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How Much Is Renters Insurance? Average Costs And Providers In 2024

February 25, 2024 5-minute read

Author: Jamie Johnson

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If you’re currently renting an apartment or house, renters insurance is a necessity. This coverage protects your personal belongings in the event of a theft, fire, or other unexpected event. And if you’re temporarily displaced from your home, renters insurance may help pay for your living expenses.

Fortunately, renters insurance is also relatively cheap for most people. So, if you’ve been wondering how much renters insurance costs, this article will review the average prices and coverage options.

Renters Insurance Costs Across The United States

In the U.S., the average cost of renters insurance is $172, though your coverage limits, deductible and location determine the exact costs. The following table outlines the average costs in all 50 states and the District of Columbia, according to the Insurance Information Institute. However, individual rates vary and this table is meant to give you an average cost for your area.

State

Average Premium

Alabama

$225

Alaska

$186

Arizona

$164

Arkansas

$210

California

$171

Colorado

$161

Connecticut

$180

Delaware

$151

Washington, D.C.

$159

Florida

$182

Georgia

$212

Hawaii

$176

Idaho

$148

Illinois

$157

Indiana

$164

Iowa

$136

Kansas

$162

Kentucky

$157

Louisiana

$247

Maine

$148

Maryland

$160

Massachusetts

$172

Michigan

$181

Minnesota

$134

Mississippi

$256

Missouri

$172

Montana

$153

Nebraska

$143

Nevada

$179

New Hampshire

$147

New Jersey

$154

New Mexico

$180

New York

$173

North Carolina

$160

North Dakota

$116

Ohio

$162

Oklahoma

$226

Oregon

$154

Pennsylvania

$152

Rhode Island

$183

South Carolina

$186

South Dakota

$118

Tennessee

$187

Texas

$216

Utah

$147

Vermont

$151

Virginia

$152

Washington

$158

West Virginia

$179

Wisconsin

$128

Wyoming

$146

Where Is The Average Cost Of Renters Insurance The Cheapest?

The average cost of renters insurance is the cheapest in the following states: 

  • North Dakota: $116
  • South Dakota: $118
  • Wisconsin: $128
  • Minnesota: $134
  • Iowa: $136

Where Is The Average Cost Of Renters Insurance The Most Expensive?

On average, individuals living in the following five states will pay the highest rates for renters insurance:

  • Mississippi: $256
  • Louisiana: $247
  • Oklahoma: $226
  • Alabama: $225
  • Texas: $216

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Renters Insurance Rates: What’s Included?

Here’s what’s included when you purchase renters insurance:

  • Personal property coverage: This covers the cost of repairing or replacing any items that are damaged or stolen.
  • Liability: Renters insurance also provides liability coverage if someone is injured in your home or if you accidentally damage someone else’s property.
  • Additional living expenses: If your residence is uninhabitable for approved reasons, renters insurance will pay for a portion of your living expenses, like hotel bills and food.

How To Identify Reputable Renters Insurance Providers

It’s important to shop around and receive quotes from several different insurance providers before picking a renters insurance policy. This will help you not only find the best rates but find a reputable company.

Start by asking your friends and family members for referrals — what insurance providers have they worked with and liked? From there, you should research any companies you’re considering doing business with.

You should check out their AM Best rating, which assesses the company’s creditworthiness and how likely they are to default on their financial obligations. And the J.D. Power Score rating will tell you that company’s customer satisfaction rates.

Factors That Impact The Cost Of Renters Insurance

Renters insurance is complex, and many different factors influence how much your premiums cost. Here are the biggest factors impacting the cost of renters insurance:

Your Location

Your location is one of the biggest factors affecting how much you pay for renters insurance. If you live in an area with high crime rates or a high incidence of weather-related disasters, you’ll pay more for coverage.

Your Coverage Selection

When you purchase renters insurance, you have to choose your coverage limits, which are the maximum amount the insurance will pay for a valid claim. If you choose high coverage limits, you’ll pay more for insurance whereas you could save money by lowering your coverage limits.

Your Credit History

Most states allow insurance companies to consider your credit history when evaluating you for coverage. Data shows that individuals with poor credit tend to file more insurance claims. So a good credit score will lead to lower renters insurance rates, while individuals with poor credit will pay higher rates.

Your Claims History

Insurance companies also look at your claims history, including the type of claims you filed and the settlement you received. If you have a history of filing large claims or liability claims, you can expect to pay more for renters insurance.

Your Deductible

The deductible is the amount you’re expected to pay out-of-pocket when filing a claim. After your deductible is paid, your renters insurance kicks in and covers the rest. The higher your deductible, the less monthly premium you’ll pay for renters insurance.

How To Lower Your Renters Insurance

Renters insurance tends to be pretty affordable, but here are some additional ways you can lower the costs:

  • Bundling policies: Most insurers will offer you a discount for purchasing more than one insurance policy. For example, you could bundle your renters and auto insurance policies.
  • Install security systems: A security system that alerts the police of a potential burglary could help lower your renters insurance price.
  • Minimize claims: If you file too many claims, your insurance company will start to see you as a liability risk. And some insurers will give you a discount for an extended claim-free period.
  • Set up auto-pay: Most insurers will give you a discount for setting up auto-pay. And automatic payments mean you don’t have to remember to pay your premiums each month.

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FAQ About Renters Insurance Rates

Here’s some additional information on buying and saving money on renters insurance.

How much does renters insurance cost?

The national average for renters insurance is $172, but the exact cost varies by state and local region. Your coverage limits, deductible, and claims history can also impact the average renters insurance cost.

What isn’t covered by renters insurance?

Renters insurance doesn’t cover flooding, earthquakes or sinkholes. If you live in an area where you’re at high risk for one of these events, you should consider purchasing a separate policy.

Is renters insurance mandatory?

No, renters insurance isn’t mandatory, though some landlords may want you to purchase it. However, all renters should consider buying it since it provides coverage if your personal belongings are stolen during a break-in or destroyed by a fire.

How does renters insurance compare to homeowners insurance?

The biggest difference between renters insurance and homeowners insurance is that the latter covers the structure of the building. The former only covers your personal belongings since landlord’s insurance will cover the property’s structure.

How much renters insurance do I need?

You should have enough renters insurance coverage to replace your belongings in the worst-case scenario. Take some time to determine the value of your belongings and how much personal liability coverage you can afford. The more coverage you purchase, the better protected you are in an emergency.

The Bottom Line

Renters insurance is important coverage for all renters and it tends to be pretty affordable. If you’ve been renting for a long time and are ready to buy a home, you can start the mortgage approval process with Rocket Mortgage® today.

Jamie Johnson

Jamie Johnson is a Kansas City-based freelance writer who writes about a variety of personal finance topics, including loans, building credit, and paying down debt. She currently writes for clients like the U.S. Chamber of Commerce, Business Insider, and Bankrate.