Updated Jan 12, 2023
Updated Jan 12, 2023
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.
If you’re among the one-third of all U.S. households whose primary residence is a rental property, it’s important to ensure that both you and your personal belongings are protected from the unexpected. Renters insurance is a form of affordable property insurance designed to do just that. Still, the cost of a renter’s policy can vary widely based on various factors, including your location, coverage specification, and the insurer you enroll with.
Looking for renters insurance coverage? Contact any of the providers below to get started:
The average cost of renters insurance in the United States is approximately $15 per month or $174 per year. According to the Insurance Information Institute (Triple-I), this nationwide average is based on a basic policy with $100,000 in personal property and liability coverage and a $500 deductible.
Aside from how much coverage you purchase, the cost of your renter’s insurance policy is contingent on a mix of factors specific to you, such as geographic location.
|State||Average Annual Premium||Average Monthly Premium|
|District of Columbia||$158||$13|
Based on our research, the five most expensive states for renters insurance are:
All the states with the most expensive average premiums happen to be located in the South. Tenants renting in these states are likely paying more for coverage, especially in cities closer to the coast, because they’re at a higher risk for hurricane damage.
On the other hand, the five cheapest states for renters insurance are:
The states with the lowest average premium are all tucked in the Midwest, where renters insurance is statistically cheaper due to its dispersed population, moderate crime rates, and less-competitive housing market.
Renters in certain states may pay more for insurance than others depending on their susceptibility to certain natural disasters (at least those considered covered losses by renters insurance policies.) Higher renter’s insurance costs could also correlate to local crime rates in the tenant’s specified ZIP code.
Your renter’s insurance company will look into your claims history when shaping your premium. They’ll specifically consider if you’ve been covered by renter’s insurance in the past and may base your premiums on your likelihood of filing claims. Any tenant with a substantial history of previous claims with another provider will likely be quoted a higher premium to cushion against the possibility of extensive future claim submissions.
Both the level and type of coverage you buy will naturally affect your total amount due per month or year. Your renter’s insurance coverage may be offered in two different forms:
The deductible for your renter’s insurance policy works in the same way that it would for any other form of insurance. It’s an out-of-pocket payment that you’ll be required to make before your insurance company steps in to help. Most carriers offer more than one deductible for you to choose from at sign-up. Selecting a higher deductible will lower your monthly or annual premium. Conversely, the lower your deductible, the higher your premium will be.
Renter’s insurance rates will vary from carrier to carrier as not all insurance companies use the same formulas to calculate risk. Some will weigh certain factors over others when building your personal quote.
Here’s how average premiums compare across several of the top-rated renter’s insurance providers reviewed on our site:
|Company||Average Monthly Premium||Average Annual Premium|
Contact any of the providers below to start your renters insurance coverage today.
Basic renters insurance is split into three primary coverage categories: personal property, personal liability protection, and additional living expenses/loss of use.
Some insurance companies may lower your premium if you or your landlord has taken extra safety and security precautions around the covered property by installing home security systems, smoke and fire alarms, automatic sprinklers, window/door alarms, etc. Essentially, doing so somewhat softens the risk your carrier is exposed to for covered perils like fire, theft, and vandalism; therefore, that reduced risk is reflected in your premium.
Higher credit scores correlate with lower premiums. Regardless of your provider, insurers will assume a higher risk with tenants with a lower credit score, as individuals with lower credit scores are statistically more likely to file a claim due to unpaid debt and overall poorer creditworthiness.
Opting to fulfill your monthly or annual payments through autopay may result in a slight discount from your insurance company. By signing up for auto-pay, you eliminate your risk of late or missed payments and therefore mitigate any need for your carrier to fill in financially in the interim. Paying on time also means your credit score won’t be inadvertently affected, allowing you to maintain a lower premium by virtue of a higher credit score.
Bundling incentives are plentiful across the insurance industry. Most renters insurance carriers offer opportunities for a policyholder to bundle their policy with other insurance products like life, pet, homeowners, and auto insurance, so long as they’re all administered by the same provider. Not only can you save money by bundling policies, but it can also make managing your insurance information easier with everything consolidated in one place.
Renter’s insurance can be easily purchased through any provider’s primary website or by calling a carrier’s toll-free number to speak with a live insurance agent. Some providers may allow you to enroll via email or mail if that’s your preference, though we recommend signing up online for the fastest experience.
Finding the cheapest renters insurance will never boil down to one provider. Though some insurers have more affordable base rates than others, the lowest-costing renter’s policy will depend on the personal specifications of your plan. To find the cheapest coverage based on your needs, we recommend comparing at least three renters insurance quotes with any reputable carriers that pique your interest. Consider some of the low-cost options highlighted in our cheapest renters insurance round-up.
Inclusions and exclusions will vary from carrier to carrier. Still, most renters insurance policies will not cover costs related to:
The simplest way to file a claim through your renter’s insurance provider is through your designated online customer portal. As you file your claim, you’ll likely be asked to provide supporting documentation, including photographs, tax receipts, proof of purchase, etc.
Other Renters Insurance Resources
Get the best of House Method in your inbox