How Much Is The Average Cost Of Renters Insurance?

While we used to think of buying a home as part of the American Dream, more and more millennials are turning rental units into their long-term homes.

And because of this, finding the best renters insurance company is becoming an integral part of insuring everyone’s livelihoods and, ultimately, their well-being. 

In this article today I will dissect the cost of renters insurance policies across the U.S, as well as factors to keep in mind as you consider a renters insurance policy. 

How Much Is The Average Cost Of Renters Insurance?

The average cost of renters insurance is $15.58 per month or $187 per year. The cost of renters insurance is based on the policy coverage limits, deductible amount, the company you choose, and location.

What Is The Average Cost Of Renters Insurance By State? 

Below we cover the average cost of renters insurance by state.  

STATE

AVERAGE ANNUAL PREMIUM

STATE

AVERAGE ANNUAL PREMIUM

Alabama

$203

Montana

$155

Alaska

$91

Nebraska

$165

Arizona

$180

Nevada

$129

Arkansas

$212

New Hampshire

$139

California

$192

New Jersey

$195

Colorado

$128

New Mexico

$187

Connecticut

$228

New York

$150

Delaware

$160

North Carolina

$200

District Of Columbia

$156

North Dakota

$185

Florida

$129

Ohio

$237

Georgia

$219

Oklahoma

$253

Hawaii

$174

Oregon

$114

Idaho

$193

Pennsylvania

$165

Illinois

$187

Rhode Island

$124

Indiana

$174

South Carolina

$230

Iowa

$103

South Dakota

$116

Kansas

$213

Tennessee

$260

Kentucky

$125

Texas

$134

Louisiana

$240

Utah

$151

Maine

$156

Vermont

$155

Maryland

$191

Virginia

$148

Massachusetts

$138

Washington

$162

Michigan

$155

West Virginia

$187

Minnesota

$175

Wisconsin

$119

Mississippi

$314

Wyoming

$107

Missouri

$264

 

 

What Determines the Cost of Renters Insurance?

The state that you live in will strongly determine the cost of renters insurance.

But there are other factors like your neighborhood and your dwelling that may also influence the price of renters insurance premiums.

Certain factors can cause your premium to increase:

Residing in a disaster-prone areaRenting in a smaller apartment building with fewer unitsLack of camera security or security guards on-siteLack of smoke detectorsHaving a low credit scoreOwning dogs

Overall it’s better to live in a denser apartment building with more units to receive lower coverage. 

But you can also take steps to lower the cost of your premium. These steps include:

Bundling your renter’s insurance with your auto insuranceImproving your credit scoreMoving to a neighborhood with a lower average premium

In addition to the premium, you also should keep in mind the cost of the deductible. Some renters insurance plans allow you to pay a lower premium to maintain your insurance. 

In return, you’ll have to pay a higher deductible, which is the out-of-pocket cost amount that you owe before your insurance policy pays for a claim. 

You’ll have to weigh the risk in the tradeoff between lowering your premiums and paying a higher deductible if you suffer from property damage or personal liability. 

According to State Farm, if a fire causes $1500 worth of damage and your deductible is $500, your insurance company will pay the difference: $1000.

Below is a quick list of what renters insurance covers.

Type of Coverage

Renters insurance includes two different types of coverage, property coverage and liability coverage.  Most renters insurance policies also include loss of use provisions.  

These provisions pay for your hotel and meal expenses if you are temporarily unable to live in your apartment due to an insured loss, such as a fire.

Loss of use is also commonly known as Additional Living Expenses (ALE). These are the standard provisions that most insurers will include in their coverage. But what else can affect the price of renters insurance?

Coverage Limits

As with any other insurance policy, renters insurance limits how much the company will cover for a claim. This limit depends on the type of plan that you choose. 

The higher the limit, the more that will be covered—and the less that you’ll have to pay. State Farm reports that the average policy covers up to $100,000 in damages. 

Therefore, a policy with a liability limit of $100,000 would probably be a good starting place. So, you may be asking, “How much is renters insurance for $100,000?”  As we’ve discussed, the premium can vary widely depending on the value of your possessions, your neighborhood, and other factors about your background. 

Policy Deductible

According to Liberty Mutual’s coverage calculator, the deductible — the amount you owe before the insurance company pays for damages—for a $100,000 plan is relatively easy to calculate. 

The deductible for a person between the ages of 23 and 30 living in a low-risk area with an income under $100,000 is $500.   Sometimes, adjusting to a higher deductible can save money on your renters insurance premium. 

A higher deductible may be worth it if you have expensive electronic equipment or jewelry that would make such a claim worthwhile, despite the high deductible.

Extra Coverage

Finally, you may opt to purchase extra coverage—also known as a rider—for high-end personal items, like jewelry.  Riders will certainly increase the price of your renter’s insurance. 

How to Buy Renters Insurance Online

Figure Out How Much You Need

The first thing you need to do is figure out how much coverage you need. This should be fairly simple for you to do since you have read this article.  Essentially, figure out what you need to protect and get enough coverage to protect it.

Get Quotes

Once you know how much coverage you need it’s time to do some comparison shopping and to get some quotes.  Your goal is to get instant quotes that don’t require personal information. Once you have a few quotes it’s time to read some reviews.

Read Online Reviews

At this point you should have one or two insurance companies that you want to go with for coverage. Your next goal will be to find a few online reviews about each company to learn more about them and how their product works. You should do this step 100% of the time because some products have added bonuses that you might not be aware of.

Apply Online

Once you find the price you like and the company you want to do business with, it’s time to apply online. This process is usually super simple and you can have your coverage start immediately. 

Taking Action

Nearly 34% of Americans rented their homes as of 2024, which is the highest proportion since 1965. Although the rental rate seems to be on the decline, renters are still changing the fabric of the U.S. 

If you need renters insurance, we’ve done the hard work for you—check out the top three companies or get your free renters insurance quote today.