Short answer: Michigan gives homeowners unusual protection: under the state's Essential Insurance law, an insurer can't deny you solely because of your home's age, its location or the type of neighborhood, and may refuse only for listed reasons. If the regular market still won't cover you, the Michigan Basic Property Insurance Association (MBPIA) sells homeowners, renters, condo and dwelling coverage. Insurers must pay a claim within 60 days after proof of loss or owe 12% simple interest on the overdue amount.
This guide is general information for Michigan homeowners. It isn't legal advice. Your policy wording controls.
Step 1: Know your Essential Insurance rights
The Department of Insurance and Financial Services (DIFS) guide Homeowners Insurance: Are You Eligible? says you can't be denied solely because of the age of your house, its location or the type of neighborhood. An insurer can turn you down for listed reasons, such as an arson or property-destruction conviction within five years, a claim denied for arson or fraud within five years, illegal or dangerous use of the property, refusing the minimum coverage required, or property taxes more than two years past due. Insurers also apply filed underwriting rules, which must be applied the same way to everyone.
Step 2: The Michigan Basic Property Insurance Association
According to the DIFS MBPIA publication, the MBPIA provides property insurance to qualified people who can't get it in the regular market, including homeowners, renters, condo-owners, dwelling fire and commercial coverage. Its homeowners forms are equivalent to HO-2 and HO-3, and a replacement cost policy is available if you insure at least 80% of the replacement cost.
Step 3: Non-renewal
Under MCL 500.2123, insurers must give 30 days' notice and follow their filed underwriting rules. Details: Michigan homeowners non-renewal rules.
Step 4: Claims and the 12% interest rule
The DIFS consumer guide How to Claim What Is Yours explains that insurers must tell you within 30 days what proof of loss they need, and must pay within 60 days after proof of loss; overdue amounts earn 12% simple interest. Flood isn't covered by homeowners insurance; see FloodSmart.
See our tables: non-renewal notice rules by state, insurance claim deadlines by state and home insurance claim and lawsuit deadlines by state.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Michigan.
Frequently asked questions
Can a Michigan insurer deny me because my house is old?
Not solely because of its age, location or the type of neighborhood, according to DIFS. Insurers can deny only for listed reasons or under filed underwriting rules applied equally.
What does the Michigan Basic Property Insurance Association offer?
Homeowners, renters, condo-owner, dwelling fire and commercial coverage, including replacement cost homeowners policies if you insure at least 80% of replacement cost.
What happens if a Michigan insurer pays a claim late?
Amounts not paid within 60 days after proof of loss earn 12% simple interest.
How much notice before a Michigan homeowners non-renewal?
30 days under MCL 500.2123.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.