Best Homeowners Insurance in Detroit, MI

Allstate has the best homeowners insurance in Detroit for cheap coverage. Auto Club offers the best customer service.

See Your Rates

Key Takeaways

  • Allstate is the cheapest provider in Detroit, charging $1,644 a year, on average.
  • Detroit’s average home insurance cost is $3,915 a year — almost double the statewide average of $2,017.
  • Auto Club is another affordable provider, charging an average $2,082 a year.

In this article

Average home insurance rates in Detroit

The average home insurance rate in Detroit is $3,915 a year, or $326 a month.

Statewide, homeowners pay an average of $2,017 a year — or $158 less per month.

Several factors can affect your annual home insurance premiums, including:

  • Your home’s location.
  • Your home’s age and construction style.
  • Your insurance claim history.
  • The cost of rebuilding your home.

Your coverage costs will also vary based on your home insurance deductible amount and how much dwelling coverage you need. Usually, a smaller deductible will result in higher premiums:

Deductible Annual premium
$500 $4,190
$1,000 $3,915
$1,500 $3,747
$2,000 $3,598
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

And, as the chart below shows, homeowners who need more dwelling coverage will typically pay more:

Dwelling coverage amount Annual premium
$200,000 $3,126
$275,000 $3,915
$350,000 $4,603
$425,000 $5,607
$500,000 $6,768
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

To get your best rate for the coverage you need, compare home insurance quotes from a number of companies.

Cheapest home insurance companies in Detroit

Allstate is the cheapest home insurance provider in Detroit, charging an average annual rate of $1,644.

Auto Club has the city’s second-cheapest average, with an annual cost of $2,082.

Insurance company Annual premium
Allstate $1,644
Auto Club $2,082
USAA $2,159*
Frankenmuth $3,144
The Hanover $4,987
Farmers $9,474
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families.

See how much you could save with a new home insurance policy

Detroit's best home insurance companies

We found Allstate and Auto Club to be the best insurance companies in Detroit. Here’s why:

Best rates: Allstate

Allstate Logo

Allstate has the city’s cheapest rates, charging an average of just $1,644 a month. The company also offers a wide range of discounts for customers, including:

  • Multi-policy discount: Up to 25% for bundling home and auto coverage.
  • Responsible payment discount: Savings for paying from a reliable source, like escrow.
  • Claim-free discount: Up to 20% for switching to Allstate without a recent claim.

Best customer service: Auto Club

Auto Club leads the way in customer satisfaction, scoring the highest of all available providers on the J.D. Power satisfaction score index.

What’s more, the company also offers the city’s second-cheapest home insurance rates. The average Auto Club policy runs $2,082 a year, which is nearly $2,000 less than the citywide average.

Customer service ratings for Detroit home insurance companies

In terms of J.D. Power score, Auto Club leads the way, with a customer satisfaction rating of 817. On the NAIC Complaint Index, Auto Club is ranked second-highest, but The Hanover tops the list with a score of 0.08.

J.D. Power’s customer satisfaction scores are based on customer surveys that rate home insurers on interaction, policy offerings, price, billing process, policy information and claims. Higher scores are better than lower ones.

Insurance company Overall satisfaction score
Farmers 792
Allstate 815
Auto Club 817
Frankenmuth Not included
The Hanover Not included
USAA 884*
Source: J.D. Power 2022 U.S. Home Insurance Study. *Brand is not rank eligible because it does not meet study award criteria.

The NAIC Complaint Index compares insurance companies by confirmed complaints. A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size. A 0.5 rating reflects half as many as expected.

Insurance company Overall satisfaction score
The Hanover 0.08
Auto Club 0.19
Frankenmuth 0.30
USAA 0.37
Farmers 0.39
Allstate 0.52
Source: National Association of Insurance Commissioners (2022 data)

Home insurance risks in Detroit

Detroit experiences a number of weather events that can be a risk to homeowners. Thankfully, many of them — thunderstorms, tornadoes and winter storms — cause damage that is generally covered by most home insurance policies.

For homeowners, the biggest risk from these storms is flooding, which is fairly common in Detroit and is usually not covered by standard insurance policies.

Flood insurance in Detroit

Although flood insurance isn’t covered under homeowners insurance, you can purchase a separate policy to protect your home in the event of flood damage.

If you live in a high-risk flood zone, lenders may require you to obtain a flood insurance policy.

Frequently asked questions

The average cost of home insurance in Detroit is $3,915 a year, or $326 a month.

Allstate is the cheapest home insurance company in Detroit. For most drivers, Auto Club and Frankenmuth are the next-best options.

Michigan does not require homeowners to obtain an insurance policy. However, most lenders do, so if you have a mortgage you’ll likely need to get it.


We collected quotes from every ZIP code in Detroit, Michigan, for a standard HO-3 homeowners insurance policy using the following coverages:

  • $275,000 dwelling (unless otherwise noted)
  • $27,500 other structures
  • $137,500 personal property
  • $55,000 loss of use
  • $100,000 liability
  • $5,000 medical payments
  • $1,000 deductible (unless otherwise noted)

Home insurance by city

  • Detroit LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.