Is Renters Insurance Required in Michigan?

Renting a home or apartment in Michigan? Then you might be wondering whether you should get renters' insurance or not. Is it required by law in Michigan? Well, the short answer is no. Michigan law doesn’t mandate having renters insurance.  

However, your landlord might make it mandatory for you to have renters' insurance coverage to protect his own risks. And this may be done through a lease agreement. So, when you’re renting a place in Michigan, it’s very important to understand what your lease agreement says. In this case, if you don’t follow the lease terms, your landlord may also send you an eviction notice for breaking the agreement.  

And even if your landlord doesn’t require you to carry renters insurance, you should still get one. Not having sufficient renters insurance coverage can cost you thousands of dollars if something goes wrong in your rental apartment. One kitchen fire, one burst pipe, or one break-in can wipe out your personal belongings and leave you with costly repair bills. And a good policy can help repair or replace what’s damaged.  

Keep reading this article to learn in detail whether renters insurance is required in Michigan, why a landlord might require it, what it covers for you, the cost, and whether it is worth it.  

Is Renters Insurance Required in Michigan for Renting?

According Michigan Department of Insurance and Financial Services (DIFS), neither renters nor homeowners are legally required to carry any insurance for their homes or personal property. So, yes, the law is simple, and which is the State of Michigan won’t force you to have renters' insurance.  

However, the common practice is to comply with your landlord's lease agreement while renting a home. Your landlord has the legal right to mandate renters insurance. This means you can’t skip getting renters coverage even if the law itself doesn’t require it.  

And if you fail to carry the required insurance for your rental property, it will be considered a breach of the lease contract. For that, you might encounter an eviction notice from your landlord. As you have the right to sue your landlord for failing to maintain a habitable condition, similarly, your landlord may also file a lawsuit against you for breach of lease. And this isn’t something that we don’t see too often.  

Why Michigan Landlords Require It? 

The landlords in Michigan or any other state actually require it through the lease agreement to protect against the risks and unforeseen events that may occur on their property.   

For example, a fire might start from unattended cooking. If you sue your landlord for the damage, it could cause legal disputes. It may also create financial risk for the landlord, even though they aren’t responsible.  

And that’s why they require tenants to carry liability renters insurance, personal property coverage, or additional living expenses. Having these coverages also ensures you have the available financial resources when you need them the most.  

Consequences of Not Maintaining Required Renters Insurance

So far, you learned that renters insurance isn’t legally required, but your landlord may make it obligatory for you under lease terms that you signed while renting. And if you break your lease agreement or any clause of it that includes a renters insurance requirement, you may face the following consequences: 

• Lease termination, eviction notice, or penalties 
• Financial responsibility for any damage to the rental unit or injuries to guests or neighbours 
• You’ll have to pay for legal costs if someone sues you 
• You’ll face costly repair bills or out-of-pocket costs for events like theft, fire, or water damage 
• The landlord may sue you for compensation for not having liability insurance 
• You may face disputes over who will pay for temporary housing if your rental home becomes uninhabitable.

Besides, your landlord will get notified if your renters insurance coverage lapses and if your policy includes your landlord as an “additional interested party.” So, if your landlord's lease terms require it, make sure to maintain coverage for renters insurance.  

What Does Renters Insurance Cover in Michigan?  

Renters insurance in Michigan is designed to protect tenants from financial loss when unexpected events such as natural disasters, theft, vandalism, or fire damage their belongings, create liability issues, or make their home temporarily unlivable. It doesn’t cover the building itself because that’s your landlord's responsibility. But it does cover personal property, liability, and more.  

And most renters insurance policies offer two main types of coverage: basic coverage and additional coverage. Let’s discuss this here.  

Michigan Renters Insurance: Basic Coverage 

Most standard renters insurance in Michigan offers: 

• Personal Property Coverage: Pays to repair or replace your belongings if they’re damaged or destroyed by covered events like fire, theft, vandalism, or smoke. 
• Liability Coverage: Protects you if you accidentally cause injury to someone or damage to their property. 
• Medical Payment Coverage: Helps cover medical bills if someone is injured in your rental, regardless of fault. 
• Loss of Use/ Additional Living Expenses: Covers temporary housing costs if your rental becomes uninhabitable due to a covered loss.

Example: If a kitchen fire damages your couch, personal property coverage pays for a replacement. If your guest slips and breaks their arm, medical payments coverage helps with their hospital bill.  

Please note that if you choose ACV (Actual Cash Value) for property coverage, you’ll receive reimbursement equivalent to the value of damaged items after depreciation. For example, if your $1,200 laptop is stolen after three years of use, you’ll receive its depreciated value, roughly $400 (estimated). However, if you choose Replacement Cost Value (RCV), you’ll get the full amount needed to replace the stolen laptop with a brand-new one.   

Michigan Renters Insurance Coverage: Additional Coverage 

Many renters insurance companies offer extra options to expand your protection: 

• Replacement Cost Coverage: Pays the cost to buy a new item rather than its depreciated value. 
• Identity Theft Protection: Helps you recover from fraud or stolen personal information. 
• Water Backup Coverage: Covers damage from a backed-up drain or sump pump. 
• Valuable Items endorsements: Extra Coverage for high-value items like jewelry, collectibles, or electronics. 
• Earthquake or Flood Insurance: Separate policies or add-ons for natural disasters not covered in a standard policy.

Example: If a thief steals your laptop, replacement cost coverage ensures you get a brand-new one of similar quality. If your basement floods from a sump pump failure, water backup coverage pays for cleanup and repairs.  

Read More: What Is Renters Insurance and What Does It Cover?  

What Does Renters Insurance Not Cover in Michigan?

Many renters insurance policies in Michigan offer extensive protection, but it doesn’t cover everything. Here are common exclusions to be aware of: 

• Flood damage isn’t covered by renters insurance unless you have a separate flood insurance policy from the National Flood Insurance Program. 
• Earthquake damage is also excluded from standard renters' coverage unless you add specific coverage or an endorsement. 
• Pest infestation is also excluded, which means damage from bed bugs, rodents, or termites isn’t covered. 
• Wear and tear (normal aging) or maintenance issues aren’t part of coverage. 
• Your roommate’s belongings won’t be covered under personal property coverage. 
• Any business equipment or items stored in rental space or storage units for business purposes will not be covered unless you add extra commercial coverage for it.

How Much Is Renters Insurance in Michigan?

Many tenants in Michigan don’t even try getting quotes from renters insurance companies, thinking that it’s very expensive. However, contrary to popular belief, it’s actually very affordable. The average renters insurance costs you less $1 a day.  

According to our research, the average cost of Michigan renters insurance in 2025 is $24 per month or $288 per year. This rate could vary from $15 to $30, depending on your situation, as per the National Association of Insurance Commissioners (NAIC).  

The exact renters insurance (AKA tenant insurance/HO-4 insurance) cost can vary based on the following factors: 

• Coverage limit 
• Deductible amount 
• Location/Zip Code/City (high crime areas or flood zones can raise your rates) 
• Type of building (safety features like alarms or sprinklers can reduce costs) 
• Claim history (past claim history can increase your rate) 
• Additional coverage (add-ons like replacement cost coverage or identity theft protection raise the price) 
• The insurance company you choose

Learn More: How Much Does Renters Insurance Cost in Michigan?

Is Purchasing Renters Insurance Worth It in Michigan?

But even if your landlord doesn’t require it in the Great Lakes State, is it really wise to live in a rental home without renters insurance? No, it’s not. Renters insurance is surprisingly affordable, and the coverage it provides makes it worth buying. In fact, it can protect thousands of dollars’ worth of personal belongings for less than the price of a streaming subscription. 

It also includes liability coverage, which can help if you’re sued for accidental injury or property damage. Plus, you could face large out-of-pocket expenses after a fire, theft, or water damage. So, considering the financial protection, peace of mind, and relatively low cost, renters insurance is one of the most affordable ways to protect your budget and reduce risk while renting. 

How Can I Lower My Renters Insurance Rate in Michigan? 

Renters insurance isn’t pricey in Michigan. However, if you still think you’re paying too much for renters insurance, you can reduce your renters insurance cost. Here are a few smart ways: 

• Bundle policies: Combine renters insurance with auto insurance or other policies for a discount. 
• Increase your Deductible: A higher deductible usually lowers your monthly premium. 
• Improve Home Security: Adding smoke detectors, deadbolts, an alarm system, or keeping fire extinguishers can reduce risk and make you eligible for discounts or cheaper rates.  Shop Around: Compare quotes from multiple insurance companies to find the best deal. 
• Limit Claims: Avoid filing small claims that could raise your future premiums. 
• Ask for Discounts: Many insurers offer savings for renters, long-term customers, or those who pay annually.

Get Affordable Renters Insurance Coverage in Michigan with L.A. Insurance

If your Michigan landlord requires renters insurance coverage, make sure to get it from a reliable insurance agency. At L.A. Insurance, we make finding the right renters' policy in Michigan simple and affordable. We offer the most budget-friendly renters insurance for Michiganders. Receive your free renters insurance quote instantly and get covered within the same day. If you have any queries, call us at (800) 893-939.   

FAQs: Is Renters Insurance Legally Required in Michigan? 

What type of renters insurance do you need in Michigan?  

It depends on your situation. Most tenants in Michigan choose a standard renters insurance policy with personal property coverage, liability coverage, and loss of use protection. Plus, if you own high-value items, you can add replacement cost coverage or special endorsements. 

Is it illegal not to have homeowners insurance in Michigan?  

No, it’s not illegal. However, most mortgage lenders require home insurance as part of the loan agreement. Without the right homeowners insurance, you could be forced to buy coverage through the lender, often at a much higher cost.  

Can you get evicted for no renters insurance? 

Yes, if your lease requires renters insurance and you fail to maintain it, your landlord may have the right to terminate your rental agreement. This is a lease enforcement issue, not a state law requirement. 

Can I be sued for not having renters insurance?  

You can be sued if you cause property damage or injury and have no liability coverage. Renters insurance won’t stop a lawsuit, but it can help cover legal costs and settlements. 

How much time does it take to get renters' insurance in Michigan? 

You can get renters insurance coverage within 30 minutes or less, regardless of your location. However, the time may vary between 15 minutes to 24 hours, depending on the insurer you choose. Learn more about how long it takes to get renters insurance.