Michigan Homeowners Insurance
Michigan homeowners insurance can help you protect one of your largest investments, your home. If you own a residence in Michigan, you should consider purchasing homeowners insurance to provide security for your family in the event of an accident. There are many types of Michigan homeowners policies available to fit the needs of an owner. If the house is under mortgage, the lender probably has specific coverage requirements that you will need to consider. No matter what the lender requirements are, it is prudent to purchase enough Michigan homeowners insurance to cover the replacement of your residence in case of an accident.
Understanding Replacement Costs
Homeowners insurance in Michigan comes in two basic categories, replacement cost coverage, or actual cash value coverage. In a replacement cost scenario, your residence is covered for the price of materials and labor to replace the dwelling in the event it was damaged in a fire or other catastrophe.
Actual cash value coverage will provide you fair market value of your house. In other words, if the house were damaged beyond repair, a replacement cost house insurance policy would pay you the cost to rebuild the home minus your deductible while an actual cash value policy would pay you what the home's current market value would be if you were to sell it. It is wise to purchase the cash value coverage to be able to receive the full amount of the home's worth in the event of a total loss.
Most basic Michigan homeowners insurance policies would cover the dwelling, contents, loss of use, and personal liability. Each item has a limit to the amount covered as well as the perils or risks. Many Michigan homeowners insurance policies do not cover for natural catastrophes such as earthquakes, landslides, or floods. These items must be covered under a separate Michigan homeowners endorsement such as hazard insurance.
Hazard insurance is for specific perils that are not otherwise covered under a basic Michigan homeowners insurance policy. If the home is susceptible to flooding, for instance, you may want to add flood insurance to the coverage. If you do not add this provision, and the home incurs flood related damages, you may not be covered. The same would apply for earthquakes or other natural disasters excluded from the basic coverage. Read the homeowners policy carefully for exclusions that need to be added under an endorsement.
Other endorsements that an owner may want to consider would be increases on the limits of the policy. A policy limit is the amount an insurer will pay in the event of damage. If you have a home business, you may want to increase the policy limits to include full replacement costs for the items you have in the home. These could include computers, tools, or other items that might be used for a business. You can also increase limits for collection items such as coins or expensive jewelry.
If you do own extremely valuable items, you can also add endorsements to increase the perils covered for those items. This might include loss or theft. For instance, if the diamond from a ring were lost, this endorsement would cover to have the stone replace. It would also cover the replacement cost if the ring were to be stolen.
There are many ways to lower Michigan homeowners insurance premiums. One of the easiest is to raise the deductible. A deductible refers to the amount you will be responsible for in case of damage. For example, if the damages to a home totaled $15,000 and your deductible was $500, the insurer would pay $14,500 and you would be responsible for the remaining amount. By raising the deductible, you will realize excellent savings on premiums.
Another excellent way to decrease the premiums for Michigan policies is to consider putting all of your insurance needs under one provider. By adding your vehicle, boat, and other insurances under one provider you will receive a multi-policy discount, which gives you savings across all of the policies. You can save hundreds of dollars by taking advantage of a multi-policy discount in Michigan.
Other premium savings ideas include adding burglar or fire alarms to the home, putting deadbolt locks on all exterior doors, and adding fencing around the property. Any additional items that increase the safety and security of the home may be eligible for discounts. Talk to a Michigan homeowners insurance provider for other cost savings ideas.
Michigan homeowners insurance can easily be obtained by shopping online for top providers in your area. You can request quotes, compare rates, and even purchase Michigan homeowners insurance from the comfort of your living room. Whether you own a house in Detroit, MI, or a home in Grand Rapids, MI, you can start saving on your homeowners policy today by shopping online.