The Michigan Department of Insurance and Financial Services published a Bulletin addressing the updated claims paid dollar amounts necessary for the nonrenewal of a home insurance policy. Under Michigan Insurance Code MCL 500.2117(2), insurers have certain criteria they must use to establish home insurance underwriting rules. Among those are the physical condition of the property, whether a dwelling has been unoccupied for more than 60 days, and the existence of an adjacent physical hazard. 

Another criteria is the amount of paid claims necessary for nonrenewal of a home insurance policy. Previously, that amount for policies with three paid claims within the last three years, exclusive of weather-related claims, had to total $4,000 or more. Including weather-related claims, the claims had to total $5,300 or more. 

The Department adjusts those amounts every six years based on the consumer price index (CPI), which is a modifier that adjusts for inflation. Starting January 1, 2024, the updated minimum for nonrenewal eligibility is $5,000 total for three paid claims within the last three years, exclusive of weather-related claims. The updated minimum for nonrenewal eligibility is $6,600 total for three paid claims within the last three years, including weather-related claims.