Do I have to purchase homeowners insurance?
Michigan law does not require you to carry insurance on your home or personal property; however, if you finance your home, your lender will likely require you to purchase insurance on the buildings to protect their financial interest in the property. The loan documents will specify what coverage must be maintained and how proof of coverage is to be submitted to the lender or the company servicing the loan. If you do not provide proof of coverage, the lender will purchase an insurance policy and pay for it out of your escrow funds (this is called "force-placed" insurance). If your home is not being financed, you may choose not to purchase homeowners insurance. However, without insurance you are assuming all of the risk to replace your home and possessions if they are damaged.