Builders risk in Michigan

Michigan's EGLE requires a permit for certain construction on Great Lakes bottomlands below the statutory ordinary high-water mark, which can move as beaches erode or accrete. EGLE also describes a separate floodplain permit for work on rivers, streams, or drains with a drainage area of at least two square miles; applicable building codes call for the lowest floor of new or substantially improved buildings in a 100-year floodplain to be at least one foot above flood elevation. These are site and project conditions, not builders-risk coverage rules. ^1,²

What Is Builders Risk?

Builders risk protects the project you are building, including materials meant for it, against physical loss until construction ends. The gaps that cost owners money are materials in storage or transit, the existing building in a renovation, and coverage ending when you occupy early. Read the national Builders risk guide.

What to Watch for in Michigan

Confirm the shoreline work boundary
For Great Lakes bottomland work such as filling, dredging, docks, lifts, or seawalls, EGLE places the permit boundary below the statutory ordinary high-water mark. The mark can move with beach erosion or accretion. Have the project team confirm the current line and permits, then ask the broker how the quote treats shoreline, wave, water, and erosion damage to each scheduled item. ¹
Check the drainage-area trigger on river projects
EGLE says construction, fill, or alteration in a river, stream, or drain with a drainage area of at least two square miles requires a state floodplain permit under Part 31; local rules also matter. Ask the engineer or local official to verify the watercourse and drainage area before setting the start date and site schedule. ²
Distinguish a floodway from the rest of a floodplain
EGLE says new residential construction is prohibited in a floodway, while commercial construction may be allowed subject to analysis; its FAQ also states the lowest-floor elevation standard for new and substantially improved buildings in the 100-year floodplain. Ask the project team which mapped area and building classification apply. Separately ask how flood loss to the building and materials is treated by the quote. ²
Get a site elevation when map coverage is incomplete
EGLE notes that FEMA has not mapped every Michigan community and gives a route to request a floodplain determination where an elevation is unavailable. Ask the local official or EGLE about the parcel before pricing a build near an unmapped watercourse; share any elevation determination with the broker when discussing flood terms. ²

Who Regulates Insurance in Michigan

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. ^3,^4,⁵

Surplus-lines tax and stamping office

Reported tax rate: 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. ^6,^7,⁸

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Michigan

Is any planned work below the Great Lakes statutory ordinary high-water mark or within a river, stream, or drain floodplain?
What current flood elevation and permits apply to the exact building footprint, laydown area, and temporary works?
Does the quote schedule the correct site and project value, and how does its wording address flood, shoreline, transit, and off-site storage?