Annual Adjustment of the Fire Insurance Maximum Escrow under Section 2845 of the Michigan Insurance Code _________________________________________________

- 1 - STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES Bulletin 2025-27-INS In the matter of: Annual Adjustment of the Fire Insurance Maximum Escrow under Section 2845 of the Michigan Insurance Code _________________________________________________/ Issued and entered this 16th day of December 2025 by Anita G. Fox Director This bulletin supersedes Bulletin 2024-27-INS, dated November 21, 2024. Section 2845 of the Michigan Insurance Code, 1956 PA 218, MCL 500.2845, allows eligible municipalities participating in the fire insurance withholding program to escrow 25% of fire insurance settlements for losses to real property within its boundaries, provided certain criteria are met. Beginning January 1, 2015, for residential property, the 25% settlement or judgment subject to escrow shall not exceed $12,000, adjusted annually on January 1 of each year in accordance with the consumer price index. Accordingly, the adjusted fire insurance maximum withholding amount, effective January 1, 2026, through December 31, 2026, is $16,383. The maximum withholding amount for recent years are as follows: January 1, 2025 through December 31, 2025 ---- $16,025 January 1, 2024 through December 31, 2024 ---- $15,520 January 1, 2023 through December 31, 2023 ---- $15,009 January 1, 2022 through December 31, 2022 ---- $13,835 Any questions regarding this bulletin should be directed to: Department of Insurance and Financial Services Office of General Counsel 530 West Allegan Street, 7th Floor Lansing, Michigan 48933 Toll Free: (877) 999-6442 /s/ _________________________________________ Anita G. Fox Director