The Michigan rental market is hot for investors, but not so hot for renters. According to Apartment Guide, two-bedroom rentals are going for more than double what they rented for in 2020. The average rent in Michigan for a two-bedroom apartment was $1,243 in 2020 and is now $2,923 in 2021.
It’s logical to find ways to cut back on expenses when rent hikes happen. But skipping out on Michigan renters insurance coverage may be a bad idea. Your landlord may have insurance for the property, but your belongings aren’t included in the coverage.
Key takeaways
- Renters insurance is less than $42 a month and pays to repair or replace your personal possessions if damaged or stolen and pays for injured guests’ medical bills.
- Renters insurance coverage comes in four parts to help protect you and your belongings: Personal property, liability, loss of use and medical payments.
- Your coverage options primarily relate to how much coverage you buy --experts recommend you get replacement value for your belongings and $300,000 in liability.
- The best renters insurance companies in Michigan provide affordable prices with great customer service.
- Comparison shopping is one of the best ways to find cheap renters insurance rates.
- Why do you need Michigan renters insurance?
- How much is renters insurance in Michigan?
- Best renters insurance in Michigan
- Cheapest renters insurance companies in Michigan
- Renters insurance cost in Michigan by city
- How to find cheap renters insurance rate on an insurance policy
- How much renters insurance do I need?
- Frequently Asked Questions
Why do you need Michigan renters insurance?
Michigan renters insurance will pay for damages and losses to your belongings. In most cases, the coverage even extends to events that occur outside of your rental. For example, if your iPad is stolen on a trip, renters insurance will likely replace it.
How much is renters insurance in Michigan?
Renters insurance premiums are far cheaper than having to pay for new furniture, electronics and valuables. The average cost of renters insurance in Michigan is $506 per year with a personal property amount of $40,000.
The cost of Michigan renters insurance is higher than the national average of $326 due to several factors, such as the number of claims in the state and crime rates. Statistically, 1 in 63 Michigan residents are victims of property crime. That’s why you shouldn’t skip rental coverage. If someone breaks into your house, Michigan renters insurance will pay for the cost of replacing your stolen goods.
If coverage sounds like more than you can afford, keep reading. Insurance.com’s findings on the average renters insurance in Michigan costs account for a wide sampling of quotes. Your rate may be considerably lower based on your ZIP code, how much property you plan on insuring and the company you choose.
Best renters insurance in Michigan
To help find the best insurance companies in Michigan, we reviewed renters insurance companies across several service metrics. We collected quotes from the top insurance companies operating in the state and narrowed down the carriers based on pricing, policy options, number of customer complaints from the National Association of Insurance Commissioners (NAIC) database, scores from J.D. Power’s annual customer satisfaction study and financial strength based on AM Best’s credit ratings. The best renters insurance companies for Michigan are:
- Best renters insurance company overall: Allstate
- Cheapest renters insurance in Michigan: State Farm
- Best military renters insurance: USAA
- Best for bundling renters and auto insurance: Auto Owners
- Most flexible: Safeco
| Company | Best for | Michigan market share | J.D. Power rating | NAIC complaints | AM Best financial strength rating | Online quote tool |
|---|---|---|---|---|---|---|
| Allstate | Overall | 8.16% | 841/1,000 | 0.28 (below average) | A+ | Yes |
| State Farm | Cheapest renters coverage | 15.92% | 836/1,000 | 1.50 (above average) | A | Yes |
| USAA | Military | 3.22% | 888/1.000 | 1.87 (above average) | A++ | Yes |
| Auto Owners | Bundling car and renters insurance | 14.98% | NR | 0.86 (below average) | A++ | No |
| Safeco | Flexibility when filing claims or managing your coverage | NR | NR | 2.67 (above average) | A | Yes |
Allstate
There are times when buying the cheapest isn’t necessarily the best. If you’re in search of value from your carrier and may be willing to pay a little more, Allstate may be the all around best renters insurance Michigan company.
Allstate is financially stable, with a rating of A+ from AM Best. Financial strength is important when it’s time for an insurance company to pay claims. The provider is popular in Michigan with 8% in market share. Most importantly, Allstate’s customer service is stellar. The carrier has the lowest number of customer complaints recorded with the NAIC of all the insurance companies on our “best of” list.
Pros:
- Strong presence in Michigan with offices in 126 cities
- File a claim through an agent, over the phone, online or through the mobile app
- High customer satisfaction ratings
- User-friendly mobile app
Cons:
- Few discounts available
Special coverages:
- Scheduled personal property coverage for jewelry, antiques and other expensive items
- Flood insurance
- Personal umbrella policy
- Identity theft restoration
State Farm
State Farm insures the most renters and offers the cheapest renters insurance rates in Michigan. It should be noted that USAA’s premiums are lower but coverage is only available to military and family members. State Farm’s premiums average between $236 and $350 per year, depending on your deductible and limits. That’s less than $20 per month for quality coverage from the top insurance company in the country.
Pros:
- Local agents and offices in 281 Michigan cities
- The cheapest car insurance in Michigan
- Add-ons and optional riders available including home business coverage
- Robust mobile app
- Library of online resources and videos about insurance
- File a claim through an agent, over the phone, online or through the mobile app
Cons:
- Above-average customer complaints
Special coverages:
- Additional business property
- Incidental business liability
- Pet medical insurance
- Identity theft restoration
- Additional liability limits
USAA
USAA beats all the state’s carriers on price and customer satisfaction. However, you’ll need to become a member to access the award-winning line of policies. Membership is only open to veterans, military members and their families. If you’re able to join, you’ll find the lowest rates in the state. And best of all, the already cheap renters insurance Michigan premium offered by USAA includes flood coverage.
Pros:
- Free USAA membership for those who qualify
- Robust mobile app allows you to file and track claims
- Number one in customer service in J.D. Power’s Home Insurance Study
- Cheapest renters insurance in Michigan
- Includes flood insurance for free
- Access to additional shopping and banking discounts
Cons:
- Only available to veterans, retired and active military personnel and close family members
- No physical offices
Special coverages:
- Replacement cost
- Personal property rider
Safeco
Michigan-based Auto Owners Insurance is the second most popular insurance company in the state, writing 14.98% of Michigan renters insurance policies. Besides being the home-grown carrier of choice, residents turn to Auto Owners in search of cheap auto insurance to get relief from the state’s extremely high vehicle insurance rates.
Most customers choose to bundle renters or homeowners insurance with car insurance to reduce their bill. Besides renters and auto coverage, Auto Owners also offers landlord, recreational vehicle, business and life insurance.
Pros:
- Fast claims payouts
- The option to receive a prepaid debit card instead of a check for claims payouts. The card can be used to pay wherever Visa is accepted.
- High customer satisfaction
- More discounts offered than average
Cons:
- No online quotes available — you’ll need to contact a local, independent agent for one
- Mobile app has limited functionality. Claims can’t be filed through the app.
Special coverages:
- Personal property
- Renters Plus that covers water back-up of drains and sewers, refrigerated products up to $750 and deductible-free glass replacement.
Auto Owners
Safeco may have the most robust level of service both digitally and physically. While most companies have moved most of their operations online, Safeco maintains a good balance between personalized care through independent agents and the option to handle your renters insurance through the mobile app or website.
If you prefer to do business face to face, Safeco’s independent agents are based across 265 cities in Michigan. Otherwise, the newly redesigned mobile app allows you to file and track claims, pay your bills, contact an agent and even add your digital insurance card to Apple Wallet.
Pros:
- Claim filing available online, through the mobile app, by calling Safeco or visiting a local agent
- Agents and offices throughout the state
- Redesigned mobile app
- Worldwide personal property coverage
- Pay your bill with a debit or credit card through the mobile app
Cons:
- Purchasing a policy online after using the quote tool isn’t possible
- Above-average complaints
Special coverages:
- Replacement cost
- Valuable article rider
- Identity recovery
Cheapest renters insurance companies in Michigan
The insurance company you choose can make all the difference in how much you’ll pay for renters insurance. That’s why you should collect several Michigan renters insurance quotes to compare.
Take a look at how annual renters insurance rates vary by insurance company for the same level of coverage. We collected quotes from the top insurance carriers in the state and sorted them according to price by level of coverage. The cheapest renters insurance companies were USAA and State Farm.
The average cost of renters insurance is $326 a year, or about $27 a month. That’s the national average cost for a policy with recommended levels of $40,000 for personal property, with a $1,000 deductible and $100,000 of liability protection, according to an insurance renters cost analysis by Insurance.com. For Michigan, the cost is around $500, on average. You can find out how the insurance providers below compare to the average rate for the state and nation.
Here’s how the nine cheapest insurance providers compare for an insurance policy of various coverage limits:
| Company | Cost for $20,000 in property, $100,000 in liability and $500 deductible | Cost for $20,000 in property, $100,000 in liability and $1,000 deductible | Cost for $40,000 in property, $100,000 in liability and $1,000 deductible | Cost for $40,000 in property, $300,000 in liability and $1,000 deductible |
|---|---|---|---|---|
| USAA | $242 | $196 | $261 | $286 |
| State Farm | $272 | $236 | $340 | $350 |
| Farm Bureau Insurance Company of Michigan | $345 | $292 | $433 | $444 |
| Safeco | $329 | $284 | $459 | $479 |
| Fire Insurance Exchange | $415 | $349 | $470 | $489 |
| Allstate | $391 | $321 | $479 | $518 |
| Memberselect | $348 | $307 | $485 | $497 |
| Auto Owners | $406 | $368 | $542 | $552 |
| Citizens | $660 | $616 | $1,023 | $1,025 |
Renters insurance cost in Michigan by city
Below you'll see the average renters insurance rate in Michigan’s largest cities for a policy with $40,000 in property coverage, a $1,000 deductible and $100,000 of liability. Ann Arbor was the cheapest, and Detroit the most expensive. To see the average price for renters insurance by ZIP code for nearly every neighborhood in the state, visit our renters insurance guide and use the average renters rate calculator. It also shows renters insurance rates for several renters insurance coverage options.
| City | Annual average rate | Monthly rate |
|---|---|---|
| Ann Arbor | $388 | $32 |
| Lansing | $414 | $35 |
| Grand Rapids | $431 | $36 |
| Livonia | $444 | $37 |
| Sterling Heights | $445 | $37 |
| Westland | $533 | $44 |
| Warren | $545 | $45 |
| Dearborn | $562 | $47 |
| Flint | $844 | $70 |
| Detroit | $1,056 | $88 |
How to find cheap renters insurance rate on an insurance policy
As you can see, the carrier you choose can make all the difference on the insurance rate you’ll pay for coverage. Besides getting Michigan renters insurance quotes periodically to ensure you’re paying the best renters insurance premium for your needs, there are other ways you can save on renters insurance in Michigan. Here are ways to cut the cost of renters insurance coverage:
Add a security system
Most carriers will lower your rate for security-related improvements such as deadbolts, video cameras or a security system. Wireless systems are best — you won’t have to run wires or put nails into the rental’s walls. In addition, you can take the system with you if you move.
Change your deductible
Doubling your deductible from $500 to $1,000 could drop your annual insurance rate by roughly $40 or more. Using State Farm as an example, $20,000 in personal property with a $500 deductible costs $272. The same coverage with a $1,000 deductible is $236. Before you bump up your deductible, consider how likely it is that you’ll file a claim and whether you have the funds to pay the higher deductible out of pocket.
Bundle renters with auto insurance
If you also own a vehicle, bundling auto insurance with your renters policy is one of the best options for lowering your premiums for both. Auto insurance rates in Michigan are among the highest in the nation, especially if you live in a Detroit zip code, but you can save an average of 11% on your Michigan car insurance by buying both renter and car policies from the same company.
How much renters insurance do I need?
Knowing how much renters insurance you’ll need takes some time to sort out. Renters insurance coverage comes in four parts to help protect you and your belongings: Personal property, liability, loss of use and medical payments. Your coverage options primarily relate to how much coverage you buy. It's a good idea to get as much insurance as you can afford, and experts recommend you get $300,000 in liability. Here’s how to calculate amounts for each coverage on a renters insurance policy:
Personal property
Renters insurance covers your personal items. This portion of your renters policy accounts for the value of your belongings. To figure out how much you need, add up the cost of all your belongings including furniture, clothes, electronics and more. Typical limits are $20,000 or $40,000, although most carriers offer higher amounts.
One other thing to consider is whether you’re comfortable with cash value or replacement cost insurance for the contents of your apartment or home. Say your laptop is stolen. Cash value will pay you for the value of the laptop based on its age and condition. You would have to find one for the same price and condition of the one you lost— or pay the difference out of pocket for a new one. Replacement cost value coverage is typically more, but your insurance company will reimburse you for the purchase of a new version of the laptop you lost.
Liability
Liability protection insurance covers medical expenses for injuries that happen on your property and your legal bills such as attorney’s fees (within limits) and judgements against you. If you don’t own many assets such as a home or investment account, liability coverage of $100,000 should suffice. If you have assets you don’t want to lose in a lawsuit, a higher liability limit of $300,000 or more is better.
Loss of use or additional living expenses
Loss of use coverage pays for your living expenses if you can’t live in your rental home temporarily. There may have been a kitchen fire or flood and you have to move out while the rental is repaired. Loss of use pays for your living expenses, such as rent, hotel and meals, while you wait to move back. It is also called "additional living expenses." This coverage is typically included in home insurance and renters policies for no extra cost.
Medical payments
Medical payments is one of the coverage options insurance carriers offer renters (it's also available for home insurance.) It pays up to $5,000 for medical expenses for guests injured in your home, regardless of fault.
Frequently Asked Questions
Is renters insurance required in Michigan?
Renters insurance is not mandated in the state of Michigan, although some landlords may require you to have renters insurance before they agree to rent to you. Coverage is low-cost and can provide you with invaluable financial protection if your furniture, electronics and other belongings are stolen or damaged. In addition, you’ll have legal and medical coverage if a guest is injured in your apartment.
