwork, and furs. You usually need additional coverage for such items, which is typically referred to as endorsements or floaters. Prior to shopping for homeowners insurance, do a thorough home inventory. Apps and websites are available to make the process much easier, including KnowYourStuff.org, so put them to use to make the inventory go as smoothly as possible. Use what you discover to ensure that you get adequate coverage.
Are Discounts Available?
If you have auto insurance, you probably get discounts for things like being a safe driver and for parking your car in the garage. Discounts are usually available for homeowners insurance policies, so make sure that you get all of the discounts to which you are entitled. These may include discounts for having a home security system, smoke alarms, dead-bolt locks, and other security features.
What If My Home Is Located In a Flood Zone?
Happily, Michigan homeowners don’t have to worry about hurricanes, and tornadoes are pretty rare. However, many Michigan homes are located in flood zones, and homeowners insurance policies don’t cover flood damage. Going without flood damage coverage is a big mistake, so take that into account while looking for a great deal for homeowners insurance in Michigan.
What can I Do Now to Save More Later?
If you haven’t already purchased a home in Michigan, but plan to in the not-too-distant future, here are a few things that you can do to get a better deal:
- Buy a Strategically Placed Home – If you really want to get the lowest rates, buy a house that is served by a professional fire department as opposed to a voluntary one, as this typically results in lower homeowners insurance rates. If your new home is located by a hydrant, you will save even more. Ideally, buy a home with plumbing, electrical and heating systems that are 10 years old or newer. If you live in a windy area, buying a brick house could save you money too.
- Improve Your Credit – Your credit score affects the kinds of rates that you’ll qualify for when buying homeowners insurance. If your credit needs work, improve it before buying a home and looking for coverage.
- Obtain a CLUE Report – After finding a home that you want to buy, obtain its CLUE, or Comprehensive Loss Underwriting Exchange, report. This report will tell you the claims history for the property and could give you a head’s up about potential issues that you may face down the line.
Finally, remember to take your homeowners insurance rates into account when calculating the total cost of owning your home. If you will have a mortgage, the insurance is usually rolled into the payment along with the property taxes. By obtaining the best deal for homeowners insurance in Michigan, then, you will pay less to own your home.
2 Point Highlight
Shopping around is an absolute must. By doing so, you may be able to save $1,000 or more per year on your premiums.
Most insurance companies offer multi-line discounts, so it is in your best interests to check with your car insurance provider first.
