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Homeowners Insurance in Michigan

Michigan homeowners insurance is not mandatory under state law, unless residents finance their home. In this case, homeowners insurance coverage is mandatory to protect the financial interest of the property. However, home and property insurance coverage is available to all eligible homeowners, regardless of the age and location of the dwelling. Under state law, homeowners insurance companies cannot deny applicants of coverage, unless residents are deemed ineligible. For instance, a homeowner insurance company may deny applicants of coverage if they were found guilty of committing arson or fraud within the previous five years. However, many cheap homeowners insurance policies are available to ineligible residents through the Michigan Basic Property Insurance Association (MBPIA). This type of property and home insurance is available to residents who cannot obtain coverage through the regular market. Alternately, eligible residents can compare homeowners quotes online to find affordable coverage options. Customers can get homeowners insurance quotes here. To learn more about homeowner insurance coverage in Michigan, review the information below.

Michigan Home and Property Insurance Requirements

Michigan homeowners insurance is a requirement under state law if residents mortgage their homes or apartments, as coverage protects the financial interest of the property. To meet these homeowner insurance requirements, residents must review their loan documents, as their lender will likely require them to obtain a certain amount of coverage. To get started, homeowners can compare home and property insurance quotes here.

Why do I need homeowners insurance coverage in Michigan?

While Michigan property and home insurance coverage is only mandatory if residents finance their home or dwelling, there are many benefits to obtaining a policy. For instance, typical homeowners insurance policies include seven parts, including Coverage A, B, C, D, E, F and G. Each type of homeowners coverage includes the following:

  • Coverage A/Dwelling – protects homeowners from losses to their home or dwelling
  • Coverage B/Appurtenant Structures – protects homeowners from losses to other structures, such as a tool shed, barn or swimming pool (up to a certain amount)
  • Coverage C/Personal Property homeowner insurance – protects residents from personal property losses
  • Coverage D/Additional Living Expenses – protects customers from any additional living expenses they may incur, including hotel bills and restaurant meals
  • Coverage E/Liability – protects homeowners from liabilities, including property damages or bodily injuries
  • Coverage F/Medical Payments – pays for the immediate medical care of an individual who sustains injuries while on the insured’s property
  • Coverage G/Property of Others – pays for the replacement cost or physical damages of other properties

Many homeowners insurance companies in MI sell additional coverages as well, including full replacement costs, debris and/or tree removal, tree, shrub or plant replacement, fire department service charges, credit card reimbursements, personal property endorsements, water backup, ordinance and law coverages, and flood insurance. If residents do not purchase homeowner insurance coverage and their home or possessions sustain damages, then they will need to cover these losses on their own. For this reason, even basic homeowners insurance coverage is essential. To find a cheap Michigan homeowner insurance policy, residents may compare quotes online here.

How much does Michigan homeowners insurance cost?

The cost of home and property insurance in MI often varies depending on the rating factors the company uses. These homeowner insurance rating factors include the following:

  • The coverage type and amount
  • The age and condition of the home
  • The resident’s claim history
  • The construction materials used to build the home
  • The availability of local fire protection, crime prevention and law enforcement services
  • The overall cost to rebuild the home

The average cost of Michigan homeowners insurance coverage in 2015 was $908, according to the Insurance Information Institute. In addition to these homeowner insurance rating factors, companies develop underwriting rules to help them determine whether residents qualify for coverage. In most cases, homeowners insurance companies use the same underwriting rules throughout the state. To find an affordable homeowner and property insurance policy, residents can compare quotes here.

How to Compare Homeowners Quotes in Michigan

Comparing homeowners quotes is essential, as many companies use different rating factors to help them determine premiums. To get the most accurate homeowners insurance quotes, however, customers need to provide the company with the type of construction materials used to build the home, the floor plan type and square footage, the number of rooms in the dwelling, the garage or carport type, the home’s loss history, the distance from the nearest fire hydrant or department and any fire or security devices in the home. When comparing homeowners quotes in MI, it is also important to ask the company about deductible amounts, any available discounts, the specific coverage type and if the policy covers the replacement of jewelry and personal possessions. To get started, customers can obtain homeowners insurance quotes online here.

How to Get Homeowners Insurance in Michigan

When obtaining homeowners insurance coverage in Michigan, customers need to determine if they wish to purchase a broad policy (HO-2), an all-risk policy (HO-3), renters coverage (HO-4) or a condominium plan (HO-6). Home and property insurance endorsements and additional coverages are also available through many providers in the state. To find a suitable homeowner insurance policy, customers may compare quotes online here or they may choose to work with an on-site agent if they prefer. If a company deems customers as ineligible, then those residents may obtain coverage through the MBPIA. However, their agent must apply to the MBPIA and obtain coverage on behalf of the applicant.