Fire Insurance Withholding Maximum Escrow

Sections 2227 and 2845 of the Michigan Insurance Code, 1956 PA 218, MCL 500.2227 and 500.2845, allow municipalities which participate in the fire insurance withholding program to escrow 25% of fire insurance settlements for losses to real property within the boundaries of the municipalities that meet certain established criteria. Beginning January 1, 2017, for residential property, the 25% settlement subject to escrow shall not exceed a maximum amount of $12,262, which shall be adjusted annually, in accordance with the consumer price index (CPI).

The new fire insurance maximum withholding amount effective

January 1, 2017 through December 31, 2017 is $12,262

The maximum assignment levels for recent years are as follows:

January 1, 2016 through December 31, 2016 ---- $12,056

January 1, 2015 through December 31, 2015 ---- $12,000
June 1, 2014 through December 31, 2014 ---- $8,426
June 1, 2013 through May 31, 2014 ---- $8,295

June 1, 2012 through May 31, 2013 ---- $8,129
June 1, 2011 through May 31, 2012 ---- $7,873
June 1, 2010 through May 31, 2011 ---- $7,812

If you have questions about either section of the insurance code, please contact the Office of Consumer Services toll-free at 877-999-6442. If you would like to obtain a copy of the list of participating municipalities, you may either contact the office at the above telephone number or download a copy by selecting the list below:

Fire Insurance Withholding Program List