Michigan Lawyer for Underpaid and Delayed Home Insurance Claims

The tarp is still on the roof, the contractor wants a deposit, and the estimate your insurer sent covers a fraction of what three local contractors quoted. Or there is no estimate at all, just a claim number and a voicemail box. Michigan law sets deadlines the insurer must meet, penalties for missing them, and limits on what you can recover, and all three shape what you should do next.

Our property damage claims attorneys at Vahdat Weisman Law represent Michigan homeowners, condo owners, and landlords in disputes with their own property insurers. Call (734) 469-4994 for a free consultation. No attorney fee unless we recover for you.

How Long Can Your Insurer Take to Pay?

The 30-day rule. After the insurer receives the claim, it has 30 days to tell you in writing what materials make up a satisfactory proof of loss, unless it settles the claim within that time (MCL 500.2006(3)). If the insurer never gives you that written list, you are excused from submitting one, and the claim proceeds as if you had (Angott v Chubb Group of Insurance Cos, No. 258026 (Mich Ct App, April 4, 2006) (published)).

The 60-day rule. Payment is timely if made within 60 days after the insurer receives satisfactory proof of loss. If your proof supports only part of the claim, that part has its own 60-day window, and so does anything you document later (MCL 500.2006(3)). A dispute over one room does not justify holding back the part your documents already support.

Your policy must also make the loss payable within 30 days after proof of the amount of loss (MCL 500.2833(1)(p)), subject to a fire-loss holdback (MCL 500.2845) explained on our fire loss claims page.

The 12 Percent Penalty Interest Rule

A late payment carries simple interest at 12 percent per year, running for a policyholder from 60 days after the insurer received satisfactory proof of loss (MCL 500.2006(4)).

This interest does not depend on proving the insurer acted badly. The statute’s “reasonably in dispute” defense applies only to third-party tort claimants, not to an insured (Nickola v MIC General Insurance Co, 500 Mich 115 (2017); Griswold Props, LLC v Lexington Insurance Co, 276 Mich App 551 (2007)). Interest can be owed even where the insurer had a reasonable basis to question the amount.

Three limits apply. If your loss exceeds your coverage, interest runs on the policy limits. If you reject an offered payment and do not later recover more, that interest is not due. And it offsets any interest a court awards (MCL 500.2006(4)).

Can You Sue Your Insurer for Bad Faith in Michigan?

Usually not as a separate tort. An alleged bad-faith breach of your own policy does not state an independent tort claim in Michigan (Casey v. Auto-Owners Insurance Co., 273 Mich App 388 (2006)). Your claim is for breach of contract.

That limits what a court can award. Breach of an insurance contract does not support damages for mental distress, and exemplary damages require tortious conduct independent of the breach (Kewin v. Massachusetts Mutual Life Insurance Co., 409 Mich 401 (1980)). If you spent a winter in a hotel because the claim stalled, you generally recover what the policy owed, including covered additional living expenses, plus statutory interest.

A 2025 bill would create a civil action for bad-faith claims handling. As of October 2026, it has cleared a Senate committee but has not passed either chamber (SB 245 of 2025). It is not law.

The Unfair Claims Practices List

Michigan’s Uniform Trade Practices Act lists 14 claim-handling practices that are unfair when they form a course of conduct, “other than isolated incidents” (MCL 500.2026(1)). Among them:

• refusing to pay without a reasonable investigation (d)
• failing to affirm or deny coverage within a reasonable time (e)
• not attempting in good faith to settle once liability is reasonably clear (f)
• forcing you to sue by offering substantially less than you later recover (g)
• failing to give a prompt, reasonable explanation of the policy basis for a denial or a compromise offer (n)

You cannot sue under this list directly. The Act creates no private cause of action, apart from the section 2006 interest (Bell v League Life Insurance Co, 149 Mich App 481 (1986); Young v Michigan Mutual Insurance Co, 139 Mich App 600 (1984)). It still provides the language for a written complaint, and the state regulator enforces it.

Filing a Complaint with DIFS

The Michigan Department of Insurance and Financial Services licenses and regulates insurers. You can file a complaint online through the DIFS complaint page or call 877-999-6442. DIFS asks you to try resolving the dispute with the insurer first; if that fails, its office “can help try to resolve your dispute.”

DIFS asks the insurer to respond and reviews its handling, but it is a regulator, not your lawyer and not a court, and it does not award damages for breach of your policy. Filing a complaint is not one of the events that pauses your deadline to sue (MCL 500.2833(1)(q)).

Your One-Year Deadline to Sue

Michigan law requires your property policy to allow a lawsuit “within 1 year after the loss or within the time period specified in the policy, whichever is longer.” That period is “tolled from the time the insured notifies the insurer of the loss until the insurer formally denies liability” (MCL 500.2833(1)(q)). The same provision says you may sue “only after compliance with the policy requirements,” which is why your duties after a loss matter.

Calendar one year from the date of loss as your outside date unless a lawyer has confirmed how tolling applies, including whether a partial payment or a letter disputing the amount counts as a formal denial.

Proof of Loss, Examinations Under Oath and Reservation of Rights

Many homeowners policies require a sworn proof of loss, a signed, notarized statement of what you claim, by a deadline in the policy or the insurer’s request; check your policy’s “duties after loss” section. If the insurer’s form fills in its own number, you can generally state your figures and note what remains disputed.

Many policies also allow the insurer to take your examination under oath, conduct a transcribed interview, and request records such as receipts and repair invoices. Because suit requires compliance with policy requirements, refusing can put the claim at risk. You can bring a lawyer.

A reservation of rights letter means the insurer is investigating while keeping the option to deny coverage later. Note the policy provisions it cites and answer requests by their stated dates.

What to Do When the Offer Is Too Low

• Ask in writing for a certified copy of your full policy, the adjuster’s estimate with line items, and any engineer or consultant report and photographs.
• Get your own written estimate from a licensed contractor, and an engineer’s opinion if the cause is disputed.
• Keep a communications log of dates, names, and promises, and confirm each call by email.
• Photograph damage with dates, keep damaged materials until inspected, and save receipts for repairs and living expenses.
• Answer the insurer’s estimate line by line.

If the disagreement is only about the amount of the loss, your policy’s appraisal clause may resolve it faster than a lawsuit (MCL 500.2833(1)(m)). See our insurance appraisal process page and our water damage claims page for leak and burst-pipe disputes.

Public adjusters. A public adjuster works for you, must be licensed, and must use a state-approved contract. The fee cannot exceed 10 percent of what the insurer pays, and a contract signed within 48 hours after the loss is voidable by you for 10 days (MCL 500.1226(3)-(4)).

Will You Get Your Attorney Fees Back?

Generally, no. Michigan follows the American rule: each side pays its own lawyer unless a statute or court rule expressly allows fee-shifting (Haliw v. City of Sterling Heights, 471 Mich 700 (2005)). The 12 percent interest statute has no fee provision, unlike the no-fault act for auto benefit claims.

One court rule can shift litigation fees. A party who rejects a written offer of judgment and then does worse at trial can be ordered to pay the other side’s actual costs, including a reasonable attorney fee. However, the court may refuse the fee in the interest of justice (MCR 2.405(A)(6), (D)). It applies to both sides. Case evaluation sanctions were removed effective January 1, 2022.

Why Choose Vahdat Weisman Law?

Underpayment disputes turn on dates: when the insurer received the claim, when it specified its proof-of-loss requirements, what your documents supported and when, and how tolling applies. We build that timeline first, because it decides what interest may be owed and how much time you have.

From our Livonia office, we represent injured people and their families throughout Michigan. Founding partners Kara E. Weisman and Jordan S. Vahdat have each been honored as Super Lawyers Rising Stars. Our attorneys are members of the State Bar of Michigan and active in the Michigan Association for Justice. We advance case costs, we work in English and Spanish, and we are available 24/7.

Frequently Asked Questions

• Can I sue my insurance company for bad faith in Michigan? Generally not as a separate tort. You sue for breach of the policy, and you may be owed 12 percent penalty interest even if the claim was reasonably disputed (Nickola, 500 Mich 115 (2017)). Still, emotional distress and exemplary damages are generally unavailable (Kewin, 409 Mich 401 (1980)).
• How long can my insurer take to pay my home insurance claim? It has 30 days to list its proof-of-loss requirements in writing and 60 days after satisfactory proof to pay. After that, 12 percent interest runs (MCL 500.2006(3)-(4)).
• Should I cash a check that says “full and final settlement”? Talk to a lawyer before you do. Under Michigan’s accord and satisfaction statute, cashing a check that conspicuously states it satisfies a disputed claim can discharge the rest of the claim, though in some cases repaying the amount within 90 days undoes it (MCL 440.3311). A check that simply pays the undisputed portion, with no release language, is a different matter.
• Will I get my attorney fees back if I win? Usually not. In Michigan, each side pays its own lawyer, with narrow exceptions such as the offer-of-judgment rule (MCR 2.405).

About the Author

Jordan S. Vahdat is a founding partner of Vahdat Weisman Law in Livonia and handles negligence, premises liability, auto accident, and insurance dispute cases. He has been admitted to all Michigan state courts since 2014, practices in the Eastern District of Michigan, and has served as a case evaluator for the Washtenaw Circuit Trial Court and the 15th District Court since 2020. He is fluent in Spanish.

Talk to a Michigan Property Insurance Claim Lawyer

If your insurer is slow-walking, underpaying, or not answering your home insurance claim, call Vahdat Weisman Law at (734) 469-4994 or contact us online for a free consultation. Available 24/7, serving all of Michigan, with Spanish-speaking staff. Our property damage claims FAQs cover related questions.

Dedicated to Justice. Devoted to You. Winning for Your Future.

Reviewed by Jordan S. Vahdat, Vahdat Weisman Law. Last reviewed October 2026.

This information is for educational purposes only and does not constitute legal advice. Every case is unique, and prior results do not guarantee future success.