Michigan Basic Insurance is a Fair Plan Policy

Michigan Basic Insurance will provide fair access to property insurance at standard rates regardless of property location.  This insurance company is part of the FAIR Plans (Fair Access to Insurance Requirements). Created on October 29, 1968, the Federal Omnibus Housing Bill, passed on August 1, 1968, to create the FAIR Plans to make property insurance more readily available to people who can’t obtain it from private insurance companies.

Steps to Getting a Michigan Basic Policy:

  1. Contact a Michigan Basic agent. You must purchase a Michigan Basic policy from a licensed Michigan agent. Call a Michigan Basic agent at 248-888-1134. 
  2. Click the link to fill out your information for a Michigan Basic Quote.
  3. Michigan Basic policies require a 25% down payment; coverage will begin the next day after payment.
  4. After payment, a representative will contact you within seven days to ten days to schedule an interior and exterior inspection.

Michigan Basic Insurance provides insurance when you can’t get Michigan homeowners insurance.

In Michigan, under the Essential Insurance Act, you cannot be denied insurance coverage solely because of the age of your house, location, or where you live. However, you may be ineligible and denied coverage for these reasons:

  • Taxes on your property are over two years past due.
  • You were guilty of arson or destroying property within the past five years.
  • The property you want to insure has illegal or dangerous purposes.
  • If your home has a physical condition that presents a likelihood of a loss (such as a bad roof)
  • Within the past five years, an Insurance company has denied your claim for fraud or arson.
  • You want to avoid buying the minimum coverage required for the type of policy you want to buy.

Companies can also refuse to write new policies based on the physical condition of the property, adjacent hazards, and property vacancies. Companies may not renew policies if there is a liability claim in which the insured was negligent during the past three years. Or if an Insured has three property claims totaling over $4000 ($3000 if non-weather related). Coverage can also be cancelled if the insured fails to correct a dangerous condition after being notified by the company.

Michigan Basic Insurance provides basic homeowners insurance

Michigan Basic provides property insurance to qualified individuals who need help getting Michigan homeowners insurance with another company. You can get a standard HO-2 or HO-3 policy from Michigan Basic if you qualify. These policies are the same policies that regular insurance companies offer.

To qualify for homeowners insurance with Michigan Basic Insurance

You need to own or rent and live in a qualified property.

  • “Qualified Property” means a residential property that meets building code standards is not used for farming or business and does not engage in illegal activities.

To determine if your property is “qualified,” MBPIA will have your property inspected (at no cost to you). Suppose MBPIA decides that your property does not qualify. In that case, they will give you a written explanation of why the property does not qualify and what to do to make it eligible. All Michigan Basic Policies are issued for one year and renewed on a qualified property for the next two years without another inspection, which Michigan Basic schedules at their discretion.  Michigan Basic can issue a temporary binder for up to 60 days to insure your property while waiting for inspection or making the repairs to qualify your property.

Michigan Basic insurance offers two types of Michigan homeowners insurance policies:
  • Replacement Cost Policy– This policy will allow you to replace, repair, or rebuild your damaged property to its original condition with the same kind and quality materials. That means they will replace the damaged walls with plaster walls if you have plaster walls.  To purchase this policy, you must insure your home for insurance equal to or greater than 80% of what it would cost to replace your property.
  • Repair Cost Policy- This policy allows you to replace, repair, or rebuild your damaged property to a condition similar to before the damage, using modern materials. If you have plaster walls, replace the walls with drywall.  To buy this type of policy, you must purchase insurance equal to the market value. This type of policy generally provides less coverage than a Replacement cost policy.

Read Understanding Michigan Homeowners insurance for complete information on Michigan homeowner’s policies.