Insight:

At only $27 a month, on average, the cost of renters insurance is more than worth the protection and peace of mind it provides. Find out why.

renters-insurance-cost

If you’re a tenant, you might be under the impression that should there be a break-in to your place, your place catches fire, or a natural disaster sweeps through that damages or destroys your place and wreaks general havoc, that your landlord’s got your back. Indeed, while your landlord might have insurance, it will only cover the cost to repair or rebuild the actual structure of your abode.

In terms of personal property (a fire destroys your valuables), liability (i.e., a dog pees on your neighbor’s rug, a delivery person slips and falls on your premises), and additional living expenses, that’s on you. The good news is renters insurance can help provide financial protection against those incidents.  Per a recent Insure.com cost analysis, the average cost of renters insurance in the U.S. is $326 a year, or $27 a month.

Key Takeaways

  • Renters insurance is typically not required by law but is usually recommended by landlords. Some landlords require it.
  • While your landlord might cover the cost to repair or rebuild the structure of your building, it doesn’t cover personal belongings, liability, or additional living expenses.
  • The cost of a renters insurance policy hinges on your renter profile, credit score and history, where you live and coverage amounts.
  • Renters insurance rates can vary depending on the state you live in and your ZIP code.
  • There are ways to lower your premium, including bumping up your deductible, lowering your coverage amounts, and looking for discounts offered by insurance companies.

Average cost of renters insurance

You might hesitate to hop on a renters insurance policy because of cost concerns. But here’s the thing: renters insurance is relatively low-cost.  The average cost of a renters insurance policy in the U.S. is $326 a year, or $27 a month. This is for a policy with $40,000 personal property liability and $100,000 liability protection, with a $1,000 deductible. Not too shabby.

As this is a national average, the cost of your policy depends on your ZIP code, your renter profile and the amount of coverage you’re getting. We’ll get into the nitty-gritty of how much renters insurance costs in your state next.

How much does renters insurance cost in your state?

While the national average for renters insurance is $326 a year, some states have a higher price tag, while others have a lower one. Typically, states prone to more extreme weather and prone to more expensive perils—think hurricanes and blizzards—have higher-cost renters insurance.

State $20,000/ $100,000 $40,000/ $100,000 $40,000/ $300,000 $60,000/ $300,000
Vermont$121$160$169$218
Wyoming$136$165$183$218
North Dakota$133$190$207$258
Alaska$142$195$218$266
Hawaii$148$198$220$281
Washington$158$206$223$281
South Dakota$144$214$231$305
Utah$245$330$244$296
New Hampshire$154$227$247$324
Iowa$224$322$249$321
Oregon$174$232$249$314
Wisconsin$176$252$268$349
Maryland$179$252$269$351
Montana$180$259$280$367
California$205$260$281$338
Pennsylvania$179$261$286$380
Colorado$203$272$292$358
North Carolina$157$288$297$419
DC$209$283$300$395
Idaho$214$287$307$404
Nebraska$214$293$307$399
Florida$192$295$313$410
Maine$191$299$316$429
Virginia$202$302$321$428
Indiana$221$306$324$415
Minnesota$349$312$324$421
New York$209$304$328$430
West Virginia$227$314$328$406
Illinois$230$313$330$417
Arizona$229$308$336$428
New Jersey$223$322$350$451
Tennessee$219$325$350$465
Nevada$242$338$355$449
Connecticut$222$334$359$486
New Mexico$243$338$359$458
South Carolina$245$359$381$495
Delaware$252$371$383$496
Missouri$263$369$386$484
Kentucky$274$367$388$473
Rhode Island$248$377$392$515
Texas$237$379$396$545
Kansas$262$391$404$543
Ohio$262$384$405$522
Arkansas$295$410$428$544
Massachusetts$255$425$443$613
Michigan$334$506$525$678
Georgia$330$511$536$706
Alabama$359$523$542$693
Oklahoma$361$543$561$632
Louisiana$388$571$600$672
Mississippi$374$579$600$800
National average$228$326$341$438

States with the highest renters insurance rates

Here are the states with the highest premium rates based on $40,000 personal property coverage and $100,000 liability coverage:

  • Mississippi – $579 
  • Louisiana – $571 
  • Oklahoma – $543
  • Alabama – $523 

States with the lowest renters insurance rates 

On the flip side, where can you find renters insurance with dirt-cheap premiums? Here are the states with some of the lowest renters insurance premiums in the nation. For $40,000 personal property coverage with $100,000 liability, you’re looking at:

  • Vermont – $160 
  • Wyoming – $165 
  • North Dakota – $190 
  • Alaska – $195

How much does renters insurance cost in top cities?

Your ZIP code can make a difference in how much you’re paying for renters insurance. Let’s take a look at the average annual cost of renters insurance in top cities across the U.S.:

  • New York: $430 
  • Los Angeles: $318 
  • Chicago: $341 
  • Boston: $634 
  • Orlando: $232

How much does renters insurance cost by deductible level?

One of the basic rules of the cost of insurance is the lower the deductible, the more pricey the premium. On the flip side, the higher the deductible, the lower your rates. While there are other factors that come into play that impact the price, you can lower your rates by bumping up your deductible.

However, before you hike your deductible to get a lower premium, be sure you can afford to pay that deductible out-of-pocket should you need to file a claim.

Renters insurance cost by company

Different insurance companies might have slightly different rates, despite your location and renter profile being the same. When comparing quotes, you’ll want to look carefully at the policy to see exactly what’s covered and what’s not.

While the standard coverage covers the three main areas: liability, personal property, and additional living expenses, what are the exclusions? Does one insurance carrier come on top in terms of the types of additional living expenses that are covered?

Some companies are known to be overall more expensive, while others are less pricey.

Company $40,000/ $100,000 Liability $40,000/$300,000
West Bend$98$101
Vermont Mutual$119$127
Concord$122$131
Pemco$143$156
Cincinnati Insurance$145$156
MMG$146$154
Nationwide$146$155
Tennessee Farmers$159$165
Umialik$161$177
Co Operative$162$173
Georgia Farm Bureau$166$172
New Jersey Manufacturers$168$187
Nodak$169$179
North Carolina Farm Bureau$169$175
Farmers Union$171$189
Depositors$177$180
State Farm$177$202
Travelers$177$190
Standard Fire$179$191
First Fire & Casualty$182$194
Interinsurance Exchange Of The Automobile Club$183$208
Acuity$185$198
Amica$190$196
Allstate$195$225
Allied$199$207
Universal$202$219
Castle Key$204$224
Patrons Oxford$207$218
Erie$208$220
Farmers$210$229
Farm Bureau Of ID$221$258
Citizens Property$224$224
Phoenix$224$238
First Floridian Auto & Home$228$248
American Family$231$248
Merrimack Fire$233$252
Narragansett Bay$235$273
Arbella$236$289
IMT$239$249
Farm Bureau Prop & Casualty$243$254
Automobile Of Hartford$248$264
American Family$251$263
USAA$254$286
Garrison$258$287
Shelter$260$275
CSAA Insurance Exchange$261$266
Kentucky Farm Bureau$263$269
Great Northern$272$288
Country$277$289
Chubb$279$290
Fidelity$284$314
Amco$285$293
Alfa$291$300
American Select$307$313
Safeco$312$332
Texas Farmers$317$320
Charter Oak Fire$317$327
ASI Lloyds$336$346
Citation$339$339
High Point Preferred$350$355
Mississippi Farm Bureau$350$359
Illinois Farmers$355$367
New York Central Fire$394$423
Commerce$397$417
United Farm Family$400$407
South Carolina Farm Bureau$400$407
Fire Insurance Exchange$402$415
Farm Bureau Gen of Michigan$433$444
United$454$462
Memberselect$485$497
Liberty$488$518
LM$503$521
Foremost$509$528
Metropolitan$535$555
First Liberty$536$553
Louisiana Farm Bureau$560$575
Property Owners$587$599
Hanover$742$759

Renters insurance cost comparison

The low cost of renters insurance might have you blinking an eye. That’s because you can get renters insurance for less than $30 a month on average, or $1 a day. As this is just an average, you might get a quote for a little more or a little less. Let’s take a look at monthly premiums for standard renters insurance for typical coverage amounts: 

How to save on renters insurance rates?

You can bump down the cost of renters insurance by increasing your deductible and lowering your coverage amounts. However, you want to be careful about having a deductible that’s so high that you can’t afford it should you need to file a claim. Along the same lines, you don’t want to decrease your coverage amounts so much that it’s not enough coverage. It’s a delicate balance between what you can afford and what you need.

You can also lower your premiums by scooping up discounts. Common discounts for renters insurance include:

  • Bundling policies with the same insurer (i.e., auto insurance with renters insurance)
  • Installing security systems
  • Installing smoke and fire detectors
  • Set up autopay 
  • Pay six months or a year ahead of time, instead of monthly  
  • Comparison shop 

Frequently asked questions

How much is renters insurance for $100,000?

Renters insurance for $100,000 liability hinges on a few things: how much personal property coverage you’re getting, the deductible, plus your credit score and where you live. According to a recent Insure.com cost analysis, the average cost of renters insurance for $40,000 coverage in personal property, $100,000 liability coverage with a $1,000 deductible is $326 a year or $27 a month. 

To up your personal property coverage by $300,000, which is the recommended amount, it costs a mere $1 a month—yup, you read that correctly. So you’ll be paying $341 a year, or $28 a month. For not even the cost of a cup of coffee, you can up your liability limits by $100,000.  

The cost of premiums can also vary dramatically based on where you live. States prone to more extreme weather are typically more costly to cover. In Mississippi, the cost of a policy with $40,000 personal property and $100,000 liability coverage is $579 a year, or $48.25. The price tag of a premium in Vermont with the same coverage amounts is $136 a year, or $11.33 a month.

Who has the cheapest rental insurance?

The insurer that offers rental insurance with the lowest price tag depends on where you live, your individual renter profile (i.e., your credit history, the type of building you live in), and how much coverage you get. All in all, based on Insure.com analysis, these nationwide insurance companies offered the cheapest rental insurance:

  • Allstate 
  • Farmers 
  • Nationwide 
  • State Farm 
  • Travelers

What is covered under renters insurance costs?

Unlike homeowners insurance, renters insurance won’t cover damage or destruction to the actual structure. Broadly speaking, a standard renters insurance policy typically covers three main types of coverage:

Personal property coverage

The insurance company will foot the bill to replace or repair your belongings that get damaged or stolen. And should a thief break into your car, it can also cover items stolen in your car. To gauge how much personal property coverage to include your policy, take an inventory of your personal items, and figure out how much it would cost to replace them. Also, snap photos of your items while you’re at it (it will save you time and trouble later).

Personal liability coverage

Let’s say a delivery person gets bitten by your dog while on your porch and threatens to sue you. This coverage can pay for legal costs from injury or damage to other people’s property. A recommended amount is $300,000, but $100,000 is considered barebones coverage.

Medical payment coverage

This is pretty much a type of liability coverage and could help pay medical expenses for guests injured in your abode, no matter who is at fault. However, it will only pay for guests, not for injuries suffered by you, your family members, or your pets. It’s usually set at $5,000. 

Loss of use coverage

Also known as additional living expenses, this helps pay for temporary housing and meals out and in some cases pet boarding and laundry services should your home become uninhabitable and you need to temporarily uproot.

Or if you can’t use your kitchen for a stint of time and can’t cook. It typically covers expenses so that your life is comparable to your normal day-to-day. This is a percentage of your personal property coverage and is usually set at 10%. 

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