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.
Mich. Comp. Laws § 500.2826
Liability for difference between actual value of property and amount expended to repair, rebuild, or replace
Applied in 10 court decisions — leading case O-So Detroit, Inc. v. Home Insurance (1992)
Most recently applied in 322 Mich. App. 422 - Debra Batton-Jajuga v. Farm Bureau General Insurance Company of Mi (December 2017)
1956, Act 218, Eff
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.