What is the Michigan Basic Property Insurance Association and how can it help me?
The Michigan Basic Property Insurance Association is a non-profit non-governmental association formed by the Legislature in 1968 to provide home insurance to Michigan consumers who cannot obtain coverage from private insurers. It will accept most people who pay the premium that it charges; however Chapter 29 of the Michigan Code allows it to refuse certain applicants based on their risk background. A person who is statutorily eligible for coverage with private insurers can also obtain coverage with the Michigan Basic. Its HO-2 rates are an average of the top ten home insurers in Michigan. Its HO-3 rates and commercial property rates are not based on statutory formulas, so it uses a firm that provides actuarial services to help determine the appropriate rates for these coverages. Because it insures a higher percentage of people who would be ineligible or more risky for private insurers, its rates for many consumers may be higher than rates for comparable coverage with a private insurer.
