🏡 Is Michigan Homeowners Insurance Required? A Complete Guide

Michigan homeowners often wonder if insurance is legally required. While the state doesn’t mandate homeowners insurance, if you have a mortgage, your lender will require it to protect their financial interest. Even if you own your home outright, carrying homeowners insurance is one of the smartest ways to safeguard your property and finances.

🛡️ What Does a Michigan Homeowners Insurance Policy Cover?

Michigan homeowners insurance typically breaks into two sections:

  • Section I: Property Coverage
  • Section II: Liability Coverage

Let’s dissect them to ensure you understand the specific areas of protection.

🏠 Coverage A — Dwelling

This covers the structure of your home, including attached components like a garage or deck. It also covers materials and supplies on-site meant for home repairs or construction.

🛖 Coverage B — Other Structures

This protects separate structures like detached garages, sheds, or fences. However, we exclude structures used for business (e.g., an auto repair garage) or rented to non-tenants (e.g., a guest house).
👉 Typically, this coverage equals 10% of your Coverage A amount.

🛋️ Coverage C — Personal Property

This section covers:

  • Your personal belongings, regardless of their location in the world, are covered.
  • Others’ belongings on your property (not including roommates or fiancés) are also covered.
  • The property of dependent college students is also covered.

Most policies cover at least 50% of Coverage A for personal property, with higher limits available.
⚠ Keep in mind: There are special limits on high-value items like jewelry, firearms, cash, and securities.

🏡 Coverage D — Loss of Use

If a covered loss (like a fire) makes your home unlivable, this coverage pays for additional living expenses to maintain your standard of living while repairs are made.

⚖️ Michigan Homeowners Liability Coverage

💼 Coverage E — Personal Liability

If someone sustains injuries on your property or you inflict damage on others, this coverage shields you from lawsuits and claims. Common examples:

  • Dog bites 🐶
  • Pool accidents 🏊
  • Slip-and-fall injuries on your premises

Policies typically include a $100,000 minimum in liability protection, and they also cover legal defense costs.

🚑 Coverage F — Medical Payments to Others

Regardless of fault, this covers medical expenses in the event of an injury on your property. It does not cover you or household residents.
👉 Standard starting limit: $1,000.

💸 How Much Does Michigan Homeowners Insurance Cost?

According to Insurance.com (2025 update), the average Michigan homeowners insurance premium is

  • $1,073/year for a $200,000 home
  • With $100,000 liability
  • And a $1,000 deductible

Your rate will vary depending on:

  • Location
  • Coverage levels
  • Provider
  • Discounts (bundling, security systems, higher deductibles)

👉 Tip: Always review your coverage annually to maximize savings.

❌ What’s Excluded from Michigan Homeowners Policies?

Typical exclusions include:

  • Flood damage or sewer backup (separate flood insurance is needed) 🌊
  • Vehicle damage caused by the homeowner (covered under auto insurance) 🚗
  • Damage from pets, insects, or rodents 🐀
  • Property of roomers or boarders (non-family)

Endorsements, optional add-ons that expand coverage, can address some exclusions.

📈 What If You’re Denied Homeowners Insurance in Michigan?

If you’re struggling to get coverage, you have options!
Refer to our post: What to Do If You Can’t Get Michigan Homeowners Insurance for alternative solutions, including state-backed programs.

🌐 Outbound Resource

For the latest Michigan homeowners insurance resources, visit the Michigan Department of Insurance and Financial Services.

💥 Call to Action

👉 Ready to protect your home and savings? Please consider obtaining a Michigan homeowners insurance quote today.