Renters Insurance

Average Cost of Renters Insurance (2022)

Average Cost of Renters Insurance (2022)

The average renters insurance policy costs about $19 a month. Find out where you can get it for less.

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Depending on the state you live in, the average cost of renters insurance can range from $12 to $37 per month (or $139 to $442 per year). That means an average policy could cost twice what you would pay for the same coverage elsewhere.

Only 41% of renters have renters insurance, but that doesn't mean you should pass on getting a policy for yourself. Renters insurance is a cost-effective way to protect your belongings against theft, accidental damage and more.


Average renters insurance rates by state

Nationally, the average cost of renters insurance is $19 per month, but the rates you see may differ based on where you live. That's because the likelihood of events such as fire, storms and theft, also called perils, varies from place to place. To understand these differences, we gathered data on the average cost of renters insurance in each state.

State
Average monthly rate
Average annual rate
Alabama$29$346
Alaska$16$187
Arizona$17$204
Arkansas$30$360
California$16$195
Colorado$15$180
Connecticut$19$228
Delaware$20$245
Florida$29$348
Georgia$25$300
Hawaii$19$224
Idaho$16$192
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Renters in Southern states see higher rates

The average cost of renters insurance is highest in Louisiana, closely followed by Michigan, Arkansas and Oklahoma. In the top four most expensive states, the monthly premium came out to at least $30 — or $360 per year of coverage. Mississippi rounds out the top five.

The most expensive states for renters insurance

Although that is still less than what homeowners typically pay for home insurance, it can be a significant cost for many renters. Rates may run higher in these states because of their greater exposure to risk factors such as hurricanes. Another cause of higher renters insurance costs could be the average age or condition of the buildings that renters live in.

Western states experience the lowest premiums

On the other end of the cost spectrum, renters in New Hampshire, Utah and Wyoming pay an average of around $12 per month, or about $144 annually. Two of these states are located inland and experience fewer natural disasters that drive insurance rates higher along the coast.

The most affordable states for renters insurance

New York and Maine round out the top five most affordable states for renters insurance. New York has the highest proportion of renters of any state in the country, so strong competition for renters insurance helps lower rates.

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Where to find affordable renters insurance

Larger, denser cities often have more affordable renters insurance rates. We found places such as New York City, Chicago and San Francisco all have renters insurance rates less than the national average.

Wherever you find yourself renting, finding the best, high-quality coverage from reliable insurers starts with looking at the best renters insurance companies.

State Farm is our overall recommendation for best renters insurance for its consistently low rates, dependable customer service and near-nationwide availability.

Another key factor in your search will likely be cost, as some companies offer more affordable coverage that doesn't sacrifice reliability.

How much is renters insurance in my city?

Where you live has an impact on your renters insurance rates. It's important to have a sense of the market in your town to know if you're getting a good deal on your policy. We collected data on rates in some of the largest cities in the U.S. to provide an idea of how cheap or expensive policies are where you live.

City
Average monthly cost
Average annual cost
New York, New York$16$197
Los Angeles, California$22$265
Chicago, Illinois$16$192
Houston, Texas$32$384
Phoenix, Arizona$19$228
San Diego, California$15$178
Dallas, Texas$24$288
Philadelphia, Pennsylvania$19$228
San Antonio, Texas$28$336
San Francisco, California$16$187
Austin, Texas$24$288
Columbus, Ohio$21$251
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What factors affect the cost of renters insurance?

Changing your coverage limits and deductibles are the best ways to control the price of your renters insurance. Your history with claims and your credit are factors you have less control over, but still impact your rates.

Although it may seem tempting to get the cheapest policy, it's important to not lower your coverage so much that you leave yourself unprotected if something happens.

Claims and credit history

Insurers generally consider people with a history of claims to be more likely to make future claims as well. For example, let's say you happened to make several insurance claims in the year before applying for a new renters insurance policy. That record may be taken as a sign that you're more likely to file claims in the future — leading to a higher monthly premium.

Home and renters insurance claims can stay on your insurance record for five to seven years.

Not all claims are treated equally. The consequences to your future costs may depend on the circumstances and amount of your prior claim. Large claim amounts and liability claims are the most likely to bump your premium higher.

Insurers may also look at your credit history when providing you with a renters insurance quote. Statistically, insurance companies have found that policyholders with lower credit scores tend to file claims more frequently than those with high credit scores. This makes it more expensive to buy insurance with bad credit, no matter how careful you are.

Coverage choices

The amount of coverage you get directly affects your renters insurance rate. Most of the default policies we looked at include personal property coverage up to $25,000 and personal liability insurance up to $100,000. If you're willing to pay more, you can increase these numbers to fit your own needs.

Your landlord may require renters coverage that includes a certain baseline level of liability coverage.

Dollar for dollar, expanding your personal property coverage costs much more than raising your liability limits. We found that increasing renters liability coverage from $100,000 to $300,000 raises annual premiums by 5% to 6%. Applied to the national average, that's no more than an extra $12 a year.

Personal property limit
Personal liability limit
Annual renters insurance premium
$15,000$100,000$124
$15,000$300,000$132
$25,000$100,000$153
$25,000$300,000$161
$50,000$100,000$224
$50,000$300,000$236

By contrast, we found that raising property coverage limits inflates renters insurance premiums by 20% to 80%. The table above shows how your annual premium changes based on different combinations of property and liability coverage. The numbers represent the average price of renters insurance offered in New York City by major insurance companies using similar coverage and a standard $500 deductible.

Deductible amount

Your renters insurance deductible is the amount you're responsible for paying before you get compensation in a claim. A typical renters insurance deductible is $500 or $1,000, but you can adjust the deductible on your policy to suit your needs.

Choosing a higher deductible means you'll be responsible for a larger share of the costs if you ever make a claim, but it also means you'll pay lower rates. Lower deductibles mean better protection but at a higher monthly cost.

Your valuables

In most renters insurance policies, high-value items like jewelry or art are excluded from coverage or covered up to lower, category-specific limits. Endorsements are extensions of your renters policy that you can buy to add or increase coverage for such items.

Purchasing an endorsement increases the cost of your renters insurance policy, but that coverage might be necessary if your most valuable belongings fall outside the protection of standard insurance. Make sure to review what limits and coverages you're buying into before you sign up with an insurer.

How to save using discounts and deductibles

So far we've found out how much a typical renters insurance policy costs and the factors that affect it. Here's how you can save money on renters insurance by seeking out specific discounts and adjusting your deductible.

Obtain all the discounts you qualify for

If you can prove you're a lower-risk customer, you'll often pay lower rates. So if you're a tenant with fire alarms, burglar alarms, deadlocks or other safety features, you may be entitled to a discount from your insurer.

Spend some time going through the application to make sure you've checked off all the qualifying discounts. If you own a vehicle, consider getting your auto insurance and renters insurance from the same company for a bundle discount.

Choose a lower deductible

Selecting a higher deductible on your renters insurance policy can lower your premium. However, this comes at the cost of less effective coverage.

You should choose a deductible amount that matches how much you can pay out of pocket if you suffer a loss.

You should always check how changing your deductible will affect your rates, which you can usually do using an insurer's online quote tool. Given that most claim situations come with substantial costs, we recommend erring on the side of a lower deductible.

Compare renters insurance online

The renters insurance providers you consider also affect the quotes you see. Traditional insurers cover renters, but they may charge higher rates unless you bundle that coverage with auto insurance or other policies.

Meanwhile, there are plenty of online insurance startups that provide renters insurance at competitive rates. You can use our tool to find and start comparing renters insurance options today.

Frequently asked questions

How much does renters insurance cost?

The price you pay for renters insurance depends on how much coverage you need and where you live. But on average, we found that a typical renters insurance policy costs about $19 per month nationwide.

Is renters insurance worth it?

Yes. Renters insurance is very affordable and pays for losses in case of theft, fire or other damage to your apartment. It also provides liability coverage, which protects you in situations such as a guest being injured at your apartment. Renters insurance is often required by landlords

How much is renters insurance in Florida?

The average price of renters insurance that we found in Florida is $29 per month, or $348 per year. That ranks as the sixth-most expensive rate in the country.

Methodology

We collected hundreds of renters insurance quotes from across the county to calculate the average cost of coverage in every state. Quotes came from 16 different companies, although not every company was available in every state.

The sample renter is an unmarried 30-year-old man living alone with no pets. He lives in a multi-unit building with brick veneer over frame construction. He has the following coverage limits:

Coverage
Limits
Personal property$30,000, or as close as allowed
Personal liability$100,000
Guest medical protectionAt least $1,000
Deductible$500

His policy has the lowest allowed level of loss of use protection, and he has never suffered losses or filed a claim before.

Data on the percentage of renters with insurance came from an Orchid Insurance study.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.