Factors to consider when buying Michigan home insurance

Michigan boasts a rich architectural heritage with the majority of its homes dating back to the 1950s. These older residences exude grandeur and contribute to the charm of Michigan neighborhoods. However, they often come with outdated plumbing and electrical systems, aging roofs, and other surprises for homeowners. Just as in modern homes, Michigan residents must contend with the state's extreme weather conditions, particularly in regions like the Upper Peninsula and the Lake Michigan Snowbelt, where surprise freezes and powerful wind gusts can wreak havoc.

 

Heavy lake-effect snowfalls from the Great Lakes are no laughing matter. In short, safeguarding your home with the right homeowner's insurance coverage is crucial for every Michigander.

 

When considering a policy from Citizens Insurance Michigan, it's wise to be vigilant for offers. Shopping for home insurance might not be everyone's idea of fun, especially when you're unsure of what to look for. To help you navigate this process, we've compiled four tips to assist you in making informed decisions:

 

Get a CLUE When Buying a Home:

Request a copy of the CLUE (Comprehensive Loss Underwriting Exchange) report for the property you're interested in. This report provides a seven-year history of losses on the property, detailing when the losses occurred, the type of losses, and the amounts paid. Don't be swayed by a low premium; it's essential to ensure that the insurance company has a reliable track record, especially in the face of catastrophic events.

 

Assess Financial Stability and Reinsurance:

Check if your chosen insurance company has sufficient funds to cover claims and operate smoothly, particularly during catastrophic events or hurricane seasons.

 

Ensure Your Coverage Adapts to Changing Times:

Consider factors like Ordinance or Law coverage, which accounts for increased costs associated with complying with current building regulations during reconstruction. Additionally, emphasize alternative cost coverage, covering the cost to replace damaged items without depreciation deduction. While many companies offer Cash Value coverage, which considers depreciation, we recommend including Substitute Costs in your policy for comprehensive protection.

 

Understand What's Covered:

Homeowners Insurance in Michigan doesn't cover every risk your home faces. Common exclusions include floods, electrical failures, war, negligence, nuclear hazards, deliberate destruction, or defective materials. For additional coverage, such as flood insurance, consult your agent or explore options like the National Flood Insurance Program (NFIP).

 

In conclusion, making informed decisions when selecting insurance coverage is vital for protecting your vintage Michigan home. By following these tips, you can ensure your investment is secure and prepared for the challenges posed by both time and unpredictable weather conditions.

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