Is Michigan Homeowners insurance required

Michigan homeowners insuranceMichigan law does not require homeowner’s insurance. If you have a mortgage, the mortgage company will make you purchase insurance on your home to protect their financial interest in the property. 

Coverage under a Michigan homeowners insurance policy

Homeowners insurance has two sections, Section 1 covers Property coverage, and section 2 covers liability.

Coverage A  Dwelling: This coverage protects the structure of your home.  It includes coverage for structures attached to the house, such as an attached garage and materials and supplies (to be used for construction, alteration, or repairs of your dwelling or attached structures) located on or next to your premises.

 Coverage B Other Structures: The insurer covers other structures on the residence premises that are separate from the main structure.  A detached garage or utility shed would qualify for this coverage.  However, structures that are a part of a business (auto repair out of a garage), or rented to a person who is not a tenant of the dwelling (guest house) will not be covered. Coverage will be 10% of Coverage A.

Personal property coverage available on a Michigan homeowners insurance policy

Coverage C property: An insurer will cover personal property owned or used by an insured anywhere in the world.

  • The insurer will cover the insured’s personal property owned by others while the property is on your premises; this will not include a fiancé or roommate.
  • The insurer provides at least 50% of the coverage A limits, but higher limits are available. This amount will vary between insurance companies but has to be at least 50%.
  • The insurer will cover 10% of the limit of Coverage C for personal property at a location, such as a storage facility. Still, there is no limitation for moving personal property to a new home for the first 30 days.
  • This coverage also protects the property of dependent college students.

There is a unique limitation on certain personal property items such as jewelry, money, securities, and firearms. 

Coverage D Loss of Use: if the primary structure is not livable due to a covered loss, the insurance company will provide the insured with an additional living expense. The additional living expense coverage is an increase in living expenses that an insured has to maintain their usual standard of living.

Michigan homeowners insurance liability coverage

Coverage E Personal Liability: Coverage is provided to an insured if a claim or lawsuit is brought against the insured for damages from an injury or damage to their property. Examples of liability claims: Dog bites, someone drowning in a pool, or an injury on your property.

  • This coverage also covers the cost of defending you in any lawsuit for damages. It will pay the fee of your defense in addition to the liability limit, even if the suit is false or fraudulent.
  • The minimum limit of liability available is $100,000. 

Coverage F Medical payments to others: Under this coverage, the insurer will pay medical expenses to others for necessary medical costs incurred or medically ascertained within three years from the date of accident or injury.  This coverage does not apply to the insured or residents of the household and starts at $1000.

There are additional section coverage’s that liability provides (Claims expense, First aid, and damage to property of others). To find out how much a homeowner’s insurance policy costs click the link to get a Michigan homeowner’s insurance quote or call 248-277-4505.

How Much Does Michigan Homeowners Cost

According to Insurance.com, the statewide average for Michigan home insurance premiums is $1,073 per year for a $200,000 home with 100,000 in liability and a $1000 deductible. However, costs will vary depending on location,  the coverage amount, your choice of provider. Maximizing the discounts and deductibles on your policy can help to lower the premium that you pay for your home.

Exclusions on a Michigan homeowners policy

These exclusions are a list, but not all-inclusive of Section 1 property loss or damage exclusions.

  • Flood or back up of sewer or drain
  • Vehicle damage to the home caused by an insured(covered under the auto policy)
  • Pets, insects, or animals
  • Property of roomers or boarders

Finally, you may be able to purchase an endorsement to buy additional items that your homeowner’s policy does not cover.  If an Insurer denies you Michigan Homeowners insurance, go to our post to find out what to do if you can’t get Michigan homeowners insurance to see what your options are.