Home > Renters Insurance > How Much is Renters Insurance? Cost Guide 2022

How Much is Renters Insurance? Cost Guide 2022

Updated Nov 3, 2022

Updated Nov 3, 2022

Home > Renters Insurance > How Much is Renters Insurance? Cost Guide 2022

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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:

What is the Average Cost of Renters Insurance?

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.

Average Cost of Renters Insurance by State

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.

StateAverage Annual PremiumAverage Monthly Premium
Alabama$219$18
Alaska$182$15
Arizona$164$14
Arkansas$208$17
California$175$15
Colorado$159$13
Connecticut$183$15
Delaware$153$13
District of Columbia$158$13
Florida$180$15
Georgia$209$17
Hawaii$174$15
Idaho$148$12
Illinois$157$13
Indiana$164$14
Iowa$132$11
Kansas$167$14
Kentucky$162$14
Louisiana$236$20
Maine$149$12
Maryland$157$13
Massachusetts$186$16
Michigan$182$15
Minnesota$135$11
Mississippi$252$21
Missouri$173$14
 Montana$149$12
Nebraska$144$12
Nevada$179$15
New Hampshire$146$12
New Jersey$156$13
New Mexico$186$16
New York$185$15
North Carolina$159$13
North Dakota$115$10
Ohio$163$14
Oklahoma$235$20
Oregon$158$13
Pennsylvania$153$13
Rhode Island$182$15
South Carolina$182$15
South Dakota$117$10
Tennessee$189$16
Texas$220$18
Utah$149$12
Vermont$151$13
Virginia$149$12
Washington$157$13
West Virginia$185$15
Wisconsin$127$11
Wyoming$147$12

Most Expensive and Cheapest States for Renters Insurance

Based on our research, the five most expensive states for renters insurance are:

  1. Mississippi: $252 per year or $21 per month
  2. Louisiana: $236 per year or $20 per month
  3. Oklahoma: $235 per year or $20 per month
  4. Texas: $220 per year or $18 per month
  5. Alabama: $219 per year or $18 per month

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:

  1. North Dakota: $115 per year or $10 per month
  2. South Dakota: $117 per year or $10 per month
  3. Wisconsin: $127 per year or $11 per month
  4. Iowa: $132 per year or $11 per month
  5. Minnesota: $135 per year or $11 per month

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.

What Factors Influence Renter’s Insurance Cost?

State & Location

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.

Credit & Claims History (Insurance Report)

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.

Coverage Needed

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:

  • Actual Cash Value (ACV): Describes payment for the original value of the lost or damaged covered item minus its depreciation since the initial date of purchase. ACV is the more affordable coverage option, but it can leave you paying more out of pocket should you ever need to file a claim.
  • Replacement Cost Value (RCV): Describes the amount of money needed to replace a lost or damaged covered item based on current retail prices. RCV is typically the more expensive coverage option but often guarantees a higher payout amount.

Deductible Cost

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.

Renters Insurance Cost by Company

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:

CompanyAverage Monthly PremiumAverage Annual Premium
Lemonade$12$144
Geico$14$168
State Farm$15$180
Allstate$16$192
Eerie$12$144

Contact any of the providers below to start your renters insurance coverage today.

What Does Renters Insurance Coverage Include?

Basic renters insurance is split into three primary coverage categories: personal property, personal liability protection, and additional living expenses/loss of use.

  • Personal property coverage includes furniture, clothing, TVs, and other household items, and will pay to replace them if they’re even stolen or damaged by a covered risk. Personal property coverage typically doesn’t extend to more expensive items such as jewelry, collectibles, antiques, etc. You’ll need to purchase an additional policy endorsement to secure protection for high-value items like these.
  • Liability protection offers coverage for potential legal fees or medical bills if a guest is injured on the rental property or if you accidentally cause damage to someone else’s property.
  • Additional living expense/loss of use coverage will help offset costs if the property you’re renting becomes uninhabitable due to a covered peril, like a house fire or excessive water damage. This coverage clause will step in to help with things like hotel fees until you can return to the rental property or relocate.

How to Save Money on Renters Insurance

Safety & Security Discounts

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.

Good Credit Score

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.

Autopay or Paying in Full

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.

Multi-Policy Discounts

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.

Frequently Asked Questions

How do I buy renters insurance?

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.

How can I find the cheapest renters insurance?

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.

Why did my renter's insurance premium increase?

A spike in your insurance premium could result from a few different factors. In the face of inflation and the current strain on supply chain demand, insurance prices are equally as susceptible to price hikes. Increased premiums may also be a reflection of the company itself. If your carrier has taken on additional risk, they may raise their rates to compensate for stronger financial stability.

What does renters insurance not cover?

Inclusions and exclusions will vary from carrier to carrier. Still, most renters insurance policies will not cover costs related to:

  • Property damage to the rental itself (this should be covered by the landlord’s insurance)
  • The property of another tenant on the property unless they are also listed on the policy
  • Damage or destruction caused by household pets
  • Earthquakes, sinkholes,  mudslides, or terrorism
  • Preventable pest infestations like bed bugs, mice, termites, roaches, etc.
  • Stolen personal vehicles
  • Irreplaceable valuables like engagement rings, collectibles, antiques, etc. (*without the purchase of additional coverage)

How do I file a renters insurance claim?

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.

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