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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Michigan: average premium, 2023 $1,110 a year in Michigan vs. $1,737 countrywide · 47th highest of 51 · All states (HO-3 policies; NAIC)

Michigan's market right now

Storms in 2026. DIFS issued claim guidance after "the deadly tornadoes that touched down in southwest Michigan" in March 2026, and again on April 17, 2026, after statewide flooding and tornadoes, when the State Emergency Operations Center was fully activated over flooding at the Cheboygan Lock and Dam Complex. DIFS reminded residents that "most homeowners and renters insurance policies do not cover flood damage," but that "the term 'flood' may have a specialized meaning under their insurance policy," and water damage from causes such as "storm-related rainwater intrusion, sewer backup, or failing sump pump" may be covered.

Aerial images (June 2025). DIFS Bulletin 2025-12-INS told homeowners insurers that "Mere cosmetic roof issues, such as discoloration or streaking, are not valid grounds for policy cancellation or nonrenewal." If an insurer uses aerial imagery to cancel or nonrenew, DIFS says it should tell you so, give you copies of the images, and let you challenge them or update the insurer's information.

Price optimization ban (September 2026). Governor Whitmer signed Senate Bill 1013, which DIFS says "prohibits insurance companies from using price optimization, or the practice of varying premiums based on a customer's willingness to pay more." DIFS says it reviews homeowners rate filings for this practice.

Bills on storm-proofing (not law). On July 29, 2026, three Senate bills were introduced: SB 1128 (grants to help homes resist common weather-related perils), SB 1129 (require insurers to offer premium discounts in certain cases) and SB 1130 (require insurers to offer a fortified roof endorsement). As of Oct. 13, 2026, all three were in the Senate Committee on Finance, Insurance, and Consumer Protection. [11][12][13][14][15][16][17]

Your right to be insured: the Essential Insurance Act

DIFS says "The Essential Insurance Act guarantees that auto and home insurance will be available to most Michigan citizens." Under the law, you are an "eligible person" for home insurance if you own and live in, or rent and live in, a house, condo unit, co-op unit, room or apartment, or own and live in a building of up to 4 units.

An insurer "shall not refuse to insure, refuse to continue to insure, or limit the coverage available to an eligible person for home insurance, except in accordance with underwriting rules" allowed by the law. Those rules must be in writing, filed with DIFS, and applied "uniformly and without exception throughout this state." DIFS puts it this way: "you cannot be denied insurance solely because of the age of your house, its location, or the type of neighborhood you live in."

You can lose eligible-person status, and be turned down, if, for example:

- in the past 5 years you were convicted of arson or certain related crimes, or an insurer successfully denied your home insurance claim because of arson or fraud; - the home is used for an illegal or "demonstrably hazardous" purpose; - you refuse to buy at least 80% of replacement cost on a replacement cost policy, or 100% of market value on a repair cost policy; - your home insurance was canceled for nonpayment in the past 2 years (unless you pay the full premium up front); - the insured value is under $15,000 for a repair cost policy, or under $35,000 (or another amount the insurance director sets by rule) for a replacement policy; - the home has physical conditions that "clearly present an extreme likelihood of a significant loss"; - property taxes on the home have been delinquent for 2 or more years.

If a company turns you down, it or the agent "shall inform the applicant of each specific reason for the declination," in writing if you applied in writing. DIFS says that if you think the reasons are unfair, "you are entitled to a private, informal conference with a management representative of the company," and after that the matter "can be reviewed by" DIFS. [1][2][4][8][18]

If your insurer cancels or won't renew

Notice. A termination (a refusal to continue to insure, for reasons other than nonpayment) is not effective unless the insurer, "at least 30 days prior to the date of termination," delivers or mails you written notice that states "the effective date of termination and each specific reason for the termination." Exceptions: a notice sent in the first 55 days after a policy is first issued can take effect in as little as 20 days, and a cancellation for nonpayment takes effect "as provided in the policy." The termination must also match the insurer's own underwriting rules.

DIFS adds that your company "must also explain in writing how to apply to the MBPIA" when it cancels or won't renew. (DIFS publication, April 2020.)

Allowed reasons. Michigan law lists the only grounds an insurer's home insurance underwriting rules may use. They include the home's physical condition (under objective rules tied to a housing, safety or similar code, "without regard to the age of the structure"), being unoccupied more than 60 days with intent to keep it vacant, a new adjacent physical hazard, underinsurance, a threat or assault on an insurer employee or agent, and claim history.

Claim history limits for nonrenewal. An insurer may nonrenew based on claims under the policy (liability claims excluded) only at these levels, which DIFS adjusts for inflation every six years. As of January 1, 2024:

- three paid claims in the past 3 years totaling $5,000 or more, not counting weather-related claims; or - three paid claims in the past 3 years totaling $6,600 or more, counting weather-related claims.

For renewals the law also allows rules based on claims from your own negligence, or on your failure, after written notice, to fix a condition tied to a paid claim.

Aerial images. DIFS says policies in force 55 days or more may be canceled or nonrenewed only for the reasons above, that cosmetic roof issues "are not valid grounds," and that if aerial imagery raises concerns, the insurer "should try to obtain accurate information through a physical inspection, if necessary."

Yearly notice of your rights. At least once a year, insurers must tell you that rating and underwriting information is available, including your right to appeal how the insurer applied its underwriting rules to you, to request an informal conference, and to file a complaint with DIFS.

See our nonrenewal guide for next steps. [1][3][5][7][13][19]

Last resort: the Michigan FAIR Plan (MBPIA)

DIFS says: "If you are unable to find insurance through a regular company, or can only find it at an extremely high price, you may want to apply to the Michigan Basic Property Insurance Association (MBPIA)." MBPIA was created by state law in 1968; every insurer that writes these lines in Michigan must be a member.

- You qualify if you own or rent and live in "qualified property": residential property that meets building code standards, isn't used for farm or business, and isn't used for illegal activities. - You apply through a licensed agent; MBPIA may inspect the home at no cost to you. - MBPIA sells homeowners (repair cost and replacement cost), renters, condo, dwelling fire and commercial policies, for one-year terms. - If it turns you down, you get a written explanation and what you must do to qualify.

Full details are on our Michigan FAIR Plan (MBPIA) page, or call MBPIA at (313) 877-7400. [4][5][9][20][21]

Discounts

Two bills introduced July 29, 2026, would add storm-related discounts: SB 1129 would require insurers to offer premium discounts in certain cases, and SB 1130 would require them to offer a fortified roof endorsement. As of Oct. 13, 2026, both were still in the Senate Committee on Finance, Insurance, and Consumer Protection. Michigan law does let an insurer offer a home insurance premium discount plan "for senior citizens in this state who are at least 55 years of age or older," if it applies it uniformly statewide. Ask your agent which discounts your company offers. [16][17][22]

Flood is separate

DIFS says: "Your regular homeowners insurance policy does not contain coverage for flood damage to your home and contents. In order to have coverage in the event of a flood, you must purchase an additional flood insurance policy." MBPIA's policies don't cover flood either. For flood zones and flood insurance, see our sister site FloodHawk. [23][24]

Where to get help

DIFS asks you to try the company first: speak with a company representative, give dates, amounts and facts, and if you still disagree, "ask them to provide a written response" listing the policy language or rules they relied on.

If that doesn't resolve it, contact DIFS's Office of Consumer Services:

- Phone: (877) 999-6442, Monday-Friday 8 a.m. to 5 p.m. - Online: file a complaint. DIFS also accepts a paper complaint form by mail, email or fax. - Email: DIFSInfo@michigan.gov [6][10][23]

Questions people ask