Average Cost of Renters Insurance

How Much Is Renters Insurance per Year?

Renters insurance costs in the US currently average about $215 per year, or nearly $18 per month. These cost averages are based on a renters insurance policy with $100,000 in liability coverage, $30,000 in personal property coverage, and a $500 deductible.  Rates for your coverage may vary depending on a couple of different factors, however.

So how much is renters insurance where you live? It depends on things like property values, crime rates, the risk of storms, etc. How much coverage you need also plays a factor in your policy's premiums. Read on for more about the average cost of renters insurance in the US in 2023. An independent insurance agent can also help you find all the coverage you need.

Renters Insurance Cost by State

The average cost of renters insurance per month and year are broken down in the table below. Look at your state to get an idea of what you can expect to be the average cost of renters insurance per month where you live.

Most Expensive States for Renters Insurance

States considered high risk for various natural disasters, including hurricanes and tornadoes, tend to have more expensive renters insurance rates. But renters insurance costs may also be higher in your area because of other factors, including crime rates and property values. Here's a look at the most expensive states for renters insurance:

Severe weather risks are much higher in these states than in others. Because of this, insurance companies consider renters in these areas to be much more likely to file a claim through their renters insurance.

Least Expensive States for Renters Insurance

States that are located further inland tend to be less prone to severe weather. They can also have lower property values and even lower crime rates. All of these factors together can create lower average renters insurance premiums. Here are the least expensive states for renters insurance:

Renters in these states have been determined by insurance companies to be much less likely to need to file a claim through their renters insurance, resulting in lower premiums.

Average Cost of Renters Insurance by City

Living in a major city or metropolitan area in your state may result in even higher renters insurance premiums. Crime rates, property values, and more may be higher in major cities and metropolitans, resulting in higher renters insurance premiums than in small towns in your state. Check out some of the nation's major cities and their average costs for renters insurance:

What Is Renters Insurance?

A renters insurance policy is similar to a homeowners insurance policy, except without all the structural coverage. You don't need this coverage in renters insurance because you don't actually own the property. But it's still critical to have a policy to protect your personal belongings and liability. 

What’s Included in Renters Insurance Policy Rates?

The types of coverage you need, and how much of each, influence your overall renters insurance policy rates. The more coverage you need, the more you're likely to pay for your premiums. Here are the major types of coverage included in standard renters insurance policies:

• Personal property: Covers your personal property like furniture, clothes, electronics, etc. for many disasters such as fire. The more valuable your property, the more coverage you'll need. You may even need to add endorsements to your policy if you have a lot of valuables.
• Liability: Covers costs related to lawsuits if a third party sues you for personal property damage or bodily injury. Costs of an attorney, court fees, and settlement fees are included.
• Loss of use: Covers costs of staying at a temporary residence like a hotel if your rented home becomes uninhabitable after a major disaster. Costs related to maintaining your typical lifestyle while you're displaced from your home, including takeout meals, extra gas mileage, etc., are covered.
• Medical payments: Covers the costs of medical treatment for third parties who get injured on your property. This coverage is effective even if a lawsuit is not filed against you for the incident.

An independent insurance agent can help you find the right renters insurance policy for you, with all the coverages you need most.

Vacation Homes, Airbnbs, & Short-Term Rentals

This can be requested in all sorts of rental transactions, such as when you are renting an apartment, townhome, or single-family residence. But it may also be required when you are renting a vacation home, Airbnb, and the like. Typically, renters insurance isn't required when you are renting, say, a condo on the beach for a week, because most insurance companies won't write a short-term renters policy like that. 

However, the primary homeowners or renters insurance that you have on your place back home may have coverage that extends to you while you're on vacation. In fact, most policies will have liability that extends to you while you travel, as well as a percentage of personal property coverage off-premises. The big kicker is that your coverage won't usually follow you if you're traveling out of the country. It's best to discuss this with your independent insurance agent so you know how you are covered while renting a short-term vacation home.

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How to Know if You Need Renters Insurance

Simple, if you're renting a home, you need renters insurance. If you're renting a single-family residence, an apartment, a condo, a mobile home, a tiny home, etc., you'll need renters insurance. In fact, the majority of landlords require this in order to offer a lease. 

If you don't have renters insurance and a storm comes through your area and demolishes all your personal property, you'll be wishing you did. If your landlord requires a renters policy from you prior to signing the lease agreement, it's time to get in touch with your independent insurance agent.

Several Factors Affect How Much Renters Insurance Costs Per Month

Insurance companies’ rates and policies can differ significantly. When calculating your renters insurance price, insurance companies take several factors into account. These include:

• How much coverage you need
• The type of coverage you choose
• The deductible amount
• The location of your rented home or apartment

These factors affect your insurance rates, but you won’t know exactly how much each insurance company's cost varies until you collect quotes. An independent insurance agent can simplify this process for you, though, by providing several different quotes together in one place.

Renters Insurance Coverage Statistics

As you begin thinking about your renters policy and how much you’ll be spending on coverage, it might be helpful to consider some statistics.

• In 2023, the average cost of a renters insurance policy in the US is $215 per year
• Renters insurance costs are highest in Mississippi, Louisiana, and Oklahoma
• The cost of renters insurance is lowest in North Dakota, South Dakota, and North Carolina

Regardless of where you live, your renters insurance policy and cost will be unique. An insurance company factors in your assets, risk factors, location, claims history, and more when calculating a quote.

How Much Renters Insurance Do You Need?

When you get a quote for a renters insurance policy, you will have to decide how much personal property coverage and liability coverage you need. You will also have to consider whether you want to purchase additional endorsements to cover specific items, such as high value jewelry or collections.

Additional coverage will affect the cost of your policy, but renters insurance costs are still typically very reasonable even with full coverage.

There are several steps involved in deciding how much renters insurance you need.

1. Decide how much coverage you need for your personal property. To determine this, assess your belongings, including furniture, electronics, clothing, artwork, kitchenware and collectibles. Note that if you experience a loss, your reimbursement costs cannot exceed the coverage amount you choose, so be sure to think this through. If you were to lose everything, would your coverage be enough to allow you to get back on your feet and start over?
2. Choose the amount of liability coverage you want. Your liability insurance will provide coverage for medical bills if someone is injured on your property, as well as legal expenses if needed. Because the cost of a lawsuit and legal fees can exceed $1 million, many insurance professionals recommend purchasing more than the standard coverage. If your liability coverage limit is $100,000, you could end up paying the costs of damage and legal fees out of pocket. Even raising the limit to $300,000 can provide peace of mind. While raising your liability limit will increase your premium, it’s probably more affordable than you think.

Most insurance companies impose caps on how much coverage they provide for various categories of personal belongings. 

If you have an extensive amount of electronic equipment, designer clothing, or expensive collectibles, you might want to get additional endorsements, or riders, to obtain full coverage for these things. An independent insurance agent can advise if this is the right choice for you.

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Actual Value vs. Replacement Cost Coverage

Insurance companies typically offer the choice of actual value coverage or replacement cost coverage for your belongings. Actual value coverage covers the current value of your belongings (factoring in depreciation), while replacement cost coverage provides you with enough to purchase a new replacement.

While replacement cost coverage does cost a bit more, it's invaluable in case of a burglary, fire, or other major incidents that claim a lot of your property that you must then replace. As you’re looking at renters insurance rates and quotes, keep these two types of coverage in mind.

Choosing the Right Deductible for Your Renters Insurance

Your deductible is the amount you have to pay out of pocket before your insurance coverage kicks in after filing a claim. Having a very high deductible can significantly lower your insurance premium. Lower deductible amounts result in more coverage but at a higher rate. Your deductible might be $500, $2,000, or somewhere in between.

If you opt for a deductible of $1,000 and your camera and iPad get stolen in a burglary, it might not be worthwhile to file a claim. However, if you have a lower deductible of $500, filing a claim might make sense because you stand to gain more reimbursement from your coverage. As a renter, finding the right balance in deductible amounts vs. premium rates is key.

Having a lower-cost policy with a higher deductible might make the most sense for you. But for some folks, paying a higher premium offers peace of mind because the deductible amount will be much less cost out of pocket should a disaster occur.

Questions Your Independent Insurance Agent Should Ask You

When you obtain renters insurance, or any insurance for that matter, your independent insurance agent should ask you a few questions to make sure you're covered properly and all of your assets and belongings are accounted for. If they're not asking about this, you may want to look for a more detail-oriented independent insurance agent. 

Questions Your Independent Insurance Agent Should Ask about Your Renters Insurance:

1. What address will you be renting?
2. Is this coverage for a long-term rental or a short-term rental?
3. What dollar amount do you want listed to replace your personal belongings?
4. What dollar amount will you need in coverage for personal belongings while traveling?
5. How old is the property you will be renting?
6. What limit of personal liability do you want?
7. Do you want to bundle your renters and auto insurance for added savings?
8. Does your landlord have adequate coverage on the property? 
9. Is there anything that your landlord is not covering with insurance that you would need coverage for?
   

A knowledgeable independent insurance agent will be prepared with an appropriate set of questions designed to help you find the right type and amount of renters insurance.

How to Lower Your Average Monthly Cost of Renters Insurance

Fortunately for renters, there are several ways you can lower your average costs of coverage. Many insurance companies offer a handful of discounts on coverage. Your independent insurance agent can help you find out if you qualify for them. Here are a few of the most common ways to save money on renters insurance and lower your average monthly coverage costs:

Bundle your policies

Many insurance companies offer bundling discounts if you buy more than one type of coverage through them. So if you pair your renters insurance and car insurance through the same company, you might save a good bit of money on the premiums for each coverage.

Stay claim-free

Many insurance companies also offer claims-free discounts if you've gone without filing a claim for a set amount of time. This time frame varies by insurance company but often comes in increments of a set number of years, such as two years.

Utilize safety and security devices

Improving the safety and security of your rented home can help decrease your risk of needing to file a claim and therefore lower your premium costs. A renters insurance company may discount your renters insurance premium if you install burglar alarms, motion sensor lights, etc., on your property.

Improve your credit score

Insurance companies tend to correlate good credit scores with lower insurance rates. If you improve your credit score, you may be able to score a discount on your renters insurance coverage, too.

Certificates of Insurance as They Pertain to Renters Insurance

You may receive a request form from your landlord if they require it to get proof of renters insurance. This proof of insurance is called a certificate of insurance. It will give an insurance preview of what coverage you have, your policy term effective dates, and the carriers that write your policies. Your insurance company should provide you with this form, or you can ask your independent insurance agent to get it for you.

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Frequently Asked Questions about Renters Insurance Costs

Here are some of the most commonly asked questions about renters insurance costs:

Find even more answers related to frequently asked questions about renters insurance.

Understanding the Average Cost of Renters Insurance

Determining your cost for renters insurance on your own can be tricky. Many insurance websites require you to enter a ton of personal data to get a quote, and it can be difficult to see how altering various options can affect your rate. Some sites won't actually provide you with a rate online and instead will have a sales representative call you.

The easiest way to learn how much or how little renters insurance will cost you is to speak with an independent insurance agent. An independent insurance agent can help you assess your coverage needs and can compare renters insurance costs from several different insurance companies to find a policy priced at a competitive rate.

Find a local independent insurance agent today to get more information and obligation-free quotes for renters insurance.