Michigan Compiled Laws

Mich. Comp. Laws § 500.2826 (2026)

Liability for difference between actual value of property and amount expended to repair, rebuild, or replace.

✓ current as of July 2026

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THE INSURANCE CODE OF 1956

Act 218 of 1956

500.2826 Liability for difference between actual value of property and amount expended to repair, rebuild, or replace.

Sec. 2826.

An insurer may issue a fire insurance policy, insuring property, by which the insurer agrees to reimburse and indemnify the insured for the difference between the actual value of the insured property at the time any loss or damages occurs, and the amount actually expended to repair, rebuild, or replace with new materials of like size, kind, and quality, but not to exceed the amount of liability covered by the fire policy. A fire policy issued pursuant to this section may provide that there shall be no liability by the insurer to pay the amount specified in the policy unless the property damaged is actually repaired, rebuilt, or replaced at the same or another site.

History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1990, Act 305, Imd. Eff. Dec. 14, 1990

PopularName Notes:

Act 218

Notes of Decisions

Cited in 12 cases, 1988–2017 · leading case: Smith v. Michigan Basic Prop. Ins., 490 N.W.2d 864 (Mich. 1992).

Sort: Relevance Newest Treatment

Smith v. Michigan Basic Prop. Ins., 490 N.W.2d 864 (Mich. 1992). · cites it 4× “[MCL 500.2826; MSA 24.12826. Emphasis added.”

Casey v. Auto-Owners Ins., 729 N.W.2d 277 (Mich. Ct. App. 2007). “2104(3) and MCL 500.2826, it was allowed to set limits on its liability in replacement-cost policies.”

Singer v. Am. States Ins., 631 N.W.2d 34 (Mich. Ct. App. 2001). “See MCL 500.2826 and Smith v Michigan Basic Property Ins Ass’n, 441 Mich 181, 189 ; 490 NW2d 864 (1992).”

Salesin v. State Farm Fire & Cas. Co., 229 Mich. App. 346 (Mich. Ct. App. 1998). · cites it 2× “] We first note that the Legislature revised § 2826 of the Insurance Code, MCL 500.2826; MSA 24.12826, in 1990. The statute now provides that a fire insurance policy “may provide that there shall be no liability by the insurer to pay the amount specified in the policy unless the…”

Debra Batton-Jajuga v. Farm Bureau Gen. Ins. Co. of Mi, 913 N.W.2d 351 (Mich. Ct. App. 2017). “Specifically, under MCL 500.2826, an insurer may "reimburse and indemnify the insured" for the amount above the property's actual cash value that is "actually expended to repair, rebuild, or replace" the damaged property, not to exceed the coverage cap.”

McCahill v. Com. Union Ins., 446 N.W.2d 579 (Mich. Ct. App. 1989). “As support, defendant cites MCL 500.2826; MSA 24.12826, which states: Riders and endorsements may, in consideration of adequate premium or premium deposit, be added to the standard fire insurance policy, insuring property, whereby the insurer agrees to reimburse and indemnify…”

Pollock v. Fire Ins. Exch., 423 N.W.2d 234 (Mich. Ct. App. 1988). “MCL 500.2826; MSA 24.12826 provides as follows: Riders and endorsements may, in consideration of adequate premium or premium deposit, be added to the standard fire insurance policy, insuring property, whereby the insurer agrees to reimburse and indemnify the insured for the…”

Dupree v. Auto-Owners Ins. Co, 857 N.W.2d 247 (Mich. 2014). “If the appraisers fail to agree within a reasonable time, they shah submit their differences to the umpire.”

Cortez v. Fire Ins. Exch., 493 N.W.2d 505 (Mich. Ct. App. 1992). · cites it 2× “However, §2826, MCL 500.2826; MSA 24.12826, addresses replacement-cost insurance provisions that require the insurer to provide replacement with *669 "new materials of like size, kind and quality.”

O-So Detroit, Inc. v. Home Ins., 973 F.2d 498 (6th Cir. 1992). “” Mich. Comp.Laws Ann. § 500.2826 (West 1987).”

Debra Batton-Jajuga v. Farm Bureau Gen. Ins. Co. of Mi (Mich. Ct. App. 2017). “Specifically, under MCL 500.2826, an insurer may “reimburse and indemnify the insured” for the amount above the property’s actual cash value that is “actually expended to repair, rebuild, or replace” the damaged property, not to exceed the coverage cap.”

Craft Rec. Co. LLC v. Home-Owners Ins. Co. (Mich. Ct. App. 2015). “Resolution turns on whether defendant’s insurance policy was authorized under MCL 500.2826 or MCL 500.2827, provisions of the Michigan Insurance Code, MCL 500.”

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