Michigan FAIR Plan: what it covers, what it costs, who qualifies

Does Michigan have a FAIR Plan?

Yes. Michigan's FAIR Plan is the Michigan Basic Property Insurance Association (MBPIA), official site www.mbpia.com ↗. It exists as the insurer of last resort for property owners who can't get coverage in the standard ("admitted") market.

What does it cover?

MBPIA offers both basic property insurance and a full homeowners package — unusual for a FAIR Plan. Forms: HO-3 (Special Form, open-peril dwelling), HO-2 (basic form), HO-4 (renters), HO-6 (condo/co-op). Basic property: fire, lightning, extended coverage (windstorm/hail, explosion, riot, aircraft, vehicles, smoke), vandalism/malicious mischief. HO-3 covers all perils not specifically excluded including theft, liability, additional living expenses. Settlement options: actual cash value, replacement value, or repair/market value. Does NOT include flood or earthquake.

How much will it cover?

The current cap on a single dwelling policy is Not published on the plan's public website; must be verified against MBPIA's current Rules and Rates Manual or Plan of Operation. MBPIA offers standard HO-3 forms with replacement-cost options. No cap confirmed from primary sources. (Michigan Basic Property Insurance Association (MBPIA), verified 2026-05-11).

Who is eligible?

Available to property owners denied homeowners or basic property insurance by the standard admitted market and whose property meets minimum insurability standards. Eligible property: owner-occupied or tenant-occupied dwellings up to 4 units, condos, co-ops complying with state/local building codes; not used for farm, commercial, or illegal purposes. Owner cannot control more than 5% of aggregate statewide assessable premiums. Applicants with arson, fraud, or theft convictions within past 5 years are ineligible. No published fixed 'declined by N carriers' numeric test.

How do you apply?

Through a licensed Michigan insurance agent/producer. MBPIA does not sell directly to consumers. Any licensed Michigan P&C agent cannot refuse to assist with a FAIR Plan application. Agent search: mbpia.com/Agent-Search. MBPIA office: 27555 Farmington Road, Suite 315, Farmington Hills, MI 48334. Phone: (313) 877-7400.

Need a broker who writes the MI FAIR Plan? →

How much does it cost?

MBPIA rates are generally equal to or greater than private market rates. Because MBPIA offers a comprehensive HO-3 with liability and theft, the cost comparison differs from typical FAIR Plans. No bundling discounts, eco-friendly technology incentives, or multi-year claims-free discounts available.

What is changing right now?

Per III FY2024 reporting: approximately 16,274 policies in force, total exposure approximately $2.6 billion ($2,599,502,000). Michigan is among the larger FAIR Plans by policy count nationally. MBPIA launched a new policyholder portal. A 2025 DIFS Bulletin (2025-12-INS) clarified rules on use of aerial imagery in cancellations and non-renewals under MCL 500.2123(1) — insurer must notify homeowner, provide copies of aerial imagery, and allow a challenge period before acting.

Do you also need a wrap (DIC) policy?

Not typically needed — MBPIA's HO-3 already includes liability and theft, unlike most FAIR Plans. Michigan is unusual in that its FAIR Plan offers a comprehensive homeowners product rather than a stripped-down fire/EC policy. Flood is still excluded and requires a separate NFIP or private flood policy.

What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date — that's your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before going to the FAIR Plan. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a broker who writes the Michigan Basic Property Insurance Association (MBPIA). They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender — much more expensive and worse coverage.

For the full playbook see I just got a non-renewal notice →