Quick answer
A fire insurance claim in Michigan starts with notifying your insurer, protecting the property and documenting the damage. Under state law, the insurer must tell you in writing within 30 days what counts as proof of loss and pay within 60 days of receiving it, or add 12% annual interest. Some cities can also hold 25% of a large fire settlement in escrow until the property is repaired or removed.
Step one: open the claim and protect the property
Call your agent or the insurer's claims line as soon as everyone is safe, and write down the claim number, the date and the name of everyone you speak to. Ask who your adjuster will be and when they plan to inspect.
Most policies require you to protect the property from further damage. Board-up, roof tarping and water removal are part of that duty, and their cost is normally part of the claim. Keep the invoices and photos.
- Write down the claim number and every contact
- Ask when the adjuster will inspect
- Get the house secured and the water out
- Keep receipts for emergency work and living expenses
What proof of loss means, and Michigan's 30 and 60 day rules
Proof of loss is the documentation the insurer needs to evaluate and pay the claim: usually a signed statement of the loss, with supporting estimates, photos, inventories and receipts. Insurers ask for it in different forms, so get their requirements in writing.
Michigan's insurance code sets two clocks. The insurer must specify in writing what materials make up a satisfactory proof of loss within 30 days after receiving the claim, unless it settles within that time. Once it has satisfactory proof of loss, a claim paid within 60 days is considered timely; if it is paid late, the payment carries simple interest at 12% a year from the 60-day mark (MCL 500.2006).
Partial proof counts too: the part of a claim that is supported can be paid on its own schedule while the rest is documented. That is one more reason to document thoroughly from the start.
Michigan's fire insurance withholding: why part of a settlement may be held
Michigan lets participating cities, villages and townships have insurers escrow 25% of a fire insurance settlement for damage to real property until there is evidence the property is being repaired, replaced or removed. The goal is to keep burned buildings from being left standing unrepaired.
The amount held is capped and adjusted each year. For municipalities in the program under Section 2227, the cap from July 1, 2026 through June 30, 2027 is $25,090; under Section 2845, the residential cap beginning January 1, 2026 is $16,383, according to the Michigan Department of Insurance and Financial Services. The withholding applies to the building, not your contents.
If your settlement is large and your municipality participates, expect a notice that part of it is held. It is released once the repair or removal is under way, which is another reason to keep your restoration scope and permits organized.
Starting a fire claim? Call and we will document the house before anything is moved.
Call (313) 391-5430Documenting the loss so nothing is missed
The claim is only as complete as the documentation behind it. Damage that is cleaned, thrown away or covered up before it is recorded is hard to add later.
- Photos and video of every room before anything is moved
- Moisture readings where firefighting water went
- An itemized restoration scope with quantities
- A room-by-room contents inventory with photos
- Receipts for emergency work, hotels, meals and essentials
- A log of every call and email with the insurer
The adjuster visit and the scope
The adjuster inspects the house, reviews the documentation and prepares the insurer's estimate. It helps to have your restoration company there, scope in hand, so differences can be discussed in the room rather than over email weeks later.
If the adjuster's estimate leaves out rooms, materials or contents you can see are damaged, ask in writing why, and send the photos that show it. Damage found after demolition, like charred framing behind plaster, is added through a supplement with photos and quantities.
Contents, living expenses and the mortgage company
Contents are usually handled separately from the building, from an inventory of what was damaged and its value. Additional living expenses cover the extra cost of living elsewhere while the house is repaired, within your policy's limits; keep every receipt.
If you have a mortgage, the lender is usually named on the policy, and building payments are often issued to both you and the lender. Lenders typically release the money in stages as repairs are completed, so ask your lender early how their process works.
If you disagree with the insurer
Start by asking for the reasoning in writing and responding with your own documentation. Many policies include an appraisal process for disputes over the amount of a loss. You can also hire a public adjuster to represent you, and you can contact the Michigan Department of Insurance and Financial Services with a complaint about how a claim is being handled.
This guide is general information, not legal advice. For a serious dispute, talk to a Michigan attorney who handles insurance claims.
Michigan fire claim questions
A claim is considered timely if paid within 60 days after the insurer receives satisfactory proof of loss. Late payments carry 12% simple annual interest under MCL 500.2006.
Participating municipalities can have 25% of a fire settlement for the building held in escrow, up to a capped amount, until the property is repaired, replaced or removed.
No. It applies to the building, not contents.
Check your policy wording. Many insurers offer a list as a convenience; read what yours says.
It is added through a supplement with photos and quantities. See fire insurance claim help.
Some homeowners do on large or disputed claims. They work for you and charge a fee, usually a share of the settlement.
