Do I have to carry homeowners insurance?
Not by law, but lenders require it. If not maintained, they may impose force-placed insurance which provides less coverage and often costs much more than a standard policy.
What types of policies are available?
- HO-2 (Broad/Named Peril)
- HO-3 (All Risk)
- HO-4 (Renters)
- HO-6 (Condo)
- Mobile Home and Farm/Country Estate policies
What are the settlement options?
- Replacement Cost
- Repair Cost
- Actual Cash Value
Can I be denied coverage?
Michigan law requires insurers to accept all eligible applicants. You can be ineligible based on reasons like past fraud, arson, unpaid taxes, market value issues, or unsafe property conditions. See your Independent Agent if you have any questions about eligibility.
What if I can’t get coverage?
Anyone in Michigan, whether declined by a standard insurance company or not, can apply for coverage through the Michigan Basic Property Insurance Association (MBPIA).
What is the Paid Loss Surcharge, and how could this impact the cost of my premium?
Less than 1% of Homeowners policyholders have any kind of loss. For those policyholders that have two or more non-weather-related claims in a three-year period, a Paid Loss Surcharge This is a common rating element most carriers use and is permissibly under Michigan’s Essential Insurance Act.
Will my Homeowners policy cover my home if I am not currently living in it?
(Examples: it is for sale, I’m away on a long-term vacation, or I’m renting it to another person/family)
For your Homeowners policy coverage to apply, you must be living in the home. Should your home become vacant (Examples: it is for sale, you are away on a long-term vacation, or you rent it to another person/family), it is important that you immediately notify your Independent Insurance Agent. They will help you determine the best policy for the current use of your home. Failure to notify your agent or Pioneer State Mutual that you are not currently occupying your home will jeopardize your coverage for this property should a loss occur.
For more details on the provisions, conditions, coverages, and exclusions of your Homeowners policy as it relates to your occupancy, please refer to your Pioneer State Mutual Homeowners Policy or contact your Independent Insurance Agent.
Can I get insurance coverage for my home electronics, mechanical equipment, and major appliances?
Many insurance companies offer an endorsement that covers home electronics, mechanical equipment, and major appliances. For example, Pioneer State Mutual policyholders can add the “Equipment Breakdown Endorsement” to their homeowner’s policies. With this coverage, Pioneer will cover “sudden and accidental failure” for equipment such as air conditioning units, refrigerators, media electronics, and outside yard maintenance machinery up to a specified limit.
Please be reminded, normal wear and tear is not part of this coverage.
Can I purchase Flood Insurance from Pioneer State Mutual?
Pioneer State Mutual does not offer Homeowner’s Flood coverage at this time. Flood insurance can only be purchased through the National Flood Insurance Program.
What is Inland Marine? Should I have this coverage for any of my personal belongings?
The title “Inland Marine” can lead people to believe this coverage is just for boat owners. While boats may fall into this category, Inland Marine goes beyond boats to cover specific valuables such as jewelry, cameras, musical instruments, fine arts, computer systems and more.
Inland Marine insurance provides coverage for specific items not covered in the basic property policy, broader coverage and/or to increase coverage limits for certain valuables, or may allow an insured to select a lower deductible on certain items.
What is the “Backup of Sewers or Drains” endorsement?
The standard Homeowners Insurance policy excludes coverage for the backup of sewer/drain lines, as well as the failure of a sump pump, companies like Pioneer State Mutual offer a “Backup of Sewers or Drains” endorsement.
When sewers and/or drains back up, normally damage occurs in the basement, which houses the mechanical systems of the house, such as washers and dryers, furnaces, hot water tanks and the numerous items people store there. Water or sewage usually destroy anything they come into contact with, so having this type of endorsement could prevent you from paying for the entire incident out of your own pocket.
How much would I receive for a claim if my property is damaged or lost?
(Actual Cash Value vs. Replacement Cost)
The amount you would receive for a claim depends on the true value of the damaged/lost item and whether you plan to replace the covered item. The following is an example of the difference between “Replacement Cost” and “Actual Cash Value”:
- Replacement Cost: A necklace that you have scheduled on your insurance policy is stolen, and you choose to replace that necklace with the same necklace. Under your insurance policy, you would likely receive the “replacement cost” of the necklace (the amount of money you would need to go to the jewelry store and buy the same necklace), up to the limit specified in your insurance policy.
- Actual Cash Value: If the scheduled necklace is stolen and you do not want to replace it but would just like the money from the insurance coverage, you will receive the “actual cash value.” This is the amount of money that particular necklace would currently be worth based on its age (depreciation), condition and what the current “going rate” for that necklace would be if it were being sold at the time of the claim.
This video explains the process by which we issue claims checks for damaged/lost property.
I live in a Condo where the Association has insurance. Do I need my own insurance?
While your condo or co-op association may cover the outside of your home and their property, they do not cover the inside property or contents, so it is important to have your own insurance coverage for your personal belongings.
I’m renting and my roommate has insurance. Do I need my own insurance?
You do need your own coverage. Your roommate’s insurance will only cover their own personal belongings. Likewise, the landlord’s insurance will only cover the building/structure and not your personal possessions. Renters insurance is very affordable and is highly recommended.
Does a college student need insurance for their belongings while away at college?
If the student is a permanent resident of the insured home, is a full-time student, and has been at the student housing location at any time during the 45 days immediately before the loss, then they do not need insurance for the belongings. In this case, the belongings would be covered under the Homeowners insurance where the student is a permanent resident (Example: their parent’s Homeowners insurance would cover their belongings if the student lives with their parents when not at school).
A good rule of thumb is that a freshman or sophomore college student living in a dorm usually gets coverage from their parents’ homeowners policy. A junior or senior living in off-campus housing generally needs their own policy.