Last Updated on July 5, 2025 by The Insurance Pros

Denied Michigan Homeowners Insurance? Here’s What You Can Do 🛑🏠

A blue Michigan home with a red DENIED stamp fading into a blue shield labeled COVERED,If you’ve been denied Michigan homeowners insurance, you’re not alone. Although the Michigan Essential Insurance Act protects residents from being denied solely due to the age or location of their home, there are several legitimate reasons insurers may deny or cancel coverage.

📉 Why Michigan Homeowners Insurance Gets Denied

  • 🏚️ Property taxes are over two years overdue
  • 🔥 Conviction of arson, explosives use, or property destruction in the past five years
  • 🚫 Property is used for illegal or dangerous purposes
  • 🔧 Physical condition presents a high risk of loss (e.g., a damaged roof)
  • 🚨 Claim denied for fraud or arson within the past five years
  • 🧾 Refusal to purchase the minimum required coverage

⚠️ Other Reasons You Might Be Denied or Canceled

  • 🏚️ Home is in a vacant/high-risk area or has adjacent hazards
  • ⚖️ You’ve had a negligent liability claim within the past 3 years
  • 💸 Three or more property claims over $4,000 (or $3,000 if not weather-related)
  • 🔍 Failure to correct a known dangerous condition

🛡️ What to Do If You’re Denied: Try Michigan Basic Insurance

If private insurers won’t cover your home, you may qualify for the Michigan Basic Property Insurance Association (MBPIA), a state-run, nonprofit program created to help Michigan residents get the insurance they need.

👥 Who Qualifies for Michigan Basic?

  • 🏠 You own or rent and live in the property
  • 🔧 Home meets local building code standards
  • 🚫 Property isn’t used for business, farming, or illegal activity

✅ MBPIA offers a free inspection. If your home doesn’t qualify, they’ll explain why and suggest repairs. If approved, MBPIA issues your policy for one year and lets you renew for up to two more years without reinspection.

🧾 Michigan Homeowners Policies Offered

1️⃣ Replacement Cost Policy

🏗️ Covers rebuilding or repairing your home using the same kind and quality of materials.

📌 Example: If your home has plaster walls, they’ll be replaced with plaster, not drywall.

📏You must insure your home for at least 80% of its replacement value.

2️⃣ Repair Cost Policy

🔨 This policy restores your home using modern, comparable materials.

For instance, you could replace your plaster with drywall..

💰 You must insure the home’s market value, which is usually less than the replacement cost.

📞 How to Get a Michigan Basic Insurance Quote

🔍 Need help understanding your policy options? Check out this post:

🧠 Understanding Michigan Homeowners Insurance

✅ Take Control of Your Coverage

Being denied Michigan homeowners insurance doesn’t mean you’re out of options. With programs like Michigan Basic Insurance, you can still protect your home. Take steps today to regain peace of mind and secure reliable coverage for your future. 🏡💪