From downtown Detroit to the farthest reaches of the state at Copper Harbor jutting out into Lake Superior like an index finger, Michigan has a wide variety of places to call home. One thing Michigan residents have in common is the need to save money, especially with a hard hit state economy. You're watching what you spend on extras like eating out, going to Tigers games, and the like. But you can also cut back on fixed expenses like insurance. How? According to the Michigan Office of Financial and Insurance Regulation, the best way to save on insurance is to shop around. So let's explore some ways you can save on your Michigan home insurance rates.
Michigan Home Insurance: What Kind of Coverage Do You Need?
Good question. First, look at your current situation. A good place to start is to have an idea what it would cost to replace your home. The "dwelling" part of a homeowner's insurance policy is the largest part of the equation. This is what it would cost to repair or replace your home at today's costs. A good place to start for this is an appraisal.
Ask yourself what are some likely claims scenarios where you live. Are you in a flood-prone area? Flood policies are always separate from regular homeowner's policies. Do you have children and do their friends often play at your home? Consider higher rates of liability coverage and medical coverage. These pay for civil suits and medical bills in the event someone is injured on your property. Do you have an older home with older, unprotected water pipes making freezing and bursting more likely? Ask if the policy covers water damage from frozen pipes.
Know the difference between replacement cost, repair cost and actual cash value (ACV). Replacement cost coverage repairs, replaces or rebuilds to the original condition using like materials. Repair cost will repair, replace, or rebuild to a similar condition though not necessarily the original. ACV pays for the replacement value of property less depreciation. This can greatly affect the value of coverage.
If you have valuable personal property like laptops, jewelry, camera, collectibles, antiques and the like, ask if these items are covered and to what extent. You may need an additional "rider" policy that specifically covers an item or increases the coverage.
Ask about all discounts. In Michigan, there are discounts for seniors (55+), new(er) homes, multi-lines (car and home), protective devices (dead-bolt locks, fire extinguishers, smoke detectors, burglar alarms, etc.), construction (brick vs. frame), good credit score, claims free and non-smokers. These can add up to over 50% savings.
Comparing Michigan Home Insurance Rates
Here are some Michigan home insurance examples from a recent survey of over 60 Michigan insurance companies, performed by the Michigan Office of Financial and Insurance Regulation.
Marquette Scenario: $100,000 replacement cost coverage for the dwelling (single family home); $50,000 ACV for contents; $10,000 additional structure (sheds, detached garage); Additional living expense varies from % of coverage to length of time (6 mos.); $200,000 liability; $1,000 medical payments per person; $5,000 off premises loss; $500 property of others (damage) replacement cost. Does not include flood insurance.
Rates ranged from $319 to $5,534!
DetroitScenario: Same coverage as Marquette.
Rates ranged from $544 to $12,685!
Traverse City Scenario: Same coverage as Marquette.
Rates ranged from $361 to $5,138!
Lowering Your Michigan Home Insurance Rates
Wow! There are many ways you can save on your Michigan home insurance rates. Knowing what coverage you may need is a good start. Then asking about all available discounts, and finally, comparison shopping. Let LocalInsurance comparison shop for you. Fill out one form and LocalInsurance will search the web providing you with multiple quotes from agents in your area.
If you are interested in learning more about Michigan home insurance, there are a number of resources that are offered by the state. Michigan has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.
|
