Personal Lines Insurance: Home, Auto, Umbrella, and More
What Is Personal Lines Insurance?
Personal lines insurance is a form of coverage that protects against loss due to death, injury, or property loss. Life is unpredictable. By protecting what you value most with quality coverage, you can ensure peace of mind the next time you have to deal with life’s more difficult moments.
Types of Personal Lines Insurance
- Home insurance: While not required in Michigan, homeowners insurance coverage is incredibly beneficial in the event of a burglary or weather disaster (we’re looking at you, frozen pipes and roof problems from harsh Michigan winters). It also covers other unexpected circumstances, including but not limited to fires, damage from a motor vehicle, or vandalism.
- Auto insurance: Michigan drivers must have auto insurance to be on the road. This may cover not only damage to the vehicle itself, but also any medical bills sustained in an accident. Depending on your policy, it could even cover potential legal fees.
- Boat insurance: What are the Great Lakes (and 11,000 inland lakes) without boats? Protect your prized possession— after all, is it really a Michigan summer without a pontoon cruise or regular weekend fishing trips?
- Motorcycle insurance: Motorcyclists in Michigan need liability insurance, which differs from the mandatory no-fault insurance policy. Non-mandatory medical benefits coverage is also available.
- Personal umbrella insurance: An added layer of liability protection, umbrella insurance is for specific instances that exceed normal coverage limits.
Home Insurance for Michigan Families
Types of Coverage
Dwelling coverage protects your home when an entire rebuild or partial restoration is required because of damages. This is specific to the structure of the home and does not include the personal belongings inside. Dwelling coverage extends to attached areas of the home or building, including garages, porches, in-ground pools, and decks.
Personal Property Coverage
While the home exterior is important, personal property coverage is also extremely helpful in the event of theft or external hazards, like fire or water damage. You have worked hard to provide for an environment you feel comfortable, welcome, and at-home in; personal property home insurance ensures it will be able to be replaced if the worst happens.
Planning to have people on your property? Liability coverage is necessary if someone gets injured and subsequently sues the property owner. If found legally responsible, the owner may be required to make up for lost wages or pay for a hospital stay or treatment. Whether due to a fall from a rickety deck or ice-covered stairs, medical bills are expensive. Liability home insurance to the rescue!
Guest Medical Coverage
Guest medical coverage (you may have heard of this referred to as good will coverage or guest medical protection) aids in covering medical bills of injured persons that do not reside in the home. If your couch-surfing cousin breaks his leg while actually attempting to couch-surf in your home, guest medical coverage can protect you from having to cover his bills out of your own pocket.
Requirements for Home Insurance
Michigan has NO requirements for home insurance. It is important to note that unless you are buying a home with cash, you will most likely need a mortgage to finance the purchase. Insurance is a requirement from the mortgage lender as a form of protection on their end. Check your loan documents to understand which forms of insurance are mandatory and how to provide proof of coverage.
Risks for Uninsured Homes
As we Michiganders know all too well, the weather here is predictably unpredictable. It can be incredibly difficult to financially recover after severe property damage from tornadoes, lighting strikes, and fallen trees. Hail in June? Yeah. It happens.
Auto Insurance for Michigan Drivers
Types of Coverage
Auto insurance is legally necessary in Michigan, and there are a few types of coverage that help with a variety of scenarios. Think of auto insurance as a defense in the case of accidents, which are unfortunately occurring at an increasing rate.
Michigan has both mandatory and optional auto insurance coverage policies. As a no-fault state, personal liability and property damage insurance (PLPD) is the minimum required for everyone on the road. This protects you as the driver or as the person suffering from a car accident when it comes to medical bills or potential litigation.
Non-mandatory forms of coverage include collision and comprehensive insurance, both of which provide funds for vehicle repair or replacement. Collision deals specifically with damage due to an auto accident, while comprehensive covers damage sustained from car burglary or other hazards, like a fallen tree or electrical pole.
Uninsured/underinsured motorist coverage (UM/UIM) is another optional policy that comes in handy when you’re in an accident caused by an uninsured or limited policy driver. Michigan has one of the highest rates of uninsured drivers, and UM/UIM is incredibly beneficial in the event of the dreaded hit-and-run.
Liability insurance is required in Michigan. The minimum necessary amounts are as follows:
- Up to $50,000 for one person injured in an accident
- Up to $100,000 for an accident with multiple people injured
- Up to $10,000 for property damage that occurs outside of Michigan
There is a vast list of penalties for driving without insurance in Michigan. Uninsured drivers can incur a misdemeanor charge, hefty fines, temporary loss of license, court fees, and even possible jail time.
Factors Affecting Car Insurance Rate
Location, type of vehicle, driver age, and driving record all affect car insurance rates. For example, drivers between the ages of 16 and 18 pay significantly more than older drivers due to inexperience. Anyone with previous DUI convictions are considered high-risk drivers, therefore having a steep increase in insurance rates.
Michigan No-Fault Reform, Explained
Since 1973, Michigan has been a no-fault state. In July of 2020, a no-fault reform was implemented, allowing drivers to choose a personal injury protection (PIP) coverage limit that best fits their needs. While coverage is still mandatory, this new legislation allows for options which may result in lower premiums.
Boat Insurance for Michiganders
According to the Census Bureau and US Coast Guard, Michigan has over 8,000 boats per 100,000 people. Are you one of those lake-loving folks? If so, boat insurance coverage could certainly benefit your favorite summer hobby, whether you’re out on one of the Great Lakes, Torch, Higgins, or your longtime family-favorite oasis.
Types of Coverage
Coverage does vary depending on the specific type of boat or water transportation device, but coverage tends to encompass damage to any part of the craft (including the trailer), destruction to another boat or property as a result of your boat, general and medical liability, and boat replacement.
Like auto insurance, there are other forms of coverage available for boats, including towing.
While boats need to be registered in Michigan, they do not need to be insured. There are a plethora of reasons, however, that boat insurance is highly recommended to ensure a stress-free cruise.
Motorcycle Insurance for Michigan Riders
Prefer the open-air cruise a motorcycle can offer? Understanding motorcycle insurance is important to not only cover the expenses of a bike, but also any steep medical bills if an accident were to occur.
Types of Coverage
Similar to auto insurance, there are a few types of motorcycle coverages to consider. Liability is necessary, while uninsured/underinsured, comprehensive, and collision are helpful, but not legally required.
In contrast to auto insurance, there are three more coverage policies that apply specifically to bikes. Custom parts, equipment, and accessories coverage is great to consider for someone with a heavily customized motorcycle, as comprehensive and collision will only cover a small portion of personalized furnishing repairs.
Do you enjoy the freedom and experience of a good road trip? Trip interruption coverage pays for food and board in the event the bike experiences issues or is involved in an accident far from home.
Towing and labor coverage is just that; if you need to be towed, or the motorcycle needs work that falls under the policy guidelines, you are all set.
Motorcycle insurance is necessary in Michigan. The minimum limit amounts are:
- Up to $20,000 for a single person injured
- Up to $40,000 for an accident with multiple people injured
- Up to $10,000 in property damage due to an accident
Does My Auto Insurance Cover My Motorcycle?
No. Motorcycle insurance is its own policy.
Does Michigan’s No-Fault Reform Apply to Motorcycles?
No. Motorcycles are not considered motor vehicles in Michigan, so the no-fault reform does not apply.
Personal Umbrella Insurance
For an affordable premium, umbrella insurance coverage offers additional protection when another policy limit has reached its cap.
What Does Umbrella Insurance Cover?
Extending beyond home, auto, or other policies, this household-wide policy provides broad coverage, including damage to property, injuries, or legal fees from third-party claims.
Is Umbrella Insurance Worth It?
Not sure if you need this extra layer of protection? Here are a few examples when umbrella insurance is hugely beneficial:
- You have many significant assets.
- You have a trampoline, pool, dog, or something that could cause bodily injury to a guest of the home.
- You’re a landlord, and a tenant suffers a physical injury on-site, or leaves the rental property with damages.
- You’re dealing with a libel, slander, or defamation of character lawsuit.
- You’re the parent or guardian of a new driver.
- You cause a serious car accident and are responsible for excess medical bills.
Protect Yourself with Personal Lines Insurance
At Doyle & Ogden Insurance we are excited to provide exceptional personal lines insurance services, giving a comforting sense of assurance to our community. Life is meant to be enjoyed, and insurance is the most essential tool in being protected and prepared when the unexpected occurs. Send us a message and begin protecting your valuable assets today.