Last Updated on September 12, 2025 by The Insurance Pros
9 Surprising Coverage Gaps in Michigan Home Insurance
Many Michigan homeowners assume their policy covers everything, but that isn’t always true. Understanding the coverage gaps, from natural disasters to common limits and exclusions, can help you prevent costly surprises. Let’s explore nine unexpected coverage gaps and how to fill them.
1. Flood Damage (Even in Non‑Flood Zones)
Most home insurance policies in Michigan don’t cover flood damage unless you add a separate flood policy. That includes flooding from overflowing rivers, heavy rain, or water seeping up from the ground.
2. Earthquakes & Earth Movements
Damage due to earthquakes, mudslides, sinkholes, or subsidence usually isn’t covered under standard policies; you’ll need a specialized endorsement.
3. Sewer or Drain Backup
Damage from sewer backups or ground seepage is commonly excluded, but you can add an endorsement to receive this protection.
4. Pest Infestations & Neglect (Like Termites or Rodents)
Damage caused by pests or long-term neglect is often not covered, since these are considered avoidable maintenance issues.
5. Mold Damage (Unless Tied to a Covered Event)
Mold is usually excluded unless it stems from a sudden, covered peril, like a burst pipe, and you act quickly to document and mitigate it.
6. High‑Value Items (Jewelry, Art, Collectibles)
Standard coverage caps payouts for valuable items. You’ll need to appraise and add them explicitly with a rider or endorsement.
7. Home Office or Business Property
A typical policy offers only limited coverage (around $2,500) for business equipment, insufficient for most home‑based work setups.
8. Intentional Acts
Insurance doesn’t cover deliberate damage. In Michigan, insurers must prove intentionality before denying claims under this exclusion.
9. War, Nuclear, and Government Actions
Most policies exclude catastrophic or “acts of God” scenarios like war, terrorism, civil unrest, or nuclear events.
Quick Snapshot: What’s Excluded & What to Do
| Exclusion | Why It’s Excluded | How to Get Coverage |
|---|---|---|
| Flood | Requires separate policy | Add flood insurance |
| Earth Movement | Unpredictable geological events | Endorsement or earthquake policy |
| Sewer Backup | Maintenance‑related | Add sewer‑backup coverage |
| Pest Damage | Preventable negligence | Routine maintenance |
| Mold | Often tied to neglect | The document covered events |
| Valuables | Policy limits | Add scheduled items endorsement |
| Home Office | Business‑use limit | Add business property coverage |
| Intentional Acts | Public policy exclusion | Don’t neglect or cause harm |
| War/Nuclear/Gov’t Acts | Catastrophic, uninsurable risks | Specialty insurance if needed |
What You Can Do About These Gaps
Here’s how you can protect your home better:
- Review your policy declaration page to identify limits or exclusions.
- Ask your agent about endorsements for flood, sewer backup, high‑value items, or business equipment.
- Document your home contents using the NAIC Home Inventory App or printable checklist.
- Download our free “What’s Covered vs. What’s Not” reference sheet to keep handy during reviews.
Why It Matters for Michigan Homeowners
Michigan winters, older homes, and proximity to water heighten the risk of coverage gaps—ice dams, basement floods, or sewer backups are more common here than in many states. For more details on one of the most common and costly issues, read our guide to preventing sewer and drain damage in Michigan basements.
Don’t Wait, Download Now
Download the “What’s Covered vs. What’s Not” Checklist
Understanding what your Michigan home insurance doesn’t cover empowers you to avoid surprises and ensure real protection. Not sure what’s in your policy? Reach out to a licensed agent for a thorough review.
