MI| Bulletin 2025-27-INS from the Michigan Department of Insurance and Financial Services outlines the annual adjustment of the fire insurance maximum escrow under Section 2845 of the Michigan Insurance Code, effective January 1, 2026, through December 31, 2026. Eligible municipalities participating in the fire insurance withholding program may escrow 25% of fire insurance settlements for losses to real property within their boundaries, with the maximum withholding amount for residential property set at $16,383 for 2026, reflecting an annual adjustment based on the consumer price index.
The bulletin supersedes the previous year’s guidance and provides a summary of recent maximum withholding amounts for reference, noting the amounts for:
- Jan 1 though Dec. 31, 2025 – $16,025
- Jan 1 though Dec. 31, 2024 – $15,520
- Jan 1 though Dec. 31, 2023 – $15,009
- Jan 1 though Dec. 31, 2022 -$13,835