Michigan homeownersKey to understanding Michigan Homeowners insurance

Michigan 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 used as 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.

a)      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.

b)      The insurer will limit personal property coverage to at least 50% of the Coverage A limits, but you can request higher limits; this amount will vary between insurance companies but must be at least 50%.

c)       The insurer will cover 10% of the limit of Coverage C for personal property at a location other than the primary residence such as storage facility, but there is no limitation for personal property that is moved to a new home for the first 30 days.

d)      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. 

There are additional coverages that are provided by Section 1 that have different limitations that may apply: (debris removal, trees, fire department service charge, 30 days of property coverage for property removed because of a loss and credit card losses, but usually limited to $500). 

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 either additional living expense. Additional living expense is a necessary 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.

a)      This coverage also covers the cost of defending you in any suit for damages and also pays for the cost of the defense in addition to your liability limit even if the suit is false or fraudulent.

b)      The minimum limit of liability available is $100,000, but additional limits are available. 

c)       Examples of liability claim: a dog biting someone if you own a pool and someone drowned, or someone who is injury that occurs 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 regular residents of the household and starts at $1000, but additional limits can be purchased.

There are additional section coverage’s that are also provided by liability (Claims expense, First aid, and damage to property of others). Different limits may apply, and you need to check with a Michigan insurance agent to get a quote.

Michigan homeowners insurance exclusions

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

a)      Flood or back up of sewer or drain.

b)      Earthquake or earth movement

c)       War or nuclear hazard

d)      Vehicle damage to the home caused by an insured(covered under the auto policy)

e)      Pets, insects, or animals

f)       Property of roomers or boarders

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

a)      Intentional injury to others

b)      Property owned by insured( you can’t sue your own company for damage to your property)

c)       Liability from war or acts of war

d)      Responsibility for a contract

e)      Liability covered by workers compensation

f)       Business activity

g)      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 can’t get Michigan Homeowners insurance go to our post What to do if you are Denied Michigan homeowners insurance to see what your options are.