MI HB4331

Increases the maximum withholding amount for residential property fire losses from $12,000 to $24,000, effective July 1, 2024, with annual adjustments based on the Consumer Price Index.

Requires insurers to withhold 25% of actual cash value or final settlement (whichever is less) when settling fire, explosion, vandalism, or weather-related property damage claims, with the withheld amount held in trust by local government.

Allows cities, villages, and townships to use retained policy proceeds to repair, demolish, or clear damaged properties if the insured does not provide proof of repair within 120 days, with unused portions returned to the insured.

Requires insurers to notify the court when withholding from judgment settlements and provides insurers immunity from liability for withholding or transferring funds in compliance with the statute.

Applies to residential properties in counties with populations of 425,000 or more, or in smaller counties to municipalities with populations of 50,000 or more that have elected to participate in the withholding program.