FACT SHEET: Michigan’s Home Insurance Crisis
Last Updated: 8/25/25
Climate change is pushing property insurance companies to raise rates and cancel policies in Michigan. Between 2019 and 2024, home insurance rates in the Great Lakes State increased by 32%. The increasing risk of flooding in the state is a major driver of Michigan’s home insurance crisis. Trump’s cuts to FEMA, alongside his far-reaching tariffs, will make Michigan’s home insurance crisis even worse.
- MICHIGAN’S HOME INSURANCE RATES HAVE SOARED IN RECENT YEARS, AND COSTS CONTINUE TO GROW
- INSURERS ARE REFUSING TO RENEW HOMEOWNERS’ POLICIES OR ARE PULLING OUT OF MICHIGAN’S INSURANCE MARKET ALTOGETHER
- CLIMATE CHANGE AND EXTREME WEATHER ARE DRIVING MICHIGAN’S INSURANCE CRISIS
- TRUMP WILL MAKE MICHIGAN’S INSURANCE CRISIS EVEN WORSE
MICHIGAN’S HOME INSURANCE RATES HAVE SOARED IN RECENT YEARS, AND COSTS CONTINUE TO GROW
- Between 2019 and 2024, home insurance rates in Michigan increased by 32%.
- In 2024 alone, home insurance rates in Michigan increased by 11%.
- From 2023 to 2025, average home insurance rates in Michigan increased by 28%, the third-highest increase in the nation.
- In 2024, premiums increased by nearly 20% year-over-year for residents of Detroit, Ann Arbor, and Lansing.
- Michigan was projected to see insurance rate increases in 2025, with the average annual premium expected to increase by $252, or 8%.
- On average, Detroit homeowners paid home insurance premiums that were twice as high as those across the rest of Michigan.
INSURERS ARE REFUSING TO RENEW HOMEOWNERS’ POLICIES OR ARE PULLING OUT OF MICHIGAN’S INSURANCE MARKET ALTOGETHER
- In 2023, Secura Insurance announced it was leaving the home insurance market in Michigan following two years of losses from climate disasters and inflation.
- Michigan’s home insurance nonrenewal rate experienced an uptick in 2023 when 1 in 173 policies were not renewed, a 26% increase from 2018.
- Detroit’s uninsured rate was estimated to be as high as 41% due to rising costs, higher than the state average rate of 14%.
CLIMATE CHANGE AND EXTREME WEATHER ARE DRIVING MICHIGAN’S INSURANCE CRISIS
- Experts believed worsening storm systems due to climate change were contributing to Michigan’s home insurance crisis.
- Property insurers were increasingly reluctant to handle claims for older infrastructure in Michigan that sustained damage during high-wind weather events.
- In 2024, home insurers saw wind, hail, and flooding damage make up a larger chunk of claims.
- The Great Lakes are seeing a decrease in ice cover, leading to more rainfall and flooding, which is not typically covered in standard property insurance policies.
TRUMP WILL MAKE MICHIGAN’S INSURANCE CRISIS EVEN WORSE
- Trump’s tariffs were expected to increase home insurance costs in Michigan by $99.
- Tariffs were expected to slow down disaster recovery efforts and make them more expensive. The National Association of Home Builders estimates a cost increase of $10,900 per home due to tariffs on construction materials.
- Trump’s cuts to disaster relief at the Department of Housing and Urban Development and attempts to disband FEMA would also increase the cost of home insurance.