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Landlords want to protect themselves from liability, and having landlord's insurance is the first step. However, it doesn't cover tenant's belongings, so you may want them to get renters insurance.
The state government in Michigan claims that renters insurance is a smart buy. Knowing tenants should have it is the first step. Now, you have to focus on what it is, what it covers, how it works, and if you can require tenants to get it.
Renters insurance in Michigan is great for many situations, and you'll learn about it all in this article.
What Is Michigan Renters Insurance?
Renters insurance helps a tenant protect their personal property and offers liability coverage in case of an accident.
Overall, there aren't as many tenants in this state as there are in others, which means it's harder to find renters insurance in Michigan. However, it's not impossible. Today, you'll learn about the benefits of a renters insurance policy for tenants and what providers are available.
Average Cost of Renters Insurance in Michigan Per Year/Month
The Insurance Information Institute claims that the average cost of renters insurance in Michigan tends to be $15 per month or about $182 per year. It's above the national average by about $2. However, tenants must realize that renters insurance rates go up or down based on the amount of coverage they get, their location, and many other factors.
How Much Does Michigan Renters Insurance Cost (Based on Popular Cities)?
According to ValuePenguin, renters insurance in Michigan is higher in Detroit, especially when you focus on other states nearby, such as Wyoming.
Michigan has 25 large cities, and the price for renters insurance can vary significantly per month and year. Let's take a look at the renters insurance rates in these popular cities:
- Ann Arbor - $276 per year
- Detroit - $824 per year
- Westland - $309 per year
- Sterling Heights - $294 per year
- Lansing - $305 per year
- Kalamazoo - $293 per year
- Grand Rapids - $284 per year
Is Renters Insurance Required in Michigan?
Landlords and tenants often ask: Is renters insurance required in Michigan? The state doesn't mandate tenants get renters insurance, but landlords can demand it before signing a lease agreement.
As a landlord, it's up to you to protect your private property. Since someone else is living there, it's wise to ensure that they have Michigan renters insurance. Standard policies include coverage for $15,000 to $20,000 in personal belongings and also offer liability protection if someone is hurt at the residence. Therefore, it's worthwhile.
What Does Renters Insurance Cover in Michigan?
In most cases, Michigan renters insurance policies include loss of use, personal property, liability, and medical payments coverage, but tenants can also buy floaters or endorsements. Here's an overview of the options:
Personal Property Coverage
Personal property coverage covers the cost of replacing a tenant's items when they're damaged after a covered event. Replacement cost value allows them to get new items, though it costs more than the traditional actual cash value option.
Liability Coverage
Liability coverage will protect the tenant when they're responsible for bodily injury or property damage. If the other party sues them, it covers the legal fees.
Medical Payments to Others
If someone gets hurt in the tenant's home, the policy covers some of the medical bills.
Loss of Use
If a covered event forces the tenant out of the home or apartment, they are reimbursed for their living expenses. It often covers laundry, hotel rooms, and meals.
Floaters and Endorsements
All insurance companies offer some endorsements that help tenants customize their policies for more money. Common options include valuable items, earthquakes, and identity theft protection.
What Does Renters Insurance in Michigan NOT Cover?
Though the cheapest renters insurance companies in Michigan provide coverage for personal property, liability, and more, they might not cover these things:
- Loss/Damage to Unscheduled Valuables - High-value items, such as electronics, jewelry, and artwork, aren't typically covered under a standard policy. They must be scheduled separately, which raises the price.
- Damage Caused by a Non-covered Event - Some events won't be covered under renters insurance, such as floods, wildfires, and earthquakes.
- Damages Over the Policy Limit - Coverage limits determine how much the policy pays after covered losses.
How to Choose the Right Policy
To find the best renters insurance companies, it's important to compare renters insurance options. Here are a few factors that can affect the price:
- Weather - Michigan often sees over 16 feet of snow in some areas. This can lead to significant damage because of cold temperatures and weight. Compare renters insurance products to ensure you're covered in those events.
- Property Information - The building itself could increase the premiums. If the tenant lives in an older unit without safety features, they're charged more.
- Personal Information - Tenants who have filed many claims or have no rental history might be a higher risk. They may not get the cheapest renters insurance possible.
- Enough Coverage - Rental insurance is designed to reimburse tenants for damaged personal property. They should ensure they get enough coverage to get new items if the need arises.
Available Discounts in Michigan
The top renters insurance companies all offer some discounts, but each brand is different. Therefore, if tenants want to lower their renters insurance rates, it might be wise for them to research each one's discount options. Here are the most common ones:
- Discount for multiple policies from one provider
- Diminishing deductible discount
- No claims history discount
- Safety devices discount
- Early shopper discount
- Online purchase discount
- Online autopay enrollment discount
- Retired seniors discount
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
All landlords should believe in insurance, including landlord's insurance and renters insurance. If tenants are willing to protect their own items, it can make the deal a little sweeter. Here are the reasons why you should be requiring it as part of the lease:
- Added Protection for Tenants - Renters insurance will protect the tenant's personal belongings after a covered event. Therefore, they can buy new things without having to dip into their savings.
- Reduced Lawsuit Risk - Tenants can sue if the building they're living in is damaged through no fault of their own. Without renters insurance, they will likely come after the landlord to get reimbursed. By requiring it, you are protecting yourself from lawsuits.
- Reduces Personal Liability - If someone gets hurt at the tenant's home, the injured party can sue. Landlords often get the brunt of this, but renters insurance will come into play, and the tenant will be held responsible. No one will have to pay out of pocket because the insurer takes care of it all (up to the policy limit).
Top 5 Best Renters Insurance Companies in Michigan
Are you ready to help tenants find the best renters insurance companies in Michigan? Here are the top five choices:
1. Lemonade Renters Insurance
Lemonade tends to offer the cheapest renters insurance coverage, regardless of the state. Plans are about $5 per month, though it goes higher based on the amount of coverage needed.
Overall, Lemonade features a mobile app, which is where tenants sign up for policies and file insurance claims. Usually, there are quick payments.
However, customer service does lack slightly. It's impossible to call a representative; instead, everything is done online. Still, it only takes two minutes to sign up for a policy, and Lemonade has a giveback program, which donates any leftover money each year to charities.
2. Liberty Mutual Renters Insurance
Liberty Mutual is another great renters insurance company that offers affordable rates. Policies start at about $5 per month, which is below the national average ($15 per month). At that price, it's possible to get full renters insurance coverage, including medical payments, loss of use, personal property, and liability.
Though there aren't many discounts available, tenants can bundle their renters and auto insurance together to save. Plus, the brand has more than 100 years of experience in the industry, which translates to excellent customer service.
3. Farmers Renters Insurance
Farmers is another excellent renters insurance company that offers personal property, loss of use, liability, and medical payments coverage in every policy. Plus, it's unique because of its non-smoking discount. If tenants quit smoking, they can save money!
Overall, it offers six deductible options, some of which are as low as $100. Plus, there's no limit on personal property, and the renters insurance rates tenants pay are decent. Likewise, customer service is excellent, and there's an endorsement for identity theft restoration.
4. State Farm Renters Insurance
If tenants want excellent renters insurance coverage, they should check out State Farm. It has affordable rates ($18 per month) and has great customer service. People like the low prices and assistance they receive from customer support.
The only downside here is that State Farm doesn't provide many extra coverages. For example, there's no replacement cost coverage, so tenants may not get full value for their items.
5. Travelers Renters Insurance
Those who want renters insurance coverage for less should think of buying Travelers. The average price per month is about $15, which is 42 percent cheaper than the state's average. Likewise, the company has many discounts, including safety devices, and being claim-free. Replacement cost coverage is available for a higher fee, as well.
Though tenants will like the low renters insurance rates, the customer service is mediocre at best. People often complain about long wait times and confusion regarding the claims process.
What Is DoorLoop?
Landlords should require tenants to purchase renters insurance, and it's up to them to keep everything organized. DoorLoop is a property management software to help landlords, whether they have mixed-use portfolios or manage commercial/residential properties. It will assist them in these ways:
- Collect rent automatically.
- Manage rental portfolios.
- Manage maintenance requests online.
- Create a free and custom website for tenants to apply and landlords to market vacancies online.
- Allow tenants to use the online tenant portal.
- Manage accounting tasks.
With DoorLoop, anything is possible. You can learn more about it and schedule your demo to start experiencing the benefits it offers.
Why Work with DoorLoop
Do you want your tenants to have a renters insurance policy in place before they move in? DoorLoop can help you with this. They can submit their own insurance companies with ease. However, you can let tenants apply for renters insurance through the tenant application or portal, which is all powered by SURE/Lemonade, depending on the state. Learn how DoorLoop helps with renters insurance!
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