Michigan home insurance is not required by law. However, you may need to purchase home insurance if you are financing your home, as the lender will want to protect its own interests. Lenders will normally have stipulations about home insurance in your loan agreement.
There are several types of policies typically offered, the three main types of policies are:
Broad (HO-2) which covers specific damages listed in the policy.
All Risk (HO-3) which covers all risks except those specifically mentioned.
Renters (HO-4) which covers the renter’s personal property, but not the house or apartment.
Condominium (HO-6) which is like a renter’s policy, but it also covers the part of the home that belongs to the condominium owner.
Each of these policies can normally have additional attachments, stipulations, riders, or extended protection possibilities, that should be asked about when purchasing insurance.
Each policy has individual coverage points, that should be read carefully during the purchasing process. You’ll want to ensure that you get the right amount of protection for your needs. Again, there are additional points that aren’t normally covered in a standard policy and that require additional charges.
Every insurance company will have their own set of metrics, in which they use to calculate your rates and premiums. Some of the factors that can influence your premium are:
Home’s age and condition.
Your claim history.
Availability of emergency services.
The material used in the construction of the home.
The location of your home.
Each of these things can affect your premium negatively or positively. When purchasing Michigan home insurance, you should ask if there are ways to reduce your premium, as most companies do offer limited discounts. Even if you don’t qualify for the discount immediately, you should know when or how you can qualify, so that in the future, you can be proactive and save yourself some money. However, paying the highest deductible you can afford, typically lowers your premium, no matter what insurance company you choose.
When purchasing home insurance, the goal shouldn’t be to find the cheapest available option. The goal is to find the perfect coverage, in case the worst does happen. If your home were to burn down, you’re better off knowing your insurance will cover all the costs of rebuilding, instead of half the price.
This means reading carefully and fully understanding all the terms and conditions in your insurance agreement, before actually signing anything.