The Average Renters Insurance Cost

Insurance is one of those things that you hope you never have to use but are glad to have in case something unexpected happens. Renters insurance is no different – it’s there to help protect your belongings and give you peace of mind in case something goes wrong. But what does it actually cost?

The average cost of renters insurance varies depending on a number of factors but is typically between $15 and $30 per month. This means that over the course of a year, you can expect to pay between $180 and $360 for coverage.

Of course, the actual cost of your renter’s insurance will also depend on the amount of coverage you need. If you have a lot of expensive items, you may need to purchase more coverage than someone with fewer possessions. You should also consider the value of your belongings when deciding how much coverage to buy.

Ultimately, the best way to determine how much renters insurance you need is to speak with an insurance agent. They can help you assess your needs and find a policy that fits your budget.

So, there you have it – the average cost of renters insurance. While it’s not the most exciting topic, it’s important to understand what you’re paying for and how much coverage you need. With a little research, you can find the perfect policy for your needs and budget.

StateAverage annual costAverage monthly cost
National average$168$14
Alabama$222$18
Alaska$123$10
Arizona$179$15
Arkansas$214$18
California$217$18
Colorado$156$13
Connecticut$172$14
Delaware$150$13
Florida$191$16
Georgia$243$20
Hawaii$164$14
Idaho$133$11
Illinois$167$14
Indiana$155$13
Iowa$110$9
Kansas$225$19
Kentucky$170$14
Louisiana$262$22
Maine$150$13
Maryland$175$15
Massachusetts$192$16
Michigan$201$17
Minnesota$153$13
Mississippi$228$19
Missouri$134$11
Montana$162$14
Nebraska$122$10
Nevada$162$13
New Hampshire$135$11
New Jersey$163$14
New Mexico$148$12
New York$142$12
North Carolina$148$12
North Dakota$116$10
Ohio$135$11
Oklahoma$210$17
Oregon$149$12
Pennsylvania$116$10
Rhode Island$166$14
South Carolina$188$16
South Dakota$123$10
Tennessee$155$13
Texas$197$16
Utah$138$11
Vermont$110$9
Virginia$149$12
Washington$140$12
Washington, D.C.$166$14
West Virginia$142$12
Wisconsin$122$10
Wyoming$101$8

These are the five most expensive states for renters insurance:

  • Louisiana: $262 per year, or $22 per month, on average.
  • Georgia: $243 per year, or $20 per month, on average.
  • Mississippi: $228 per year, or $19 per month, on average.
  • Kansas: $225 per year, or $19 per month, on average.
  • Alabama: $222 per year, or $19 per month, on average.

Meanwhile, these are the five cheapest states for renters insurance:

  • Wyoming: $101 per year, or $8 per month, on average.
  • Iowa and Vermont (tie): $110 per year, or $9 per month, on average.
  • North Dakota and Pennsylvania (tie): $116 per year, or $10 per month, on average.

How much is renters insurance in your city?

The average price of renters insurance in your location can be found below if you reside in one of the 25 largest metropolitan areas in the US. Atlanta has the highest average annual cost ($269, or about $22 per month), while Columbus has the lowest average annual cost ($137, or about $11 per month).

CityAverage annual costAverage monthly cost
Atlanta$269$22
Austin$172$14
Charlotte$143$12
Chicago$215$18
Columbus$137$11
Dallas$206$17
Denver$171$14
El Paso$179$15
Fort Worth$225$19
Houston$262$22
Indianapolis$177$15
Jacksonville$161$13
Las Vegas$174$15
Los Angeles$256$21
Louisville$176$15
Memphis$187$16
New York City$174$15
Oklahoma City$219$18
Philadelphia$179$15
Phoenix$193$16
San Antonio$216$18
San Diego$197$16
San Francisco$236$20
San Jose$211$18
Seattle$144$12

What’s included in renters insurance rates?

Most renters insurance policies include four basic types of coverage:

Personal property. This portion of your insurance would cover the cost of replacing your possessions if they were stolen, wind-damaged, or burned to the ground. Usually, a deductible applies, and your policy only covers certain situations that are specified in it.

Liability. The legal fees and losses associated with situations like a visitor getting hurt in your home or your dog biting a stranger are covered by this section of your insurance. (Take note that some insurers do not cover all dog breeds.)

Medical payments. This insurance, which is frequently bundled with liability, will cover guest injuries sustained while on your property without a need for legal action.

Loss of use. After a covered calamity, this insurance pays out if you need to move while your house is being repaired. For instance, it would pay for additional accommodation or dining costs while you’re waiting to move back into your house..

What determines your renters insurance cost?

These are the most frequent elements that could affect your premium, while each insurance provider calculates renters insurance premiums slightly differently.

Where you live

You’ll probably pay extra for renters insurance if your residence is located in an area vulnerable to calamities like hurricanes, wildfires, or tornadoes. Additionally, if there aren’t any nearby fire hydrants or fire stations, your premiums may go up in a high-crime area.

Your previous claims

Your current insurer will probably view you as a higher risk if you have made claims within the last three to five years, even with a different firm. According to a NerdWallet analysis, having a claim on your record can increase your rate by more than 20%.

Claims historyAverage annual costAverage monthly cost
No recent claims$168$14
A recent water damage claim$196$16
Recent theft claim$204$17

Your credit history

While renters insurance providers don’t look at your FICO credit score, they do in most states look at your credit-based insurance score, which is a comparable metric. According to studies, those with bad credit are more likely to submit claims, thus insurers often charge them more. According to a NerdWallet analysis, tenants with bad credit often pay more than twice as much as those with strong credit.

Credit historyAverage annual costAverage monthly cost
Good credit$168$14
Poor credit$363$30

In California, Maryland, and Massachusetts, it is prohibited to utilize credit to determine the cost of homeowner’s, renter’s, condo, and mobile home insurance.

Your dog

Because renters insurance typically includes liability coverage for dog bites, owning larger dogs or breeds considered more aggressive may cost you more. Some insurers may not cover certain breeds at all.

Your coverage limits

Your policy will cost more the more coverage you require. A family renting a three-bedroom home, for instance, will almost always pay more to insure their belongings than a single person residing in a studio apartment across town. See an example of how your renters premium can fluctuate depending on how much personal property insurance you require below.

Personal property coverage limitAverage annual costAverage monthly cost
$10,000$124$10
$30,000$168$14
$50,000$224$19

Your deductible

By selecting a higher deductible—the sum you must pay out-of-pocket before your insurance company begins to pay claims—you can reduce your premium. However, if you’d have difficulties paying the higher deductible in an emergency, the difference in premium might not be worthwhile.

DeductibleAverage annual costAverage monthly cost
$500$168$14
$1,000$154$13

How to lower your renters insurance cost

Although there are other ways to reduce the cost of your renters insurance, these are the most popular reductions.

Multipolicy. You can be eligible for a discount on one or both plans if you purchase renters insurance along with another policy (like vehicle insurance) from the same provider.

Claim-free. Discounts are frequently available to tenants without previous claims. Depending on the company, “recent” claims usually refer to the last three to five years.

gadgets for safety and security. If your home has sprinkler systems, smoke detectors, burglar alarms, or other equipment that reduce the risk of fire or burglary, many insurers will reduce your rate.

Find the cheapest renters insurance in your state

Don’t see your state below? Check back soon — we’re adding more renters insurance stories all the time.

CaliforniaFlorida
GeorgiaNew York
North CarolinaPennsylvania
Texas

METHODOLOGY

NerdWallet averaged rates for 30-year-old men and women for multiple insurance companies in every ZIP code across all 50 states and Washington, D.C. We also averaged rates by city. Sample tenants were nonsmokers with good credit living in a two-bedroom apartment. They had a $500 deductible and the following coverage limits:

  • $30,000 in personal property coverage.
  • $100,000 in liability coverage.
  • $10,000 in additional living expenses coverage.
  • $1,000 in medical payments coverage.

We used the same assumptions for all other renter profiles, with the following exceptions:

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for renters with poor credit. In states where credit isn’t taken into account, we used only rates for “good” credit.
  • For renters with a higher deductible, we raised the deductible from $500 to $1,000.
  • For renters with higher or lower personal property coverage limits, we raised the limit to $50,000 or lowered it to $10,000.
  • For renters with a history of claims, we added a single theft or water damage claim to their record.

Our “good” and “poor” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Leave a Reply

Your email address will not be published.