Michigan Basic Insurance: Your Guide to FAIR Plan Homeowners Coverage

What Is Michigan Basic Insurance?

Michigan Basic Insurance provides fair access to homeowners insurance for Michigan residents, especially when private insurance companies decline coverage.

It is part of the FAIR Plan system (Fair Access to Insurance Requirements), established under the Federal Omnibus Housing Bill passed on August 1, 1968.

The goal?

To make property insurance available to everyone—regardless of the property’s location or age.

How to Get a Michigan Basic Insurance Policy

Getting insured through Michigan Basic is straightforward:

  1. Contact a Michigan Basic agent – Call 248-888-1134 to start your application.
  2. Request a quote online – Fill out your information to receive a Michigan Basic Quote.
  3. Make a 25% down payment – Coverage begins the next day after payment.
  4. Schedule a home inspection – A Michigan Basic representative will arrange an inspection within 7–10 days.

Pro Tip:

Michigan Basic Insurance is a safety net for those who struggle to find homeowners insurance elsewhere.

Michigan’s Essential Insurance Act: Your Rights Explained

Under the Essential Insurance Act, insurance companies cannot deny you coverage based solely on:

  • The age of your home

  • The location of your property

  • The neighborhood where you live

However, you can still be denied if:

  • Property taxes are over two years overdue

  • You were convicted of arson or property destruction in the past five years

  • The property is used for illegal or dangerous purposes

  • The property is in poor condition (such as a damaged roof)

  • You previously committed insurance fraud or arson

  • You refuse to purchase the minimum required coverage

Why Your Property May Still Be Denied or Canceled

Insurance companies can also deny or cancel policies based on:

  • The physical condition of the home

  • Hazards near the property

  • Vacancy of the home

  • Negligent liability claims within the past three years

  • Multiple property claims totaling over $4,000 ($3,000 for non-weather claims)

What Michigan Basic Homeowners Insurance Covers

1. Replacement Cost Policy

  • Covers the cost to repair, rebuild, or replace damaged property with materials of the same kind and quality.

  • Example: If you have plaster walls, they will replace them with new plaster walls.

  • Requirement: Insure your home for at least 80% of its replacement value.

2. Repair Cost Policy

  • Covers repairs using modern materials to restore the property to a similar condition.

  • Example: Plaster walls might be replaced with drywall.

  • Requirement: Insure your home for its market value.

? Tip: Replacement Cost Policies usually provide broader protection than Repair Cost Policies

Who Qualifies for Michigan Basic Homeowners Insurance?

To qualify, you must:

  • Own or rent a residential property that meets local building codes

  • Ensure the property is not used for business or illegal activities

Good to know:

Michigan Basic provides a free inspection to determine eligibility. If the property doesn’t qualify, you’ll receive a detailed explanation and guidance on what repairs are needed.

Once approved, policies are:

  • Issued for one year initially

  • Renewable for up to two more years without a new inspection unless otherwise required

Temporary Coverage with Michigan Basic

If you’re waiting for inspection or making necessary repairs, Michigan Basic can issue a temporary binder for up to 60 days to protect your home in the meantime.

Why Choose Michigan Basic Insurance?

? Protects homeowners who can’t get private insurance

? Offers fair, regulated rates

? Provides standard HO-2 and HO-3 homeowners policies

? Offers peace of mind with flexible temporary coverage

?? Ready to Get Started?

Contact a licensed Michigan Basic agent at 248-888-1134 or click here to request your quote and secure your home with confidence.

Related Resource:

Michigan Homeowners Insurance – Complete Guide