“Can Pet Ownership Affect Your Eligibility for Insurance in Michigan?”
Typically, no. Michigan’s Essential Insurance Act1 limits the factors that insurance companies can consider when deciding whether to insure “eligible persons.” Most people qualify as “eligible persons” when they buy insurance for their residence, whether they rent or own their homes.2 DIFS Bulletin 2019-20-INS clarifies that insurers may not refuse to insure any eligible person on the basis of pet ownership, unless that person has a related claims history (and then only in limited circumstances if the claim arose in the three years preceding renewal).
Surcharges: The bulletin also states that insurers may charge more based on ownership of a particular breed of dog or species of animal, but only when actuarily supported by data regarding the associated risk. However, the Fair Housing Act exempts assistance animals from these charges. Assistance animals include “‘(1) service animals, and (2) other animals that do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for
individuals with disabilities.’”3
Limitations: These protections apply to residential insurance and eligible persons, not to other kinds of insurance (such as commercial insurance), lease agreements, or rules set by associations or governments. However, landlords may be more comfortable renting to pet owners who have liability insurance.
Impact: Many mortgages and leases require that their signees carry insurance. Barring insurers from refusing to issue or continue coverage on the basis of pet ownership helps make housing accessible to pets and their families. As policies with breed restrictions become more common, it is especially important to protect pets facing the greatest threats of breed discrimination and homelessness, such as pit bulls and huskies.
June 2020, by Charlotte McCray, insurance attorney at McCray Law Office.
This memo is for informational purposes only. It is not legal advice or affiliated with DIFS or other governmental entities.
Image: Charlotte and Jackson
2 MCL 500.2103(2) defines an “eligible person” for home insurance as an “owner-occupant or tenant of a dwelling of any of the following types: a house, a condominium unit, a cooperative unit, a room, or an apartment” or “the owner-occupant of a multiple unit dwelling of not more than 4 residential units” who isn’t otherwise excluded. MCL 500.2103(3) defines home insurance as including “Fire insurance for an insured’s dwelling of a type described” above, and specifically references “renter’s home insurance.” Individuals are eligible by default, but may lose eligibility based on conduct such as insurance fraud or arson.
3 HUD FHEO Notice FHEO-2020-01 at 3, Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act, January 28, 2020. See also DIFS Bulletin 2019-20-INS quoting HUD FHEO-2013-01 at 2, Service Animals and Assistance Animals for People with Disabilities in Housing and HUD-Funded Programs, Apr. 25, 2013.