Home Insurance in Michigan: Basic Facts You Must Know about Coverage


Other than the type of siding you’ll install and the furniture you’ll place in your home office, there’s another very important thing your house needs—insurance. Home insurance in Michigan may not contribute to the overall aesthetic appeal of your home, but it does guarantee that when certain unfortunate events befall your lovely abode, you’ll have financial assistance and a solution, not a big hole in your pocket.


Categories of Covered Property

Insurance companies typically have four separate categories for covered properties, namely dwelling, personal property, other structures, and loss of use. Basically, dwelling encompasses the structure of the house and other attachments or additions to the house, such as a detached garage and a tool shed. The contents of your home (i.e. furniture, appliances, etc.) fall under personal property, but take note that some items may not be covered. Finally, loss of use mainly concerns additional living expenses in case a loss occurs due to a covered peril and the house becomes temporarily uninhabitable.

Open Perils vs. Named Perils

As you read through various Michigan homeowners insurance policies, you’ll notice the terms “named perils” and “open perils”. Named Perils policies specifically enumerate the threats or risks covered, whereas an Open Perils policy lists everything excluded from the coverage, be it water damage, war, power failure, nuclear hazard, etc.

What May Not Be Covered

In an article published at FoxBusiness.com, Chris Kissell writes about six things home insurance won’t cover: mold, sewer backup, sinkholes, termite infestation, nuclear plant accidents, and acts of terrorism. Although the last few scenarios may seem unlikely, be sure to check your home insurance coverage and see that you have enough.

Customized Policy

When searching for home insurance in Michigan, it’s always a smart move to work with an experienced company like Allied Insurance Managers, Inc. that provides clients with customized policies. Such a firm sees to it that clients get the right combination of price and coverage—something every sensible homeowner would want. Make sure your needs are assessed by the insurance agency you’ve chosen—which is, after all, a necessary step for them to provide you with the best policy possible.

(Source: 6 Things Home Insurance Won’t Cover, FoxBusiness.com)

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Allied Insurance Managers's Bio

Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.