PLMIeasy
A homeowner in Detroit with an MBPIA dwelling policy suffers a basement flood from an overflowing river. Where does coverage primarily come from?
AMBPIA basic dwelling coverage, because overflow from a river is treated as a windstorm peril under the policy
BThe MCCA catastrophic reimbursement pool
CThe Michigan Property and Casualty Guaranty Association
The National Flood Insurance Program (NFIP), since MBPIA does not cover flood
Why this is the answer
MBPIA's standard form excludes flood, just like a voluntary-market homeowners policy. A Michigan insured needing flood protection must purchase an NFIP policy or a private equivalent. The MCCA reimburses auto PIP claims, not property losses, and the MPCGA only steps in when a member insurer is insolvent.
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