Michigan Homeowners Pay Some of the Lowest Insurance Costs In The Country

Michigan homeowners benefit from some of the lowest insurance costs in the Midwest, with insurance premiums well below the national averages seen in coastal and climate-vulnerable regions.

While homeowners in Florida and Louisiana are paying record-high premiums, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report shows that Michigan remains a relatively affordable market.

Michigan’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Michigan homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average just $800–$999. Overall statewide costs fall into the $1,000–$1,499 range.

Michigan has 3,034,798 insured homeowner households in total—1,716,123 with a mortgage and 1,318,675 without. Among mortgaged owners, 173,800 pay less than $100 annually and 51,372 pay $4,000 or more. Among those without a mortgage, 280,359 pay less than $100 and 23,556 pay $4,000 or more.

Compared with nearby states, Michigan is among the most affordable. Indiana, Illinois, and Ohio all report average premiums of $1,000–$1,499 for mortgaged households, matching Michigan. Wisconsin is also in the same range. By contrast, Minnesota homeowners pay more, averaging $1,500–$1,999 with a mortgage. This positions Michigan as one of the most affordable insurance states in the Great Lakes region.

Climate Risks and Regional Exposure

The Realtor.com 2025 Climate Risk Report highlights how insurance affordability is tied to climate exposure. Miami, for example, tops the list, with average premiums of $22,718 annually, representing 3.7% of median home value. Florida metros such as Cape Coral, Sarasota, and Tampa also rank near the top.

Michigan does not appear in the rankings of metros with the steepest insurance burdens or the most extreme flood, wind, or wildfire exposures. The Great Lakes region faces risks of heavy storms, flooding, and seasonal lake-effect snow, but these events have not generated the same sustained insurance challenges as those in the Gulf Coast or wildfire-prone Western states. This helps explain why premiums remain low despite localized weather hazards.

A National Affordability Challenge

Even though Michigan homeowners benefit from affordability, national concerns about insurance costs are growing. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced difficulties obtaining or renewing coverage.

The rising costs are reshaping how buyers approach the housing market. Nearly 30% of homebuyers said they had completely changed the areas they were searching in due to insurance concerns, while another quarter said they had overhauled their strategies altogether. Even more troubling, 58% of homeowners said they would consider dropping coverage altogether if costs became too high, with younger generations the most likely to take that risk.

For Michigan households, relatively low premiums provide stability at a time when affordability pressures dominate the national conversation. Still, as climate risks expand nationwide, maintaining this advantage may become more difficult in the future.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.