It's not hard to understand the basic premise of home insurance. You pay an insurance company to protect you against property damage and loss. But few homeowners understand the fine print associated with their home insurance policies. And Michigan home insurance is full of peculiarities that result from the unique geography, economic hardship, and legislative priorities of the Wolverine State.
The Average Cost of Michigan Home Insurance Quotes
In 2006, the average cost of Michigan home insurance quotes was $714, compared to the national average of $804. This is the last year for which comprehensive data is available. Preliminary data suggests that home insurance has increased over the last three years, although rates have been particularly unstable since the housing crisis has forced so many homeowners to reappraise their homes and, in some cases, alter their home insurance coverage accordingly. Along with type of policy you choose, the biggest individual factors that will affect your Michigan home insurance quotes are the value of your home, its vulnerability to damage as determined by location, and your personal record as a homeowner (past claims, credit rating, home security, etc.).
Michigan Home Values: The Market vs. Replacement Costs
It would be nice to think that the home you just bought for, say, $50,000 only needs a home insurance policy that covers that amount. Unfortunately, should you suffer a total property loss or just major damage to the home, replacement costs may exceed the market value of your home. This can happen anywhere, but severely depressed home values throughout Michigan are making this problem an unusually common one. Most Michigan home insurance companies offer both market value and replacement cost coverage. It can be tempting to choose the cheaper plan, but you are running a risk of leaving yourself with significant out-of-pocket expenses or, worse, an inability to rebuild at all. Moreover, if you're still carrying a mortgage on your home, your lending institution is very likely to demand a more comprehensive home insurance policy.
Shopping for Michigan Home Insurance Policies
Here's the frustrating part about home insurance policies in Michigan, or most any state for that matter: Basic home insurance policies typically cover what is known as the 11 basic home perils (fire or lightning, windstorm or hail, explosions, riot or civil commotion, damage from aircraft, damage from vehicles, smoke damage, vandalism, theft, volcanic eruption, glass or safety-glazing material damage). Many of these perils may result in only minor damage for which you may not even want to make a claim. Along with a potentially high deductible, making claims on your home insurance can raise your premium rates, just as it does with car insurance. On the other hand, the biggest danger facing some Michigan homes is flooding, which is not covered under standard home insurance plans and requires a separate insurance rider.
Finding Michigan Home Insurance Quotes
Michigan home insurance quotes are easy to find, but without the right source, they can be difficult to filter, process, and choose. That's why NetQuote is here. Fill out a simple, online form, and we'll find the companies that best fit your insurance needs. You'll be able to solicit home insurance quotes from several, reliable insurance providers, but better yet, you'll be able to do so from the comfort of your home. This solution will also allow you to avoid the pushier, face-to-face sales tactics that previous generations had to endure. After all, you don't need to be scared or bullied into buying home insurance.