Homeowners insurance, built for Michigan homes

What does homeowners insurance typically cover?

A homeowners policy covers the structure of your home, other structures such as a detached garage, your personal belongings, additional living expenses if you must live elsewhere after a covered loss, and personal liability if someone is injured or their property is damaged. Each part has its own limit and its own exclusions. The details that decide a claim are how each part is valued, which causes of loss are excluded, and which special limits apply.

How much homeowners coverage do I need?

You need enough dwelling coverage to rebuild the home at today’s construction costs, which can be quite different from its market value or purchase price. Rebuild cost depends on square footage, construction quality, custom features and local labor and material prices, so it should come from a replacement-cost estimate updated every year or two. Extended or guaranteed replacement cost adds a cushion above the limit for the cost spikes that follow regional disasters.

Points to confirm on any high-value home:

• Replacement-cost estimate reflects custom millwork, stone, slate or tile roofs, and high-end systems.
• Building code upgrades (ordinance or law) are covered at a meaningful limit; older homes often need them after a loss.
• Cash-settlement option, so you are not forced to rebuild the same house on the same lot.
• Liability limits match your umbrella carrier’s underlying requirement.

Is flooding covered by homeowners insurance?

No. Standard homeowners policies exclude flood — rising surface water from rivers, lakes or heavy rainfall. Flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally take 30 days to become effective. Water that backs up through a sewer line or sump pump is a separate exclusion and needs its own endorsement.

Michigan homes most often see water damage from:

• Sump pump failure and sewer backup during spring thaw and summer storms. Covered only by endorsement, and default limits are often too low for a finished basement.
• Frozen and burst pipes, covered if reasonable care was taken to maintain heat or shut off and drain the water.
• Ice dams, where interior water damage is commonly covered but the roof repair and gutters may be treated differently.
• High Great Lakes water and shoreline erosion, which homeowners policies generally do not cover.

See our Flood Insurance page for NFIP and private flood options.

How are lake homes, cottages and secondary homes insured?

Secondary and seasonal homes are insured on their own homeowners or dwelling policy, written for a home that is not occupied year-round. The key terms are how long the home can sit vacant or unoccupied before coverage narrows, what freeze precautions are required, and whether occasional rental use is allowed. Every secondary home also needs to be listed under your umbrella, or the umbrella may not respond to a claim there.

What we check for cottages and second homes: remote temperature and water-leak monitoring (often a premium credit), automatic water shutoff valves, docks and boat lifts, guest and short-term rental use, and whether the caretaker or property manager has their own liability coverage.

What extra coverages matter for a high-value home?

Beyond the basic policy, high-value homes usually need water backup at a meaningful limit, equipment breakdown for home systems such as boilers, HVAC and generators, service-line coverage for buried water and sewer lines, and scheduled coverage for jewelry, art and collections. Identity-fraud expense and home cyber coverage are increasingly offered by private-client carriers. Each addition closes a specific, common gap rather than adding general “more coverage.”

How often should I review my homeowners policy?

Review your homeowners policy every year, and any time you renovate, add a pool or outbuilding, make a major purchase, or change how the home is used. Renovations are the most common source of underinsurance, because the rebuild cost rises while the policy limit stays the same. An annual review also catches changes in wind/hail deductibles and new exclusions introduced at renewal.