Michigan • Insurance non-renewal or spike
Your Michigan condo insurance spiked — ice dams, water exclusions, and no FAIR Plan
Michigan isn't a hurricane state, so its insurance pain is winter, water, and a missing safety net. A non-renewal or spike here usually traces to storm and freeze-thaw losses — and to coverage gaps you only find by reading the policy.
The short answer
Michigan premiums jumped ~22% in 2024–2025, master policies frequently exclude ice-dam and gradual water damage (the state's highest claim-denial category), and Michigan has NO FAIR Plan — so a non-renewed association goes to surplus lines. CondoSignal reads your master policy and HO-6 against the Michigan market. Free.Michigan at a glance
Premium rise
≈ +22%
2024–2025.
Water damage
Often excluded
Highest claim-denial category.
FAIR Plan
None
Non-renewals go to surplus lines.
Deductibles
Shift to owners
Over 5% blocks financing.
The water-damage gap
Ice dams and gradual water intrusion are a signature Michigan loss, and standard master and HO-6 policies frequently exclude or cap them unless a special 'open perils' endorsement is bought. Water damage carries the highest claim-denial rate in the state — so confirming your master policy actually covers ice-dam and water damage is a critical step, not a given.
No FAIR Plan
Michigan is one of the few states with no property FAIR Plan or insurer of last resort. So when standard carriers non-renew an association — increasingly common as premiums rose ~22% in 2024–2025 — the only option is the surplus-lines market, at higher cost and with broader exclusions. A surplus-lines master policy is a sign the standard market walked away.
Deductibles and financing
Michigan's Condominium Act leaves insurance allocation largely to the bylaws, which increasingly shift deductibles and repair responsibility onto unit owners. A master deductible over 5% of coverage can also block conventional financing. Reading the master policy against your HO-6 — and confirming loss-assessment coverage — is the only way to see your exposure.
Your rights in Michigan
Michigan leaves insurance allocation largely to the bylaws, and the association must carry master coverage on the common elements; there's no FAIR Plan backstop. None of this is legal advice — confirm against the Condominium Act and a Michigan-licensed broker.
What to check
- Confirm the master policy covers ice-dam and gradual water damage.
- Establish whether the master policy or your HO-6 changed.
- Check whether coverage moved to surplus lines.
- Find the master deductible and whether it shifts to owners.
- Confirm your HO-6 loss-assessment coverage.
- Check whether the deductible exceeds the 5% financing cap.
Sources
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Michigan-licensed professional.
Related guide
Michigan insurance risk — the full guide →This page answers what to do right now. For how insurance risk works in Michigan — the law, the process, and what to check before you buy or sell — read the full state guide.
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