Michigan homeowners Insurance

Understanding Michigan Homeowners insurance

Michigan law does not require homeowner’s insurance, but if you have a mortgage, the mortgage company will require it to protect the loan.  Homeowners insurance has two sections, Section 1 covers Property coverage, and section 2 covers Liability.

Michigan homeowners insurance building coverage

DwellingCoverage A – this 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.

Other StructuresCoverage B – 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.

Michigan homeowners insurance property coverage

Personal propertyCoverage C – An insurer will cover personal property owned or used by an insured anywhere in the world.

  • The insurer will cover the insured’s request personal property owned by others while the property is located at the insured property; 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 other than the primary residence, such as a storage facility. Still, there is no limitation for personal property that is moved to a new home for the first 30 days.
  • This coverage also protects the property of dependent college students.

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

Loss of Use – Coverage D – 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 is an increase in living expenses that an insured has to maintain their usual standard of living.

Michigan homeowners insurance liability coverage

Personal Liability – Coverage E– Coverage is provided to an insured under this section if a claim is made or a suit is brought against the insured for damages due to an injury or damage to property of others.

  • This coverage also covers the cost of defending you in any lawsuit for damages. It will pay the cost 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, but additional limits are available. 
  • Examples of liability claim: a dog bites, someone has drowned in a pool or an injury on your property.

Medical payments to others – Coverage F– 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 homeowners insurance quote.

Michigan homeowners insurance exclusions

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
  • Earthquake or earth movement
  • War or nuclear hazard
  • Vehicle damage to the home caused by an insured(covered under the auto policy)
  • Pets, insects, or animals
  • Property of roomers or boarders

These exclusions are a list, but not all-inclusive of Section 2 liability for injury or damage exclusions.

  • Intentional injury to others
  • Property owned by insured( you can’t sue your own company for the damage to your property)
  • Liability from war or acts of war
  • Business activity
  • Personal injury damages, from losses by libel or slander.

Finally, you may be able to purchase an endorsement to buy additional items that your homeowner’s policy does not cover.  If you are denied 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.