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, 2021, for residential property, the 25% settlement subject to escrow shall not exceed a maximum amount of $13,117, which shall be adjusted annually, in accordance with the consumer price index (CPI).

The new fire insurance maximum withholding amount effective

January 1, 2021 through December 31, 2021 is $13,117

The maximum assignment levels for recent years are as follows:

January 1, 2020 through December 31, 2020 is $13,058

January 1, 2019 through December 31, 2019 ---- $12,746
January 1, 2018 through December 31, 2018 ---- $12,508
January 1, 2017 through December 31, 2017 ---- $12,262
January 1, 2016 through December 31, 2016 ---- $12,056

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