Renters Insurance

Average Cost of Renters Insurance (2022)

Average Cost of Renters Insurance (2022)

The average cost for renters insurance is $18 per month in the U.S.

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Depending on the state you live in, the average cost of renters insurance can range from $12 to $34 per month.


Average renters insurance cost by state

The average cost of renters insurance is $18 per month nationally, but your quotes 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.

State
Average monthly rate
Alabama$29
Alaska$22
Arizona$18
Arkansas$23
California$17
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States with the highest renters insurance costs

The top five most expensive states for renters insurance are all in the South.

The average cost of renters insurance is highest in Louisiana, where a typical policy costs $34 per month, or $409 per year.

Renters living in Mississippi, Alabama, Georgia and Florida also pay much more than average for renters insurance — between $27 and $31 per month.

The most expensive states for renters insurance

Renters may pay more for insurance in these states because they're more likely to experience hurricanes and other risk factors. Another cause of higher renters insurance costs could be the average age or condition of the buildings that renters live in.


States with the cheapest renters insurance quotes

Renters in New Hampshire, South Dakota and Maine pay the lowest rates in the country at around $12 per month. Renters insurance may be cheaper in these states because they experience fewer natural disasters.

Iowa and Wisconsin round out the top five most affordable states for renters insurance.

The most affordable states for renters insurance

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Average cost of renters insurance in major cities

The average cost of renters insurance is $21 per month across 48 of the most populated cities in the United States.

That's about $3 per month more than the overall national average. However, renters in Seattle, Los Angeles, New York City and Chicago pay cheaper rates — between $14 and $16 per month.

City
Average monthly cost
Seattle, Washington$14
Los Angeles, California$14
Santa Ana, California$15
San Jose, California$15
Raleigh, North Carolina$15
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Average renters insurance cost by company

The cheapest renters insurance quotes can usually be found at Lemonade. The average price of renters insurance from Lemonade is around $12 per month, or $140 per year.

Graph showing the average cost of renters insurance from top companies across the country

Renters can also find affordable rates from State Farm, Travelers, Amica and Nationwide.

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Company
Average monthly cost
Lemonade logo
Lemonade$12
State Farm logo
State Farm$14
Travelers logo
Travelers$17
Amica logo
Amica$17
Nationwide logo
Nationwide$18
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What factors affect the cost of renters insurance?

Renters insurance quotes are based on several factors, including:

Claims and credit history

Insurance companies believe that people with a history of claims are more likely to make future claims.

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

Not all claims are viewed equally. Insurance companies will consider the type of claim you filed and the settlement amount when determining your insurance quotes. Large claim amounts and liability claims are the most likely to raise your renters insurance rates.

Insurers may also charge you more for insurance if you have a poor credit score. Statistically, renters with lower credit scores tend to file claims more frequently than those with high credit scores. That makes it riskier for them to insure people with poor credit, which results in higher rates for those individuals.


Coverage choices

The amount of coverage you get directly affects your renters insurance rate. Although it may be tempting to get the cheapest policy, it's important to not lower your coverage so much that you leave yourself unprotected if something happens.

For example, a renter living in Dallas with $15,000 of personal property pays about $15 per month for insurance. It costs $19 per month if you increase that coverage to $25,000. Although that's $4 more per month, the difference will seem minimal if your stuff is destroyed in a fire and you don't have enough money to replace it.

How much is personal property insurance for renters?

Personal property coverage
Average monthly rate
$15,000$15
$25,000$19
$50,000$29

Quotes are based on a renter living in Dallas with $100,000 of liability coverage and a $500 deductible

In addition, your landlord may require you to purchase a policy with a minimum amount of liability coverage.

Increasing your personal property coverage costs much more than raising your liability limits. Expanding renters liability coverage from $100,000 to $300,000 raises the average cost of renters insurance by around 7%.

How much is personal liability insurance for renters?

It only costs around $1 per month to increase personal liability coverage from $100,000 to $300,000. Upgrading from $300,000 to $500,000 of liability insurance also costs around $1 more per month.

Personal liability coverage
Average monthly rate
$100,000$15
$300,000$16
$500,000$17

Quotes are based on a renter living in Dallas with $25,000 of personal property coverage and a $500 deductible

Deductible amount

Your renters insurance deductible is the amount you must pay to replace your things if you file a claim. A typical renters insurance deductible is $500 or $1,000, but most companies offer a range of options.

You should choose a deductible amount based on how much you can afford to pay out of pocket if you suffer a loss.

Average cost of renters insurance by deductible

Deductible
Average monthly rate
$250$18
$500$17
$1,000$15

Quotes are based on a renter living in Dallas with $25,000 of personal property coverage and $100,000 of liability coverage

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


Your valuables

High-value items like jewelry or art are usually covered up to lower, category-specific limits, or excluded altogether. Endorsements are upgrades to your renters policy that you can buy to add or increase coverage for valuable items.

Common items you may need to add or expand coverage for include:

  • Computers and electronics worth over $1,000
  • Firearms worth more than $2,500
  • Jewelry worth more than $1,000
  • Musical instruments worth more than $500
  • Sports equipment worth over $500
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Adding extra coverage increases the cost of your renters insurance policy. However, that coverage might be necessary if you have valuables that aren't protected by a basic policy. Make sure to review what limits and coverages you're buying into before you sign up with an insurer.


How to save money on renters insurance

Only 57% of renters have renters insurance, but that doesn't mean you should pass on getting a policy. Renters insurance is an inexpensive way to protect your belongings against theft and accidental damage.

The best way to save money on renters insurance is by researching available discounts and comparing quotes to find the cheapest company.

Qualify for discounts

Renters insurance companies don't typically offer a lot of discounts. However, you can save money by choosing a company that offers discounts you can easily qualify for. Some of the most common renters insurance discounts are:

  • Bundling discount
  • Claim-free discount
  • Home security discount
  • Online purchase discount
  • Payment discount

Compare renters insurance quotes online

Renters insurance rates can vary based on your location, personal information, the amount of coverage you need and your claims history. For that reason, the cheapest company for you may be different than the most affordable option in your state. We always recommend comparing quotes from multiple companies to ensure you get the best rate available.


Frequently asked questions

How much does renters insurance cost?

The average renters insurance cost per month is $18 nationwide. However, the price you pay for renters insurance depends on how much coverage you need and where you live.

How much is renters insurance in Florida?

The average price of renters insurance in Florida is $27 per month, or $321 per year. Florida is the fifth-most expensive state for renters insurance in the country.

How much renters insurance do I need?

The amount of renters insurance you need depends on how much stuff you have. You also need to consider your risk exposure for lawsuits and whether your landlord requires a minimum amount of liability coverage.

How much is renters insurance from State Farm?

Renters insurance from State Farm costs $14 per month, on average. However, rates from State Farm range from $7 per month to $34 per month, depending on the state you live in.

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 12 companies, although not every company was available in every state.

Our sample renter is an unmarried 25-year-old man living alone with no pets. He has the following coverage limits:

Coverage
Limits
Personal property$30,000/*
Personal liability$100,000
Guest medical protection$1,000
Deductible$500

Liberty Mutual only offers a maximum of $25,000 of personal property coverage

His policy has the base level of loss of use protection, and he has never filed a claim.

To determine the difference in cost for varying levels of coverage, we gathered quotes from four insurers for an apartment in Dallas. We used the same sample renter as was used for national data.

Data on the percentage of renters with insurance came from the Insurance Information Institute's 2020 Triple-I Consumer Poll

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.