The Essential Insurance Act and Renters Insurance

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Michigan renters insurance information:

Dear Home Insurance Consumer:

The Essential Insurance Act was designed to ensure that companies offer home insurance to Michigan citizens and develop premiums for home insurance in a fair and equitable manner. The Act enables companies to set their own rates without the prior approval of the Commissioner of the Office of Financial and Insurance Services. The original intent of the Essential Insurance Act was to give insurers the ability to change their rates quickly, allowing them to respond to the demands of the marketplace and foster competition.

Access to affordable home insurance remains an essential part of the success story of each successful community across Michigan. For this reason, after receiving numerous consumer complaints regarding the rapidly increasing cost of home insurance, I recently launched a comprehensive examination of the competitiveness of the Michigan insurance marketplace.

As you may be aware, I have also initiated a rule that would cut home insurance base rates by eliminating the use of credit scoring when setting home insurance rates. I have taken this step because insurance credit scores have proven to be an unreliable source of information on which to base a home insurance rate and do not reduce insurance company losses.


Go to their website for the complete article: michigan.gov

 

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