Costs & insurance
Homeowners insurance
A policy covering damage to your home and belongings and liability on your property. Lenders require it, and it's collected through escrow as part of your monthly payment.
What does homeowners insurance mean?
Homeowners insurance protects the home securing your mortgage, so lenders require it and typically collect it monthly through escrow. Coverage pays to repair or rebuild after events like fire or storms and provides liability protection. In Michigan, factors like proximity to a lake, an older roof, or a home's age affect the premium, and lakefront properties may need separate flood coverage that materially changes the monthly cost. Shop it separately from your mortgage — the policy is yours to choose, and premiums vary widely between carriers for the same house.
Common questions
Why do lenders require homeowners insurance?
It protects the home securing their loan. They require it and usually collect the premium monthly through escrow so coverage never lapses.
What affects my Michigan insurance premium?
The home's age and roof, proximity to water, claims history, and coverage limits. Lakefront properties may need separate flood coverage that raises the cost.
Can I choose my own insurer?
Yes — the policy is yours to shop, and premiums vary widely between carriers for the same house, so compare before closing rather than taking the first quote.
Related terms