The Michigan Department of Insurance and Financial Services (DFS) published an updated list of the municipalities participating in the Fire Insurance Withholding Program.
The program allows participating municipalities to escrow 25% of fire insurance settlements for real property losses caused by fire or explosion within that municipality. The DFS Director periodically updates the municipalities participating in the program.
The participating municipalities are divided into two sections: Section 2845 covers municipalities with a population of 50,000 or less and in a county with a population of 425,000 or less, and Section 2227 covers municipalities with a population of 50,000 or less and in a county with a population of 425,000 or more.
The municipalities listed under Section 2845 may escrow 25% of a fire insurance settlement, up to a maximum of $16,383, for real property losses caused by fire or explosion. Under Section 2227, the larger municipalities may also escrow 25% of a settlement, up to a maximum of $24,096, for losses to real property caused by fire and explosion, and also the additional perils of vandalism, malicious mischief, wind, hail, riot, or civil commotion.
The update is effective as of 6/1/2025.
The updated list of the municipalities participating in the program and their applicable Section can be found here.