Getting Home Insurance in Detroit
Detroit homeowner’s insurance protects against financial loss from perils such as fire, severe weather, and burglary, including structural damage and property damage. Homeowner’s insurance will typically protect against loss to the structure on a replacement cost basis, and loss to the home’s contents including contents off-premises on an actual cash value basis. Remember, however, that replacement cost basis has to be selected and is not an automatic feature. Additional living expenses incurred due to loss from a covered peril will also be provided for items and services like food, shelter, and storage. Homeowner’s insurance also provides liability coverage to protect against lawsuits or claims if someone is injured or their property damaged due to your negligence.
Additional coverage may be purchased for expensive or rare items not covered by the contents portion of the homeowner’s policy, for debris removal, for extended liability coverage, and for additional replacement cost for the dwelling that guarantees full replacement cost of the house even if that amount is higher than the policy limit. Flood insurance is usually excluded from the standard homeowner’s insurance policy. The National Flood Insurance Program offers flood coverage for communities that adhere to its floodplain regulations. Flood insurance may also be purchased from your home insurance company — coverage will depend on your risk for flooding and your home’s structure.
Factors of Home Insurance Rates in Detroit
Rates in Michigan are regulated by state law on a competitive basis. Insurance agencies cannot communicate with other insurers about the rates they are setting and compete for business by offering a variety of rates and services. Insurance companies set the premium by estimating how much they will pay to repair or replace the home and its contents. Weather-related claims have increased in frequency, and consequently the premiums have increased as well. State law determines the factors insurance agencies use when underwriting a premium, including the type of housing construction, the age of the house and its physical condition, the history of insurance, its distance from fire protection, and the area where the house is located.
The crime rate in your area will affect the cost of your premium — the U.S. Federal Bureau of Investigation reported in 2010 that there were 47,787 property crimes in Detroit, which has a population of 899,447 inhabitants — 5,312 property crimes per 100,000 inhabitants. In 2010, there were 5,235 property crime offenses per 100,000 inhabitants in the United States. Your insurance company will determine your premium by the crime rate in your neighborhood.
Getting Home Insurance in CITY
Discounts may be applied to your premium for installing safety features, such as smoke detectors, fire, extinguishers, dead-bolt locks, and burglar alarms, for updating mechanical systems in your home like plumbing and heating, for multiple policies with the same company, for a new home, for a claims free history, and for a good credit score. Your credit score — based on your payment history, the number of credit lines you have open, any outstanding debt you may have, and the length of your credit history — will affect the cost of your premium and whether or not the insurance agency will provide you with a policy or renew an existing one.
You may be denied coverage if you have been found guilty of a crime related to a covered policy (arson, use of explosives, destruction of property) within the past five years, if a previous policy had been cancelled because of non-payment of the premium within the last two years, or if the value of the property you want to insure does not meet the minimum requirements for the type of policy you want to buy. You are entitled to written explanation if a company refuses to insure you. If you are unable to find insurance through a regular company, you may apply to the Michigan Basic Property Insurance Association (MBPIA).