Frequently asked questions

Notify the insurer or agent promptly. When safe, take reasonable steps to prevent additional damage, photograph or record the conditions, preserve damaged property for inspection, and keep receipts for emergency work. Avoid permanent repairs before inspection unless they are necessary to protect the property.

A proof of loss is a statement and supporting information used to document the claim. The required form, contents, and deadline can depend on the policy and the loss. Michigan DIFS advises policyholders to cooperate with reasonable requests and provide inventories and other requested proof. Keep a complete copy of everything submitted.

Keep the complete policy and declarations page, claim number, insurer correspondence, photographs and video, inventories, estimates, invoices, receipts, temporary-living-expense records, and notes of calls or meetings. A dated claim timeline is also useful.

Policies commonly require reasonable steps to protect property from further damage. Document the condition before and during emergency work when possible, save damaged materials for inspection when practical, and keep receipts. Whether permanent repairs should proceed before inspection depends on the circumstances and policy.

Depending on the policy and claim, the insurer may require a signed or sworn form stating the date and cause of loss, ownership interests, other insurance, property values, repair estimates, damaged-personal-property inventories, receipts, and the amount claimed. Submit responsive supporting records and keep an exact copy of the complete package.

Treat every stated deadline as strict. Read the policy and every insurer letter immediately, calendar the earliest possible due date, and confirm delivery in a traceable way. Michigan law requires an insurer, unless it settles the claim sooner, to identify in writing within 30 days after receiving a claim the materials it considers a satisfactory proof of loss. That rule does not erase a separate policy deadline. If more time is needed, request a written extension before the deadline; do not assume silence or informal discussions extend it.

Do not let the deadline pass without responding. Promptly tell the insurer in writing what remains unavailable, submit what can be accurately supported, and request a specific written extension. Whether late or incomplete proof can be excused is fact- and policy-dependent, so obtain advice promptly rather than relying on a possible exception.

A proof of loss may be sworn. Never inflate a value, conceal prior damage, alter a record, invent a receipt, or guess when you do not know. Correct an honest mistake promptly and in writing. Michigan's standard fire-policy statute permits policies to be voided on the basis of misrepresentation, fraud, or concealment, and inaccurate information can jeopardize the entire claim.

The policy may require documents, inventories, inspections, recorded statements, examinations under oath, and other reasonable claim information. Respond on time, preserve evidence, communicate in writing, and ask for clarification when a request is unclear. Cooperation does not mean guessing, signing an inaccurate statement, or surrendering every objection; sensitive or unusually broad requests should be reviewed promptly.

Actual cash value generally reflects replacement cost less depreciation. Replacement-cost coverage generally measures the cost to repair or replace with comparable property, subject to policy conditions and limits. Some policies pay actual cash value first and additional replacement-cost benefits after repair or replacement.

There is no single deadline that describes every Michigan property claim. DIFS guidance discusses when supported benefits may become overdue, while Michigan's standard fire-policy statute contains separate payment language. The applicable rule depends on the policy, type of loss, proof submitted, and any unresolved coverage or valuation issues.

Appraisal is a process for resolving certain disagreements about the amount of loss or actual cash value. Under Michigan's standard fire-policy statute, either party may make a written demand and each selects an independent appraiser; an umpire may resolve remaining differences. Appraisal generally addresses valuation, not every coverage dispute.

Compare the insurer's estimate with contractor estimates, photographs, measurements, inventories, and policy terms. Identify omitted work, pricing differences, depreciation, code-related costs, and limits or exclusions. Ask for the insurer's position in writing and consider legal review if the gap is significant or remains unresolved.

An EUO is a formal, recorded question-and-answer session requested during a claim investigation. The policyholder is placed under oath, and a court reporter commonly prepares a transcript. It is different from a deposition in a filed lawsuit.

An attorney is not automatically required, but an EUO produces sworn testimony that can affect coverage. Legal help may be especially useful if the insurer raises fraud, concealment, ownership, valuation, causation, prior-loss, or cooperation issues, or requests extensive records.

An SIU review is an insurer's additional investigation of issues it believes require closer examination. A referral does not itself prove wrongdoing or decide coverage, but it can lead to document requests, interviews, a recorded statement, or an EUO.

It may request information it considers relevant to ownership, value, occupancy, cause, prior losses, or another claim issue. The policy language, wording of the request, and facts matter. Do not ignore a request or provide inaccurate information; consider advice before responding to broad or sensitive requests.

Allyn PC handles large and complex property-loss matters as well as smaller claims worth pursuing. Complex cases may involve substantial residential or commercial damage, multiple coverage issues, extensive inventories, business-income loss, experts, EUOs, SIU investigations, appraisal, motions, and trial. The firm is also willing to review smaller claims and matters declined by other firms. Qualifying cases may be considered for contingency representation. Every matter is evaluated individually, and no particular claim size or another firm's decision guarantees acceptance.

Request the decision and the supporting policy language in writing. Gather the full policy and claim record, preserve evidence, and promptly consider a legal review. Policy conditions and time limits may affect available options.

Yes. DIFS encourages consumers to first try to resolve the dispute directly with the insurer. If it remains unresolved, a consumer may file a complaint with DIFS. The complaint process is not a substitute for complying with policy conditions or preserving legal deadlines.

Consider prompt advice when a claim is denied, substantially underpaid, repeatedly delayed, assigned to SIU, scheduled for an EUO, or involves a large loss, broad document requests, accusations of fraud or misrepresentation, or an approaching deadline.

Bring the complete policy and declarations page, denial or reservation-of-rights letters, claim correspondence, photographs and video, estimates, invoices, receipts, inventories, EUO or SIU requests, and a short timeline. Do not send confidential information until the office confirms representation.

No. A policyholder may still have a breach-of-contract claim for covered benefits. Depending on the facts, Michigan's Insurance Code may provide 12% simple interest on benefits not paid on a timely basis, and DIFS may investigate consumer complaints and unfair trade practices. An actually independent tort or another statutory remedy may also matter, but poor claim handling alone does not automatically create a separate first-party bad-faith tort.

“Bad faith” is a familiar national insurance term and a popular search phrase, but state law differs. Some websites use the phrase informally to describe a denied, delayed, or underpaid claim even when the legal action in Michigan would ordinarily be framed as breach of contract or another recognized claim. Consumers should ask what exact Michigan cause of action and remedy the attorney means.

Yes, which is why a categorical statement that bad faith “does not exist” would be too broad. Michigan authorities use bad-faith concepts in other settings, including certain liability-insurance failures to defend or settle within policy limits and the third-party-claimant language of MCL 500.2006. Those doctrines are different from a homeowner asserting a standalone tort because the homeowner's own property claim was denied.

Ask whether the insurer breached the policy, what benefits and interest may be recoverable, whether an independent wrong or statute applies, what policy conditions remain outstanding, and what deadlines govern suit. The label matters less than pleading a claim and remedy Michigan law actually recognizes.