Understanding Detroit Homeowners insurance

Michigan homeowners  insurance is broken up into 2 sections, Section 1 covers Property coverage and section 2 covers Liability.

Section 1 of a Detroit homeowners insurance policy is composed of four basic areas

Dwelling – Coverage A – this provides protection to the structure of your home.  It includes coverage for structures attached to the home such as an attached garage and materials and supplies (to be used for construction, alteration or repairs of your dwelling or attached structures) located on or next to your premises.

Other Structures – Coverage B – The insurer covers other structures on the residence premises that are detached from the main structure.  A detached garage or utility shed would qualify for this coverage.  However, structures that are used as part of a business (auto repair out of a garage) or rented to a person who is not a tenant of the dwelling (guest house) will not be covered. Coverage will be 10% of Coverage A.

Personal property – Coverage C – An insurer will cover personal property owned or used by an insured anywhere in the world.

a)      The insurer will cover at the insured’s request personal property owned by others while the property is located at the insured property this will cover a fiancé or roommate.

b)      The insurer will limit personal property coverage to at least 50% of the Coverage A limits, but higher limits can be obtained this amount will vary between insurance companies but must  be at least 50%.

c)       The insurer will cover 10% of the limit of Coverage C for personal property at location other than the primary residence such as storage facility, but there is no limitation for personal property that is moved to a new residence for the first 30 days.

d)      Property of dependent college students is covered.

There are special limitation on certain personal property items such as jewelry, money, securities and firearms.  You need to check with a local Detroit homeowners agent to discuss what items are limited or not covered under personal property section.

There are additional coverage that are provided by Section 1 that have different limitations that may apply (debris removal, trees, shrubs and other plants damage, fire department service charge, 30 days of property coverage for property removed because of a loss and credit card losses, but usually limited to $500). Check with your local Detroit homeowners agent to find out what may apply.

Loss of Use – Coverage D – if the primary structure is not livable due to a covered loss, the insurance company will provide the insured with either additional living expense. Additional living expense is a necessary increase in living expenses that an insured has in order to maintain their normal standard of living.

Section 2 of a Detroit homeowners insurance policy is made up of 2 basic areas

Personal Liability – Coverage E- Coverage is provided to an insured under this section if a claim is made or a suit is brought against the insured for damages due to an injury or damage to property of others.

a)      This coverage also covers the cost of defending you in any suit for damages and also pays for the cost of the defense in addition to your liability limit even if the suit is false or fraudulent.

b)      The basic limit of liability available is $100,000, but additional limits may be purchased discuss with your local agent to see what limits are right for you.

c)       Examples of liability claims would be your dog biting someone, if you own a pool and someone drowned, or someone who is injured on your property.

Medical payments to others – Coverage F- Under this coverage the insurer will pay medical expenses to others for necessary medical expenses incurred or medically ascertained within 3 years from the date of accident or injury.  This coverage does not apply to the insured or regular residents of the household and is limited to $1000, but additional limits can be purchased.

There are additional section coverage’s that are also provided by section 2 (Claims expense, First aid and damage to property of others). Different limits may apply and you need to check with your local insurance agent to see what may be covered.

What is not covered on Detroit homeowners insurance policy.

This is a list, but not all inclusive of Section 1 property loss or damage exclusions.

a)      Flood or back up of sewer or drain.

b)      Earthquake or earth movement

c)       War or nuclear hazard

d)      Vehicle damage to home caused by insured(covered under auto policy)

e)      Pets, insects, or animals

f)       Property of roomers or boarders

This is a list, but no all inclusive of Section 2 liability for injury or damage exclusions.

a)      Intentional injury to others

b)      Property owned by insured( you can’t sue your own company for damage to your property)

c)       Liability from war or acts of war

d)      Liability from a contract

e)      Liability covered by workers compensation

f)       Business activity

g)      Personal injury damages, from losses by libel or slander.

In some cases you may be able to purchase an endorsement to your Michigan homeowners insurance  policy or buy an additional policy to cover items that are excluded on your homeowner’s policy.  If you can’t get Michigan Homeowners insurance go to What to do if you can’t get Detroit homeowners insurance  to see what your options are.