The Cheapest and Best Renters Insurance in Detroit
The Companies With the Cheapest Renters Insurance in Detroit
In Detroit, many renters insurance companies offer policies with the same core coverage. That’s why it’s essential to consider how much a policy costs before purchasing it. If you want the cheapest rates, it’s best to shop around and compare quotes.
MoneyGeek analyzed insurers and found that the following providers offer cheap renters insurance in the city:
- USAA: $83 per year (Only provides policies for current and former military members)
- Farmers: $198 per year
USAA’s policies that include flood and earthquake damage coverage are an even better value for your money.
MoneyGeek analyzed the average costs based on policies with $20,000 in personal property coverage limits, $100,000 in liability coverage limits and a deductible of $500. The table below can help you understand how your insurance costs change based on your personal property coverage limits.
If you’re not a resident of Detroit, you can also compare renters insurance costs in Michigan.
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What Are the Best Renters Insurance Companies in Detroit?
MoneyGeek’s analysis of renters insurance companies shows that the following ones offer the best renters insurance policies in Detroit:
- Best Overall: USAA (Only provides policies to current and former military members)
- Runner-Up: Farmers
We ranked these companies based on our unique rating system that incorporates affordability, customer satisfaction ratings from J.D. Power and financial stability ratings from AM Best. These companies’ policies also include unique coverages that are rarely offered by other insurers.
Since USAA ranks well for affordability and customer service, it was MoneyGeek’s top pick for renters insurance in Detroit. However, the company only offers policies to current and former military members.
MoneyGeek consistently found that USAA is the best option for renters insurance across the nation. One unique coverage offering is for earthquake and flood damage, which isn’t usually available from other insurers. It also provides additional discounts to current military members, making the policy even cheaper.Read MoneyGeek's USAA renters Insurance Review
Farmers is the second-best option for renters insurance in Detroit. The insurer received fair scores across all categories, but was most noteworthy for its high customer satisfaction rating. To save on your premium cost, you can bundle your Farmers rental and car insurance policies.
Farmers offer the policyholders an opportunity to receive discounts on insurance, when they bundle their renters and auto insurance policies. The policyholders can also add Farmers’ identity shield to their policies, which includes a credit monitoring service and covers any losses related to identity theft.Read MoneyGeek's Farmers renters Insurance Review
The Average Cost of Renters Insurance in Detroit for 2023
renters insurance is equal to the average.
The average cost of insuring a rental home in Detroit is $249 per year. Compared to the national average of $159 per year, renters pay $90 more for insurance in Detroit.
What Factors Impact Renters Insurance Costs in Detroit?
While there are several factors that impact your renters insurance cost, the following have the greatest impact on the cost of your premium.
- Personal property coverage amount: Your policy’s personal property coverage limit significantly affects its cost. If you want to cover more of your valuble items, you would have to pay higher insurance premiums.
- Location: Your location also plays a role in determining your renters insurance costs. The insurers generally charge higher rates to renters living in areas with a high crime rate.
- Deductible: It refers to the amount the policyholder has to pay before the insurance company begins to pay. A policy with a higher deductible will cost you less on a monthly basis; however, you’ll have to pay more out of pocket when you file a claim.
- Actual Cash Value (ACV) vs Replacement Cost Value (RCV): An ACV policy costs less on a monthly basis, as the insurer would reimburse you for the depreciated value of your item. On the other hand, an RCV policy covers more on a monthly basis, but you’ll be reimbursed for your item at today’s costs.
- Liability coverage amount: The liability coverage limits of your policy do not have a major effect on its cost. Even if you add thousands of dollars worth of coverage, the cost of your policy will only increase by a few dollars per year.
Calculate How Much Renters Insurance You Need
Does My Detroit Neighborhood Impact Cost of Renters Insurance?
MoneyGeek’s research shows that your neighborhood doesn’t significantly impact the cost of your renters insurance policy. We found that it might only increase your insurance costs by a couple of dollars per month.
Understanding Renters Insurance in Detroit
You aren’t required by law to purchase an insurance policy in Detroit. However, MoneyGeek strongly recommends purchasing one as it’s an affordable way to protect your personal items in case of a covered loss. In some cases, your landlord may also require you to get renters insurance.
What Does Renters Insurance Cover in Detroit?
Since there are different renters insurance companies in Detroit, you should always shop around and compare quotes from other insurers to find the one that’s the best fit for your needs. A standard renters insurance policy is beneficial for renters living in areas with a high crime rate, as it can help them cover the loss of their valuable personal items in case of theft. This is especially true in Detroit, where, according to FBI data, the property crime rate in the city was 3,265 per 100,000 people in 2019 — 72% more than the national average.
If you live in an apartment or a house, a renters insurance policy can protect you from the risk of fire and water damage, which can happen anywhere. Insurers generally offer the following coverages with a standard renters insurance policy:
- Personal property coverage: This coverage pays for any damage to your personal items like furniture, jewelry or other valuable items due to a covered event like fire or theft.
- Additional living expenses: It covers the cost of a temporary living space, such as a hotel, if your rental property is uninhabitable due to a disaster.
- Liability insurance: If there’s any accident on your rental property, this coverage will cover the legal costs, court fees, etc.
- Medical payments coverage: If an individual gets injured due to an accident on your property, this coverage will pay for their medical bills and other hospital costs.
What Is Not Covered by Renters Insurance in Detroit?
There are many instances where a standard renters insurance policy doesn't provide coverage. For example, any damage to your home's structure won't be covered under your renters policy, as it's the owner's responsibility to purchase an insurance policy that covers the house's structure.
In the case of water damage, there are certain instances where a renters insurance policy provides coverage. However, flood-related damages aren’t covered by renters insurance. It's recommended that you buy incremental insurance through the National Flood Insurance Program (NFIP) to protect against floods.
A standard renters insurance policy also doesn't cover your roommate's possessions, damage from earthquakes, damage to your car or jewelry whose value exceeds the policy limits. However, since all policies are different, it's best to read your policy thoroughly to understand what it does and doesn't cover.
Frequently Asked Questions About Renters Insurance in Detroit
If you’re looking for the best renters insurance in Detroit, you should shop around and compare quotes from different insurers.
MoneyGeek researched the following frequently asked questions about renters insurance in the city to help you understand its cost and other details.
Renters Insurance in Detroit Analysis: Methodology
Moneygeek analyzed hundreds of renters insurance quotes in Detroit to help you find cheap renters insurance. The best renters insurance rankings were determined using data from J.D. Power, AM Best and our affordability metrics that are derived from a comprehensive analysis of quotes provided by Quadrant.
About Mark Fitzpatrick
- United States Department of Justice. "2019 Crime in the United States." Accessed June 9, 2022.