Key Takeaways
- Michigan uses standard ISO homeowners policy forms (HO-2, HO-3, HO-5, etc.)
- The Michigan Basic Property Insurance Association (MBPIA) provides coverage for hard-to-place risks
- Michigan requires 30 days notice for cancellation of homeowners policies (after 60 days in force)
- Non-renewal requires 60 days advance written notice with reason stated
- Flood damage is excluded from standard policies and requires separate NFIP or private coverage
Last updated: January 2026
Michigan Homeowners Insurance Requirements
Michigan has specific property insurance regulations and consumer protections that producers must understand.
Michigan Homeowners Policy Forms
Michigan uses standard ISO policy forms:
Common Policy Forms
| Form | Coverage Type | Dwelling | Personal Property |
|---|---|---|---|
| HO-2 | Broad | Named perils | Named perils |
| HO-3 | Special | Open perils | Named perils |
| HO-4 | Renters | N/A | Named perils |
| HO-5 | Comprehensive | Open perils | Open perils |
| HO-6 | Condo | Named perils | Named perils |
| HO-8 | Modified | Named perils | Named perils |
Exam Tip: Michigan uses standard ISO forms. HO-3 (Special Form) is the most common homeowners policy.
Key Coverage Provisions
- Dwelling coverage based on replacement cost
- Personal property typically 50-70% of dwelling limit
- Liability coverage included (Coverage E)
- Medical payments to others (Coverage F)
- Additional living expense coverage
Michigan Basic Property Insurance Association (MBPIA)
The MBPIA is Michigan's residual market for property insurance:
MBPIA Purpose
| Feature | Details |
|---|---|
| Purpose | Coverage for hard-to-place risks |
| Coverage | Basic property coverage |
| Eligibility | Must be declined by voluntary market |
| Territory | Statewide coverage |
| Funding | Assessments on member insurers |
How MBPIA Works
- Applicant must be declined by at least 2 voluntary market insurers
- Application submitted through licensed agent
- Property must meet basic standards
- MBPIA issues policy at approved rates
Covered Property
- Owner-occupied dwellings
- Rental properties
- Commercial properties (limited)
- Contents coverage available
Cancellation and Non-Renewal Requirements
Michigan has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Timeframe | Notice Required |
|---|---|
| First 60 days | May cancel for any reason with notice |
| Non-payment of premium | 10 days notice |
| After 60 days (other reasons) | 30 days notice |
| Fraud or misrepresentation | 30 days notice |
Non-Renewal Notice Requirements
| Requirement | Details |
|---|---|
| Standard Non-Renewal | 60 days before expiration |
| Reason Required | Must provide specific reason |
| Written Notice | Must be in writing |
| Consumer Rights | May request reconsideration |
Consumer Protections
- Cannot cancel solely for filing one claim
- Must provide written reason for non-renewal
- Right to request explanation from DIFS
- Protection from arbitrary cancellations
Rate Regulation
Michigan homeowners rates are regulated:
File and Use System
- Insurers file rates with DIFS
- Rates can be used after filing
- DIFS reviews for compliance
- Must be actuarially justified
Prohibited Factors
Cannot rate based on:
- Race or religion
- National origin
- Credit score alone (some restrictions)
- Geographic redlining
Flood Insurance
Standard property policies exclude flood damage:
- National Flood Insurance Program (NFIP) available
- Private flood insurance growing
- Agents must disclose flood exclusion
- Special Flood Hazard Areas require coverage for mortgaged properties
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Test Your Knowledge
What is the purpose of the Michigan Basic Property Insurance Association (MBPIA)?
A
B
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D
Test Your Knowledge
How many days notice must a Michigan insurer provide for non-renewal of a homeowners policy?
A
B
C
D