What does Michigan's statutory appraisal clause mean for a disputed damage claim?
Under MCL 500.2833(1)(m), every Michigan fire insurance policy must let either side demand that a disputed amount of loss or actual cash value be set by appraisal. Each party names a competent, independent appraiser within 20 days of the demand, and the two appraisers select an impartial umpire; if they cannot agree within 15 days, a circuit court judge appoints one. Michigan is unusual in mandating this process by statute rather than leaving it to policy language.
How many years does Michigan allow for a personal property damage lawsuit?
Three years. MCL 600.5805 sets a three-year limit on actions for injury to property, covering vehicles, household contents, and other tangible items. A separate six-year contract period under MCL 600.5807 can apply to disputes over an insurance or service contract, but it does not extend the three-year tort deadline for the damage itself.
How is a total loss of personal property valued under Michigan law?
By fair market value at the time of loss. Michigan case law measures total-loss damages by the item's market value when it was destroyed, not its replacement cost, and caps repair recoveries at the diminution in fair market value. Our damage claim appraisals for Michigan clients document that market value with condition and comparable-sale evidence.
Does Michigan's no-fault system affect property damage recoveries?
Yes. Property protection insurance under MCL 500.3121 covers accidental damage to tangible property from a motor vehicle accident up to $1,000,000 per accident, with claims generally due within one year. Michigan's mini-tort, MCL 500.3135, separately caps recovery from an at-fault driver for uninsured vehicle damage at $3,000, a ceiling that does not apply to other damaged property such as tools or cargo.