If your homeowners renewal came in higher this year, you’re not alone. Premiums have climbed across Michigan, and in most cases it isn’t because you did anything wrong. Here’s what’s driving the increase, what your policy actually covers, and what you can do about it.
Why home insurance premiums keep rising
Your premium is built around one big number: what it would cost to rebuild your home if it were destroyed. When that number goes up, so does your premium.
- Building costs. Lumber, roofing, drywall and other materials cost far more than they did a few years ago, and skilled labor is harder to find and more expensive.
- Replacement cost adjustments. Many carriers automatically raise your dwelling limit each year to keep pace with construction costs. A higher limit means a higher premium, but it also protects you from being underinsured.
- Weather losses. Severe storms, wind, hail and water damage claims have increased, and carriers price that risk into every policy in the region.
- Older roofs and systems. Roof age, plumbing, electrical and heating systems all affect pricing. An aging roof can raise your rate or limit which carriers will write the home.
What does home insurance actually cover?
A standard Michigan homeowners policy (often called an HO-3) bundles several coverages together:
- Dwelling: the structure of your home, including attached features like a garage.
- Other structures: detached garages, sheds and fences.
- Personal property: your belongings, from furniture to electronics to clothing.
- Loss of use: extra living expenses if a covered loss forces you out of your home.
- Personal liability: protection if someone is injured on your property or you accidentally damage someone else’s property.
- Medical payments to others: small medical bills for guests injured at your home, regardless of fault.
Just as important is what a standard policy doesn’t cover. Flood is excluded, and so is water that backs up through a sewer or floor drain unless you add backup coverage. Wear and tear, maintenance problems and earth movement are also typically excluded.
Ways to keep your premium under control
- Shop multiple carriers. Rates for the same home can vary widely from one company to the next. As an independent agency, we compare 15+ carriers in one review.
- Bundle home and auto. Multi-policy discounts are often the single biggest savings available.
- Review your deductible. A higher deductible lowers your premium. Choose an amount you could comfortably pay out of pocket.
- Ask about discounts. A newer roof, updated systems, monitored alarms and a claim-free history can all reduce your rate.
- Don’t cut coverage to save money. Lowering your dwelling limit below rebuild cost can leave you badly underinsured after a major loss.
When to review your policy
Review your home insurance every year at renewal, and any time you renovate, finish a basement, replace the roof or add something valuable like jewelry or a generator. If your premium jumped and you’re not sure why, request a home insurance review or call us at (734) 525-9450. We’ll explain what changed and compare your options across carriers.
More answers: Home insurance FAQs · Home insurance in Michigan