For National Preparedness Month, DIFS Recommends Reviewing Policies and Creating a Plan to Pay Unexpected Insurance Deductibles

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Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: September 11, 2024

(LANSING, MICH) September is National Preparedness Month, and the Michigan Department of Insurance and Financial Services (DIFS) is recommending that Michiganders review their insurance policies and create a plan to pay policy deductibles in the event of an emergency to ensure they can take advantage of their insurance coverage.

"In recent years, Michigan has seen an increase in severe weather accompanying the change in seasons, and having homeowners or renters insurance in place is vital when disaster strikes," said DIFS Director Anita Fox. "National Preparedness Month is a perfect opportunity to review your insurance coverage and make sure you have a dedicated emergency fund or other plan to pay your deductible in the event of a disaster."

A deductible is a certain amount of money that must be paid out-of-pocket before the insurance company will pay a claim after a loss. For example, a homeowners policy may have a $1,000 deductible, meaning you must pay $1,000 for a covered loss before the insurance company will pay. Choosing a higher deductible may lower your premium, but it also comes with higher up front out-of-pocket costs in the event of a loss. If you are unsure of your policy's deductible, review your policy documents or talk to your insurance agent or company about your current deductible and what is best for your needs and budget.

In addition to having a plan to pay your insurance deductible, National Preparedness Month is a good time for Michiganders to:

• Review insurance policies to understand their coverage and responsibilities. Flood damage is not covered by standard homeowners and renters insurance policies. There are certain insurance policies, including federal flood insurance, that homeowners would need to purchase to have coverage for flooding or water and sewer back-up resulting from storms or other natural disasters. It is important to discuss these options with your insurance agent or your insurance company well before flooding or damage occurs.
• Prepare a detailed inventory of personal property with photographs or videos of each room in the home and a detailed list of other valuables and equipment that do not appear in the photos or videos. These materials should be stored in a safe place, such as a safe deposit box, with a relative, or online.
• Make a list of important telephone numbers, including family members, insurance agents, and insurance companies.
• Store copies of all insurance policy declaration pages and insurance cards in a safe place, such as a safe deposit box or online in the cloud, in case the originals are destroyed or lost.

For more information on insurance coverage and disasters, visit the DIFS Disaster Preparedness webpage. Consumers who have questions or concerns about their insurance coverage can contact DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint online at Michigan.gov/DIFScomplaints.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

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