Your renters insurance cost depends on the amount of coverage you want, as well as your claims history and location. The cheapest state's average renters insurance cost is $10 per month, while the most expensive state's average monthly cost is $31. The cost of renters insurance differs considerably by state, but it's an affordable investment overall.
This article will cover:
Renters insurance costs by state
Your location makes a difference when it comes to renters insurance rates. Alaska, New Hampshire and South Dakota have the cheapest average renters insurance. Mississippians pay the most, at $374 a year, or $155 more than the national average of $219.
|State||Average annual premium||Average monthly premium|
|Note: Average rates are based on online quotes from provider websites. Your rates may vary|
Average renters insurance cost: cheapest states
- Alaska: $125
- New Hampshire: $138
- South Dakota: $140
- Maine: $154
- Vermont: $156
Average renters insurance cost: expensive states
- Mississippi: $374
- Oklahoma: $348
- Georgia: $346
- Michigan: $345
- Alabama: $334
Four out of the five most expensive states for renters insurance are all southern states prone to extreme weather, such as hurricanes.
Find affordable renters insurance in your state.
Renters insurance costs by company
Companies may offer vastly different renters insurance premiums. Nationwide offers the cheapest average premium among the companies we researched, at $195 a year.
|Company||Average annual premium|
|Note: Average rates are based on online quotes from provider websites. Your rates may vary|
Renters insurance costs by coverage amount
You would need to take into account the worth of belongings when deciding your coverage amount. This includes your TV, mattress, furniture, musical instruments, and electronics.
When purchasing a renters insurance policy, you'll have to decide how much coverage you need. Here are national average rates for different amounts of personal property protection.
|Coverage||Average annual renters insurance cost|
$13,999 and under
$14,000 - $19,999
$20,000 - $25,999
$26,000 - $31,999
$32,000 - $37,999
$38,000 - $43,999
$44,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 and over
|Source: National Association of Insurance Commissioners (NAIC); Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner's Insurance Report: Data for 2019.|
Average renters insurance rates by city
We looked at quotes in the 10 most populated cities in the U.S. to find the average renters insurance cost in each city. Among the most populated cities, Houston has the highest average premium.
|City||Average annual premium|
|Note: Average rates are based on online quotes from provider websites. Your rates may vary.|
States with the most renters
New York has the highest percentage of renter-occupied housing units. This stands in stark contrast to states like Maine, where only 27% of housing units are rented according to the U.S. Census. Housing trends vary by state. Here are some of the most popular states for renting:
|State||Number of renter-occupied housing units||Percentage of renter-occupied housing units||Average annual premium|
|Source: U.S. Census American Community Survey (2019). The ACS margin of error is +/-0.2% or less for all figures.|
The cost of renters insurance in the states with the most renters tends to be higher than the national average.
How COVID-19 changed average rent prices
The COVID-19 pandemic has had a significant impact on the cost of rent. Our team here at QuoteWizard analyzed rental rates across the country and found that the average cost for a one-bedroom apartment has gone up 16% nationwide since January 2021. Florida has experienced the highest increase in rent, while North Dakota has had the smallest change in rental prices.
|State||Current average rent||% change since 2021||% change since 2019|
|Methodology: Rent data sourced from Apartment List. **Montana, Vermont and West Virginia data not available.|
America’s most populous cities have also seen an abrupt change in rental prices during the pandemic. We found that the average price of rent has increased by 14% in the United States’ 50 largest cities. Mesa, Ariz., and Las Vegas had the highest increases in rent, while rental prices decreased 16% in San Francisco.
|Metro||Average rent||% change since Jan. 2021||% change since 2019|
|Colorado Springs, CO||$1,145||17%||24%|
|El Paso, TX||$891||15%||22%|
|Fort Worth, TX||$1,095||13%||13%|
|Kansas City, MO||$984||10%||9%|
|Las Vegas, NV||$1,185||27%||35%|
|Long Beach, CA||$1,527||12%||10%|
|Los Angeles, CA||$1,713||15%||4%|
|New Orleans, LA||$988||7%||3%|
|New York City, NY||$2,005||34%||4%|
|Oklahoma City, OK||$936||15%||19%|
|San Antonio, TX||$1,030||15%||14%|
|San Diego, CA||$1,849||18%||19%|
|San Francisco, CA||$2,341||17%||-16%|
|San Jose, CA||$1,919||12%||-5%|
|Virginia Beach, VA||$1,437||18%||28%|
|Methodology: Rent cost data was sourced from Apartment List estimates.|
Rent isn’t just rising though; we found that renters are also spending more and more of their total income on housing costs. The United States Department of Housing and Urban Development (HUD) considers anyone who spends more than 30% of their income on housing costs to be “cost burdened.” That’s because spending 30% or more on rent may make it difficult for someone to afford other basic necessities.
We found that 47% of people nationwide are now cost burdened. Florida, Hawaii and Vermont have the highest percentages of cost-burdened renters. Nebraska, North Dakota and South Dakota have the lowest.
|State||People paying 30% or more|
|Methodology: Data is sourced from the United States Census Bureau.|
What determines the cost of renters insurance?
Insurance companies use many factors to determine how much to charge customers, including your location and policy details. Some of the most common factors are:
- Your insurance claims history and credit score. A renters insurance claim can stay on a CLUE report for up to seven years. A CLUE report provides your claims history or history of property loss. Insurance companies may also look at your credit score and take it into account when determining your rate.
- Your local environmental risks and crime statistics. If you live in an area that is vulnerable to natural disasters and crimes, you'll likely pay a higher renters insurance premium.
- Your deductible and coverage level. If you have a lower deductible, your rates will be higher. Your rates will also go up if you add more coverage.
These are important factors, but there are many more. For more information, see our article on renters insurance policy rate factors.
How to save on renters insurance
There are a few ways to lower your renters insurance premium:
- Shop around. The rates that are offered by renters insurance companies may vary drastically. Insurance companies may also offer discounts and lower rates to attract new customers.
- Bundle your renters and auto policies. Insurance companies often offer discounts if you bundle your renters and auto insurance policies. With State Farm, for example, you can save up to $722 on insurance if you get renters and auto insurance from them.
- Increase your deductible. The higher the deductible, the lower your annual premium will be. When filing a claim, you must pay the deductible. You should choose a low deductible if you think there's a good chance you will file a large claim within a year.
Compare rates from top renters insurance companies today
What does renters insurance cover?
Renters insurance policies typically consist of four primary coverages: personal property, personal liability, medical payments to others and loss of use.
Personal property: This coverage protects your stuff. That includes everything from your laptop to your mattress and clothes. So if your couch is damaged in a fire, renters insurance can step in to help cover the cost of a new couch. Keep in mind that there are coverage limits for certain high-value items, such as jewelry.
Personal liability: If you find yourself in court after accidentally injuring someone or damaging their property, personal liability coverage can help cover the legal and medical costs. Some policies start at $50,000 of coverage, but $100,000 is more typical.
Medical payments to others: This coverage can help pay for medical bills if a guest is injured in your home, such as if someone slips on your stairs. Limits for this coverage typically range from $1,000 to $5,000.
Loss of use: Also called additional living expenses, loss of use coverage helps pay for increased living expenses if you are unable to remain in your home if it is damaged and being repaired, for instance.
How does renters insurance protect me?
Insurance companies call an event or circumstance that can cause personal injury or property damage a peril. Insurance companies don't cover all perils — there are usually some exclusions, meaning insurance doesn't kick in for all sources of damage. Here are some of the most commonly included and excluded renters insurance perils.
|Typical inclusions||Typical exclusions|
|Fire and smoke damage||Flood|
|Lightning, windstorm and hail||Earthquake|
|Theft and vandalism||Pest damage|
|Some types of water damage||Sinkholes|
This list is far from exhaustive. Check out our article on what renters insurance covers for more information.
Do you need renters insurance?
Renters insurance is not required by law, but landlords can require tenants to purchase renters insurance as a condition of the lease. Even if your landlord doesn't make you buy renters insurance, we strongly recommend it because renters insurance provides great value and is worth purchasing for most tenants.
Frequently asked questions
Q: How much is renters insurance?
A: Our national study found that the average cost of renters insurance is $219. The amount of coverage you choose, your claims history and your location are all factors that may affect how much you pay for renters insurance.
Q: How much renters insurance do I need?
A:.The worth of your belongings determine how much renters insurance you need. Typically, you'll need enough personal property coverage to cover the cost of replacing your belongings. To figure out how much coverage you need, we recommend starting with an inventory of your belongings.
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