Whether you're buying insurance for the first time or reviewing your existing coverage, the same questions come up again and again. Michigan's unique no-fault auto system, brutal winters, and abundance of lakes create coverage situations you won't find in many other states. Below, our Michigan-licensed agents answer the 25 questions customers ask us every single day — in plain language, without the jargon.
Homeowners Insurance
1. Does my homeowners policy cover flood damage?
No — and this is one of the most costly misconceptions in insurance. Standard homeowners policies (HO-3 and all other HO forms) specifically exclude flooding, surface water, storm surge, and overflow from lakes and rivers. To be covered for flood, Michigan homeowners must purchase a separate flood policy through the National Flood Insurance Program (NFIP) or a private flood insurer. Even if you don't live in a designated flood zone, flooding can happen.
2. Am I covered if a tree falls on my house?
Yes, in most cases. If a tree falls and damages your home due to a covered peril like windstorm, your homeowners policy will pay to repair the structure under Coverage A — subject to your deductible. Most policies also include a sublimit (typically $500-$1,000) for debris removal. If a neighbor's tree falls on your home, your own policy still pays first. You'd only have a claim against your neighbor if they were negligent (e.g., the tree was visibly dead and previously reported).
3. Does homeowners insurance cover mold?
It depends on how the mold got there. Mold resulting from a sudden and accidental covered peril — like a burst pipe — is generally covered. But mold caused by long-term moisture problems, poor maintenance, or a slow undetected leak is considered a maintenance issue and is excluded. Some policies offer a limited mold remediation endorsement (typically $5,000-$10,000).
4. Does homeowners insurance cover sewer backup?
Not automatically — and this is a major coverage gap in Michigan. Standard policies exclude damage from water or sewage that backs up through drains and sewers. This is one of the most commonly purchased endorsements in Michigan, where aging combined sewer systems cause frequent backup events. Coverage typically runs $50-$150 per year — a small cost compared to a $15,000 basement cleanup.
5. Is my home-based business covered under my homeowners policy?
Generally, no. Standard homeowners policies either exclude or severely limit coverage for business activities at the home. Business equipment may be subject to a small sublimit (often $2,500) and business liability is typically excluded entirely. If you run a home-based business — day care, photography, consulting, online retail — you need either a home business endorsement or a separate businessowners policy (BOP).
6. Is my jewelry covered under my homeowners policy?
Only to a limited extent. Standard policies include sublimits — typically $1,500 for theft. An engagement ring worth $8,000 would be dramatically underinsured. Schedule valuable items individually with a jewelry floater for full appraised value coverage with no deductible.
7. How much homeowners insurance do I actually need?
Insure for replacement cost — not market value or assessed value. An older Michigan home with a market value of $150,000 may cost $220,000 or more to rebuild at current construction prices. Insure to at least 80% of replacement cost to avoid a coinsurance penalty.
Auto Insurance & No-Fault
8. Michigan is no-fault — do I still need liability insurance?
Yes, absolutely. Michigan minimums are $50,000/$100,000 BI and $10,000 PD. Without liability insurance, you're personally responsible for damages you cause to others, and driving without required insurance in Michigan is a misdemeanor.
9. What PIP level should I choose in Michigan?
Your health insurance situation determines the right answer. Unlimited PIP is best for those without strong health coverage. $500,000 or $250,000 work if you have comprehensive employer group health. $50,000 is only available if you're on Medicaid. PIP Opt-Out requires Medicare Parts A and B. A serious auto injury can generate millions in lifetime medical costs — never choose a lower PIP limit without confirming the client has qualifying health coverage to fill the gap.
10. Does my auto insurance cover hitting a deer?
Yes — but only if you carry comprehensive coverage. Deer strikes are covered under comprehensive, not collision. Michigan is consistently in the top 10 states for deer-vehicle collisions. If you swerve to avoid a deer and hit a guardrail or tree, that's a collision claim, not comprehensive.
11. What is gap insurance and do I need it?
Gap insurance covers the difference between what your insurer pays for a totaled vehicle and what you still owe on the loan or lease. New vehicles depreciate 15-25% in the first year. Recommended for clients who financed with a small down payment, have a long loan term, leased, or purchased a model that depreciates quickly.
12. Does my auto policy cover me if someone else drives my car?
In Michigan, auto insurance generally follows the vehicle, not the driver. If you give someone permission to drive your car, your policy is primary. Household members must be listed on the policy or explicitly excluded. Lending to someone with a suspended license or intoxicated person could give the insurer grounds to deny the claim.
13. Will a traffic ticket raise my insurance rates?
It depends on the type of violation, the carrier, and your prior record. Minor violations may have no impact after a first offense. Serious violations — excessive speeding, reckless driving, DUI — typically result in surcharges of 20-50% or more.
14. Am I covered if I drive for Uber or Lyft?
Your personal auto policy will NOT cover you while actively working as a rideshare driver. Add a rideshare endorsement to close the Period 1 gap (app on, waiting for ride). The TNC's commercial policy covers Periods 2-3 (ride accepted through drop-off).
15. Does my auto insurance cover a rental car?
Generally yes — but only to the extent of your existing coverages. If you carry only liability, physical damage to the rental would not be covered. The rental company's Collision Damage Waiver (CDW) is not insurance — it's a contract waiving their claim against you.
Renters & Landlord Insurance
16. Does renters insurance cover my roommate's belongings?
No. A renters insurance policy (HO-4) covers only the named insured and resident household members related to them. An unrelated roommate — even one on the lease — needs their own separate policy.
17. Does renters or homeowners insurance cover my laptop if stolen outside my home?
Yes, with limitations. Personal property coverage extends to belongings stolen away from home. Standard policies pay actual cash value (depreciated). Electronics from a vehicle may be subject to sublimits.
18. Does my landlord policy cover my tenant's belongings?
Absolutely not. A landlord policy covers the building, the landlord's furnishings, the landlord's liability, and lost rental income — never tenants' personal property. This is why many landlords require renters insurance as a lease condition.
19. Am I covered if my dog bites someone?
Yes, in most cases — but breed restrictions apply. Homeowners liability includes dog bite coverage. The average claim exceeds $50,000. Many Michigan insurers have breed exclusions (pit bulls, Rottweilers, Dobermans, German Shepherds, and others).
Umbrella Insurance
20. Do I really need an umbrella policy if I already have high liability limits?
Yes — and it costs far less than most people expect. A personal umbrella provides $1 million or more in additional liability above your auto and home limits for $150-$300 per year. In today's litigation environment, a serious auto accident, pool injury, or significant dog bite can easily exceed $300,000.
Seasonal & Specialty Vehicles
21. Am I covered year-round even if I only use my boat, motorcycle, or RV seasonally?
It depends on how the policy is structured. Many seasonal vehicle policies offer a lay-up provision that suspends collision and liability during the off-season. Physical damage coverage must be active when the vehicle is being used.
Insurance Policy Basics
22. What is the difference between ACV and replacement cost?
The most important valuation concept in insurance. ACV pays the depreciated value. RCV pays what it costs to replace the property with a new equivalent at today's prices, with no depreciation deduction. A 10-year-old roof damaged by hail: ACV might pay $4,000 after depreciation; RCV would pay $14,000 to install a new roof.
23. What happens to my claim if my damage doesn't exceed my deductible?
If total damage is at or below your deductible, the insurer pays nothing. Filing a claim — even with no payment — creates a record in the CLUE database that can affect your renewal premium. Self-insure small losses whenever possible.
Have more questions or want an independent agent to review your current coverage? Our team has answered thousands of Michigan insurance questions since 1981. Michigan auto insurance, home insurance, workers compensation — we cover it all. Get a free comparison quote or contact us directly.
24. What is subrogation and how does it affect my claim?
Subrogation is your insurer's right to recover claim payments from a responsible third party. If a negligent contractor causes a fire at your home, your insurer pays your claim then pursues the contractor. Do not independently settle with a responsible third party and release them from liability — it can eliminate your insurer's subrogation rights.
25. What is the difference between cancellation and non-renewal?
Cancellation terminates the policy before its expiration date. Non-renewal means the insurer declines to offer coverage for the next term. In Michigan, mid-term cancellation is permitted only for nonpayment (10 days written notice), fraud, or statutory grounds. Non-renewal requires at least 30 days advance written notice under MCL 500.3220.