In order to provide insurance coverage to all qualified persons within the state, the Michigan Basic Property Insurance Association was created through the Insurance Code of 1956, Act 218.1956.
For those qualified persons who are unable to find coverage from the open, private market, Michigan Basic Property Insurance is especially designed. Up to a specific amount, the Michigan Basic Property Insurance policy is equivalent to the HO-2 policy adopted by regular companies.
The Method Of Qualification for Michigan Basic Property Insurance
Michigan Basic Property Insurance Policy can be obtained by any person who own or live on a property that meets the specifications of the Michigan Basic Property Insurance Association.
These qualified properties are residential properties that meet the building code standards specified by the Michigan Basic Property Insurance Association. For any residential property that is not used for farm or business reasons and is not used for illegal activities, the Michigan Basic Property Insurance policy offers coverage.
A representative from the Michigan Basic Property Insurance Association will review and inspect your property when you decide to purchase the Michigan Basic Property Insurance. Prior to letting you purchase the policy; this representative will assess your property and see to it that it meets the qualification needs of the Michigan Basic Property Insurance Association.
The cost of the assessment will be paid by the Michigan Basic Property Insurance Association. You will be in receipt of a written explanation giving the reason for the rejection of your application, if the representative from the Michigan Basic Property Insurance Association finds that your property does not meet the qualification needed.
In addition to that letter, you will also receive some steps that you need to take in order to qualify for the Michigan Basic property Insurance.
The Michigan Basic Property Insurance Policies
In general, the policies issued by the Michigan Basic Property Insurance Association are one-year policies. If the Michigan Basic Property Insurance Association deems it appropriate, these Michigan Basic Property Insurance policies are renewable on qualified property for the next two years devoid of another assessment.
Binders will be issued by the Michigan Basic Property Insurance Association on your property that does not qualify.
While you wait for an inspection, these binders issued by the Michigan Basic Property Insurance Association will insure your property for 60 days. In order to make your property qualify for Michigan Basic Property Insurance, you can also use the time afforded by the binders to take the steps needed.
The Michigan Basic Property Insurance Replacement Cost Policies
You can make use of the repayment cost policies, or homeowners insurance by means of the Michigan Basic Property Insurance Association. This policy by the Michigan Basic Property Insurance Association offers coverage for the cost of replacing, repairing, or rebuilding your property that is damaged.
By making use of the same kind and quality of materials, the Michigan Basic Property Insurance allows you to rebuild your damaged home. In order for you to purchase this type of policy, the Michigan Basic Property Insurance Association requires you to buy an amount of insurance that is equivalent to 80% of the replacement cost for your home.
The Michigan Basic Property Insurance Association Repair Cost Policies
Repair cost policy is another offering by the Michigan Basic Property Insurance Association. This type of policy by the Michigan Basic Property Insurance Association allows you coverage for reconstruction or repair of your damaged property.
You must buy an amount of insurance that is equal to the value of your property in order to get this type of policy by the Michigan Basic Property Insurance Association.
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