renters insurance costs an average of about $249 per year. A standard renters insurance policy will usually cover your personal belongings, loss of use, and personal liability, as well as medical payments if someone were to get injured in your home.

Once you’ve signed the lease to your apartment, the hard work of moving has just begun. Luckily, finding

renters insurance

doesn’t have to be one of those tedious items. It’s one of the easiest types of insurance to obtain, and it’s one of the most affordable kinds of insurance there is.

New to renters insurance? Insurance comparison and broker app

Jerry

has put together this guide of what you should know about renters insurance in Michigan—from what it is to what it covers to how to save money by bundling insurance policies.

What is renters insurance?

Renters insurance gives you financial protection for your personal items, among a number of other important protections, like personal liability.

The specifics of renters insurance coverage will vary from policy to policy, but most policies will include the following:

Property coverage (Coverage C): Covers loss and/or damage of your personal property if they are damaged or lost because of a named peril

Loss of use/Additional living expenses (ALE) coverage (Coverage D): Covers reasonable living expenses, like a hotel room or another rental, if your current rental becomes temporarily uninhabitable because of an included peril

Personal liability (Coverage E): Covers legal fees if someone is injured or their property is damaged in your home

Medical payments (Coverage F): Covers medical expenses for someone if they were injured on your property

Your personal property can be covered up to a certain amount, which you can determine by putting together a personal inventory. If your landlord is requiring you to purchase renters insurance, chances are they may have minimum coverage requirements for personal liability coverage. Common personal liability limit options include $100,000, $300,000, and $500,000.

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What does renters insurance cover?

Renters insurance covers your personal belongings if they’re lost or damaged, but only if your policy specifically the cause as a covered peril. Named perils will vary from place to place and policy to policy.

Common named perils in a standard renters insurance policy include:

Fire

Smoke

Lightning

Hail

Windstorms

Falling objects

Explosions

Vandalism

Theft

Read your policy’s named perils closely, and keep an eye out for unclear language. For example, both damages from tornadoes and severe thunderstorms are often covered under windstorm damage, but you’ll want to make sure your own policy specifically notates that.

Pay attention to exclusions, too, which would be additional circumstances that are excluded from coverage by your policy.

What does renters insurance not cover?

While there’s a lot renters insurance can cover, there are some things it won’t. Common things not covered under renters insurance policies include:

Flood damage: Your policy more than likely won’t protect you from damage caused by flooding. Flood insurance, even for renters, usually needs to be purchased separately. You can find flood coverage through the

National Flood Insurance Program (NFIP)

or a private carrier.

Valuables: While it depends on your coverage, a standard renters insurance policy might not cover your valuable jewelry or one-of-a-kind, collector’s edition items. If they’re not included, you’ll need to purchase additional coverage.

Your car: Your vehicle will need its own separate

car insurance policy

for protection—even if it’s damaged by something on the rental property.

Key Takeaway Renters insurance covers your belongings if they’re lost, damaged, or stolen—as long as the cause is a named peril in your policy.

MORE:

Everything you ever wanted to know about Michigan car insurance laws (and more)

Is renters insurance required in Michigan?

In Michigan, renters insurance isn’t required by law. Your landlord, however, may still require you to purchase it. If they don’t, renters insurance is still worth consideration.

Renters insurance is one of the most affordable kinds of insurance available. In Michigan, the average cost of renters insurance is $249 per year. While that might be $90 more than the national average, that still comes out to less than $21 per month.

How to build a Michigan renters insurance policy

Building a Michigan renters insurance policy is as simple as following a few easy steps.

First, put together an inventory of personal assets. Room by room, you’ll want to make a record of your significant personal items—like electronics, musical instruments, furniture, or appliances.

For each item, include as much of the following as you can:

Photo of item

Number of item(s)

Date purchased

Cost of item when you bought it

Brand and serial numbers, if you have them

Not only will this give you an idea of how much coverage you’ll want for personal belongings (and whether you’ll want additional protection for valuables), but it also will make it much easier to file a claim in the future.

Next, select a personal liability limit. If your landlord is requiring you to purchase renters insurance, they might set a minimum amount of coverage for personal liability. If they haven’t set a requirement, you can pick what you think is right for you.

Finally, verify the extent of your policy’s coverage, and note any gaps. Make sure the named perils you want are listed and read the language carefully. If there are things your renters insurance policy won’t be covering, like flood damage or valuable items, make a plan to purchase additional coverage.

Actual cash value vs. replacement cost

If your personal belongings get lost, stolen, or damaged, your insurance will either cover them with the actual cash value (ACV) or replacement cost.

While both will pay you for the damage, ACV will only cover the item’s current market value today, which may have depreciated. Conversely, replacement cost coverage will pay out whatever it would cost to replace your item with a comparable one.

Here’s an example: imagine you purchased an electric stove six years ago for $1,200. If a lightning strike led to a power surge that caused your stove to stop working, ACV would pay out the current value of the stove. If that stove was now only worth $600, your insurance would give you $600 toward replacing it.

However, with replacement cost coverage, you’d likely be paid the amount it costs to purchase a comparable stove today, regardless of its current value. That said, replacement cost will be more expensive upfront than ACV—which you’ll want to consider when buying your policy.

MORE:

What is property and casualty insurance?

How to find cheap renters and car insurance

Renters insurance policies are already cheap—-but why stop the savings there? By bundling your

renters insurance

with your car insurance policy, you might see discounts for both ranging from 5% to 25%!

Not sure where to get started? Insurance super app

Jerry

can help you quickly and easily find and compare quotes from top insurance companies. From there, you can pick the best policy for you at the best price. Jerry can even help you cancel your old policy.

“
Jerry
let me customize my preferred auto and renters insurance so that I saved $100. I never even considered looking into Travelers but now they’re my policyholders! This app rocks.” —Jamie A.

Is renters insurance worth it?

It usually is! Renters insurance is one of the most affordable types of insurance, and for what often amounts to tens of dollars a month, it can save you thousands if you ever need to make a claim. In most cases, renters insurance is almost always worth it.

What is the average cost of renters insurance in Michigan?

Like any insurance policy, the cost of renters insurance can vary and depends on a number of factors. In Michigan, the average cost of renters insurance is $249 per year or less than $21 per month.

You could save 15% or more on renters insurance by bundling

Bundle your renters and auto insurance with Jerry and save!

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