🏡 Is Michigan Homeowners Insurance Required? A Complete Guide (2025)

Michigan does not legally require homeowners insurance, but if you have a mortgage, your lender will require it to protect their financial investment. Even if you own your home outright, having homeowners insurance is one of the smartest ways to safeguard your property and finances from disasters, lawsuits, and unexpected costs.

🛡️ What Does a Michigan Homeowners Insurance Policy Cover?

A standard Michigan homeowners policy typically includes two main coverage sections:

• Section I – Property Coverage
• Section II – Liability Coverage

Let’s break down what each section covers in more detail.

🏠 Coverage A: Dwelling

Coverage A: Dwelling encompasses the primary structure of your home, including any attached features such as garages and porches. It also protects building materials and supplies stored on your property for home repairs.

🛖 Coverage B:  Other Structures

Coverage B: Other Structures provides protection for detached garages, sheds, fences, and other standalone structures on your property. The coverage is usually restricted to 10% of the coverage for your primary residence.

🛋️ Coverage C:  Personal Property

Coverage C: Personal Property provides coverage for your belongings, including furniture, electronics, and clothing, regardless of their location worldwide. It also encompasses the possessions of your college-bound dependents.

⚠️ High-value items like jewelry, firearms, and collectibles may have caps unless you add a scheduled personal property endorsement.

🏡 Coverage D: Loss of Use

If a covered event (such as fire or storm damage) forces you out of your home for repairs, Coverage D (Loss of Use) covers additional living expenses like hotel stays and meals.

⚖️ Michigan Homeowners Liability Protection

💼 Coverage E: Personal Liability

This coverage covers any injury or property damage you cause to others. Examples include:

• Dog bites 🐶
• Pool accidents 🏊
• Slip-and-fall incidents on your property

Most policies offer a minimum of $100,000 in liability coverage, but $300,000 or more is often recommended.

🚑 Coverage F: Medical Payments to Others

Pays for minor medical bills if a guest is injured on your property regardless of fault. Typical limits start at $1,000.

💸 How Much Does Homeowner’s Insurance Cost in Michigan?

According to Insurance.com (2025 update), average annual Michigan premiums are

• $1,073/year for a $200,000 home
• Includes $100,000 liability and a $1,000 deductible

Your rate may vary based on:

• ZIP code and location risk (storms, theft, etc.)
• Coverage limits and deductibles
• Discounts (bundles, smoke detectors, alarms)
• Your home’s age, roof condition, and building materials

🔍 Tip: Review your coverage yearly to ensure you’re getting the best value and protection.

❌ What’s Not Covered by a Standard Michigan Homeowners Policy?

Standard exclusions include:

• Flood damage or sewer backups (requires separate policy)
• Damage from pests, mold, or wear and tear
• Business-related losses from home-based operations
• Belongings of boarders or roommates

✅ Ask about endorsements that can extend your coverage, like sump pump backup, identity theft, or equipment breakdown.

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

If traditional carriers deny coverage, visit our guide on What to Do If You Can’t Get Michigan Homeowners Insurance to learn about state-assisted options or high-risk pool alternatives.

🔗 Additional Resource

Visit the Michigan Department of Insurance and Financial Services for official updates and homeowner protection tools.

💥 Ready to Protect Your Home?

👉 Take the first step today:
🏠 Request your free Michigan homeowners insurance quote from a local expert