| FOR IMMEDIATE RELEASE: November 16, 1999
LANSING Michigan Insurance Commissioner Frank M. Fitzgerald
announced today that the Michigan Basic Property Insurance Association
(Michigan Basic) now offers its policyholders the opportunity to
purchase additional property insurance coverage for specific types
of water damage. Michigan Basic provides property insurance to qualified
individuals who are unable to obtain property insurance in the regular
market.
This additional coverage offers Michigan Basic policyholders the
ability to purchase coverage of up to $5,000 for interior water
damage caused by rain, ice, snow or sleet. Policyholders should
be aware, however, that this coverage may not include coverage for
property losses resulting from flooding, sewer or drain back up
or overflow, or ground water seepage. Michigan Basic policyholders
who are interested in obtaining more details about this additional
coverage and its cost should contact their insurance agent.
"Michigan Basic provides a valuable service to the citizens
of this state by offering consumers the opportunity to obtain insurance
coverage for their property when they are unable to obtain coverage
in the regular market," Fitzgerald said. "I am pleased
Michigan Basic is now expanding consumers' property insurance options
by offering this additional coverage".
The heavy snow of January, 1999 caused many homeowners to experience
interior water damage caused by snow damming. This new optional
Michigan Basic coverage would pay for such claims.
"As we face another winter with predictions of heavier than
normal snowfall, Michigan Basic policyholders should speak with
their insurance agents about this new coverage," said Fitzgerald.
The Michigan Insurance Bureau has several consumer publications
available on its Web site that relate to property insurance and
Michigan Basic Property Insurance Association. The Bureau's Web
site address is: www.cis.state.mi.us/ins
The Michigan Insurance Bureau is the primary regulator for over
1,526 domestic, foreign and alien companies. The Bureau is 100%
fee-funded, requiring no public tax dollars for its supervisory,
regulatory, licensing, and enforcement activities.
The Insurance Bureau is placed within the Michigan Department of
Consumer and Industry Services.
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