A blue Michigan home with a red DENIED stamp fading into a blue shield labeled COVERED, representing denied insurance turning into approved coverage.

Denied Michigan homeowners insurance? Learn how Michigan Basic Insurance helps you turn rejection into reliable protection.

Denied Michigan Homeowners Insurance? Here’s What You Can Do

If you’ve been denied Michigan homeowners insurance, you’re not alone. Although the Michigan Essential Insurance Act protects residents from being denied solely due to the age or location of their home, there are several legitimate reasons insurers may deny or cancel coverage.

Why Insurance Companies Deny Homeowners Insurance in Michigan

  • Property taxes are over two years overdue
  • Conviction of arson, explosives use, or property destruction in the past five years
  • Property is used for illegal or dangerous purposes
  • Physical condition presents a high risk of loss (e.g., a damaged roof)
  • Claim denied for fraud or arson within the past five years
  • Refusal to purchase the minimum required coverage

Additional Reasons You May Be Denied or Cancelled

  • The home has adjacent hazards or is in a vacant/high-risk area
  • You’ve had a negligent liability claim within the past three years
  • Three or more property claims totaling over $4,000 (or $3,000 if not weather-related)
  • Failure to correct a dangerous condition after being notified

What to Do If You’re Denied: Michigan Basic Insurance

If private insurers won’t cover your home, you may qualify for the Michigan Basic Property Insurance Association (MBPIA). It’s a state-run, nonprofit program created to help Michigan residents get the homeowners insurance they need.

Who Qualifies for Michigan Basic Insurance?

  • You own or rent and live in the property
  • The home meets local building code standards
  • The property is not used for business, farming, or illegal activity

MBPIA offers a free inspection. If your home doesn’t qualify, they’ll explain why and suggest repairs. Once approved, your policy is issued for 1 year and can be renewed for up to 2 more years without another inspection.

Types of Michigan Homeowners Policies Offered by Michigan Basic

1. Replacement Cost Policy

This policy covers rebuilding or repairing your home using the same kind and quality of materials.

?? Example: If your home has plaster walls, plaster will be used—not drywall.

?? You must insure the home for at least 80% of its replacement value.

2. Repair Cost Policy

This policy restores your home to a similar condition using modern materials.

?? Example: Plaster walls may be replaced with drywall.

?? You must insure your home for its market value, which typically offers less coverage than a Replacement Cost policy.

How to Get a Michigan Basic Insurance Quote

Need help understanding your policy options? Check out:
Understanding Michigan Homeowners Insurance

Take Control of Your Coverage

Being denied Michigan homeowners insurance isn’t the end of the road. With programs like Michigan Basic Insurance, there are still options available. Whether you’re recovering from a denied claim or facing home repair issues, take action now to protect your home and regain peace of mind.