MI| The Michigan Department of Insurance and Financial Services issued Bulletin 2025-14-INS to announce the annual adjustment of the fire insurance maximum escrow under Section 2227 of the Michigan Insurance Code. Effective July 1, 2025, through June 30, 2026, eligible municipalities participating in the fire insurance withholding program may escrow up to 25% of a fire insurance settlement for losses to real property, with the maximum escrow amount for residential property set at $24,096—an increase from the previous year’s $24,000—reflecting an annual adjustment based on the consumer price index.
This bulletin supersedes the prior year’s guidance and reiterates that the escrow program aims to ensure funds are available for the repair or demolition of damaged properties within participating municipalities.