Sections 500.2227 and 500.2845 of the Michigan Insurance Code allow municipalities which participate in the fire insurance withholding program to escrow 25% of a fire insurance settlement for losses which meet established criteria to real property within the boundaries of the municipality. For residential property, the 25% settlement shall not exceed a maximum amount which is adjusted annually, beginning June 1, 1999, from the original maximum of $6,000, in accordance with the consumer price index.

The new fire insurance maximum withholding amount effective

June 1, 2008 through May 31, 2009 is $7,681.

The maximum assignment levels for recent years are as follows:

June 1, 2007 through May 31, 2008 ---- $7,443
June 1, 2006 through May 31, 2007 ---- $7,304
June 1, 2005 through May 31, 2006 ---- $7,064
June 1, 2004 through May 31, 2005 ---- $6,879
June 1, 2003 through May 31, 2004 ---- $6,725
June 1, 2002 through May 31, 2003 ---- $6,621
June 1, 2001 through May 31, 2002 ---- $6,437

If you have questions about either section of the insurance code, please contact Consumer Services Division toll free at (877) 999-6442. If you would like to obtain a copy of the list of participating municipalities, you may either contact the division at the above telephone number or download a copy by selecting the list below:

Fire Insurance Withholding Program List