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Insurance Companies - How do we calculate the escrow amount?

The amount to be escrowed is 25% of the actual cash value of the insured real property at time of loss, or 25% of the final settlement, whichever is less.

For residential property the maximum escrow amount is adjusted annually by DIFS in accordance with the consumer price index. The adjusted amount may be found on DIFS’ website www.michigan.gov/DIFS and is also reflected in the upper right corner of the published list of participating municipalities.

For commercial property, the amount to be escrowed is 25% of the final settlement, with no maximum.

Fire Insurance Withholding Maximum Escrow

Fire Insurance Withholding Program List