Average renters insurance cost for 2024
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BLUEPRINT
Updated 4:19 a.m. UTC April 1, 2024
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Key points
- The average cost of a renters policy is about $14 per month, but various factors can impact that amount.
- Doing a thorough inventory of your belongings will help you estimate how much renters insurance you should buy.
- Just because you don’t own your home doesn’t mean you won’t be held responsible if someone gets hurt there. Renters insurance can help pay for your legal fees if you’re at fault for another party’s injury.
Renters insurance is designed for people who rent their homes, and it contains several different types of coverage. The average renters insurance cost is about $14 a month, based on our analysis of the best renters insurance companies. That’s for $15,000 in personal property coverage and $100,000 in liability coverage, with a $2,000 deductible.
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What’s included in renters insurance costs?
Renters insurance costs $14 to $25 per month on average, depending on the insurance company, where you live and how much coverage you buy. Here’s a breakdown of average annual renters insurance rates by personal property coverage amount.
Average renters insurance cost by coverage amount
| COVERAGE AMOUNT | ANNUAL COST | MONTHLY COST |
|---|---|---|
$15,000
| $173
| $14
|
$30,000
| $227
| $19
|
$50,000
| $305
| $25
|
Although it’s one of the cheapest types of property insurance, renters insurance can end up saving you thousands of dollars if your belongings are stolen or destroyed by a problem covered by your policy, like a fire or windstorm.
Renters insurance can also cover your additional living expenses — like hotel stays, restaurant fees and pet boarding — if your rental is left temporarily uninhabitable following a covered problem and you need to stay elsewhere.
Renters insurance includes liability insurance to pay for someone else’s medical expenses or property repair costs if you’re at fault for an incident. If your dog bites someone at the park, for instance, liability insurance can cover the cost to treat that person’s injury. It can also pay for your legal representation and lawsuit settlements if you’re sued over the matter.
How much is renters insurance in your state?
Here’s the average cost of a renters insurance policy with $15,000 in personal property coverage in each state.
Most expensive states for renters insurance
When renters insurance companies calculate your rate, they’ll factor in your location and risk. If you live in an area that experiences frequent bad storms, you may see higher rates. That’s one reason why Louisiana — which sees hurricanes and tornadoes — rates are the highest.
Here are the five most expensive states for renters insurance for a policy with $15,000 in personal property coverage.
| STATE | ANNUAL COST | MONTHLY COST |
|---|---|---|
Louisiana
| $294
| $25
|
Mississippi
| $221
| $18
|
Arkansas
| $208
| $17
|
Georgia
| $187
| $16
|
Connecticut
| $185
| $15
|
Cheapest states for renters insurance
Here are the five cheapest states for renters insurance for a policy with $15,000 in personal property coverage.
| STATE | ANNUAL COST | MONTHLY COST |
|---|---|---|
Alaska
| $48
| $4
|
North Carolina
| $83
| $7
|
Wisconsin
| $100
| $8
|
South Dakota
| $108
| $9
|
North Dakota
| $109
| $9
|
What affects the cost of your renters insurance policy?
There are various factors that can impact the cost of your renters insurance, like where you live and how much coverage you need.
- Your location: Prices are higher in some states and cities than others. If you live in a city with a high home break-in rate or frequent weather-related disasters, you may see higher renters insurance costs.
- Your coverage level: If you have a lot of belongings (or expensive belongings), or you want peace of mind in terms of personal liability, then you’ll want to increase your coverage. As coverage increases, so does your rate.
- Discounts: Many insurers offer discounts if you install a fire or burglary alarm in your rental. You may also score a discount if you bundle your renters insurance with another policy, like car insurance.
- Your deductible: A deductible is how much is subtracted from your claim payout when you file a property damage claim. Most renters insurance companies offer deductibles of $250 to $2,000. The higher your deductible is the lower your rates will be, but the less you’ll be paid out in the event of a claim.
- Your claims history: If you’ve filed a claim in the past, you may see higher rates.
- Your credit history: If you have poor credit, your renters insurance rates will likely be higher. On average, a renters insurance policy with $30,000 in personal property coverage costs $72 more per year if you have poor credit.
Compare renters insurance cost for 2024
Here is a comparison of the best renters insurance companies, according to our analysis.
| STATE | OUR RATING | ANNUAL COST | COMPLAINT LEVEL |
|---|---|---|---|
Allstate
| 5 stars
| $106
| Very low
|
Nationwide
| 5 stars
| $126
| Very low
|
State Farm
| 4.5 stars
| $122
| Very low
|
Country Financial
| 4.5 stars
| $150
| Very low
|
Westfield
| 4.5 stars
| $159
| Very low
|
Chubb
| 4 stars
| $114
| Very low
|
American Family
| 4 stars
| $152
| Very low
|
Farmers
| 3.5 stars
| $166
| Very low
|
Erie
| 3 stars
| $204
| Very low
|
Travelers
| 2.5 stars
| $363
| Very low
|
USAA
| 2.5 stars
| $193
| Very low
|
Progressive
| 2.5 stars
| $217
| Low
|
Rates are based on the average annual cost for $15,000 personal property coverage, $100,000 in liability coverage and $1,000 in medical payments coverage. Source: Quadrant Information Services.
How to lower your renters insurance cost in 2024
You can save money on renters insurance costs through discounts and by raising your deductible. Below are some common renters insurance discounts.
- Bundling/multi-policy. If you bundle your auto insurance with your renters insurance you may get a discount on rates for both of your policies.
- Safety or fortified home. If your rental has a fire or burglary alarm, your renters insurance company may offer a discount.
- Paid in full. If you pay your renters insurance up front in one lump annual sum — instead of monthly — you may get a discount.
- Loyalty. If you remain at the same insurer for a certain amount of time, you may qualify for a discount.
Another great way to save on renters insurance costs is to shop around and compare renters insurance companies. It’s a good idea to shop around and get at least three quotes for renters insurance, then compare the policy costs and coverage. Comparing insurance companies can help you make sure you’re getting the best deal out there for your coverage needs.
How much renters insurance do you need?
A good way to figure out how much renters insurance you need is to estimate the value of your possessions. This might include things like:
- Furniture and home goods.
- Clothes.
- Jewelry.
- Electronics.
- Other personal possessions, such as artwork or fitness equipment.
Inventory what you own, collect receipts and estimate the total value. How much you believe your belongings are worth will give you a good idea of how much personal property coverage you need.
The more personal property coverage you need the higher your renters insurance rates may be, but it is in your best interest to have a level of coverage that is adequate for your possessions in case you need to file a claim. You may want to consider upgrading your personal property coverage to replacement cost coverage — while this typically increases your rate, you’ll be paid out at today’s prices if your belongings are damaged or destroyed.
Is $10,000 enough for renters insurance personal property coverage? Ultimately, that’s up to you to decide. If you live a minimalist lifestyle, consider yourself a bargain hunter or rent a room in a furnished apartment, that might be enough for you. If you have an expensive computer, nice bike, LCD television and other expensive items, then $10,000 probably won’t cut it.
When deciding how much liability coverage you need, consider how much you can afford to lose in an expensive lawsuit. Most insurers offer at least $100,000 in liability coverage, but you may be able to purchase up to $1 million depending on the insurance company.
Methodology
- $15,000, $30,000 or $50,000 in personal property coverage.
- $100,000 of liability coverage.
- $2,000 deductible.
Renters insurance costs FAQs
Renters insurance provides important levels of coverage for renters. Here are the coverages that make up a standard renters insurance policy.
- Personal property coverage: Pays to repair or replace your belongings in the event they are damaged by a covered event in your policy, like a fire. This coverage pays out for your belongings’ actual cash value, meaning deprecation is factored into the claim payout. Ask your insurer about a replacement cost coverage upgrade if you want to be paid out in today’s prices for your belongings.
- Loss of use coverage: Pays your additional living expenses — like hotel stays and restaurant bills — if you need to temporarily live elsewhere while your rental is being repaired after a covered cause of damage.
- Personal liability coverage: Pays for another person’s property damage repair bills or medical expenses if you are responsible for either. Liability insurance also pays for your legal representation if you are sued over the incident.
Medical payments coverage: Pays for a guest’s minor medical expenses if they are injured at your residence, regardless of who was at fault. Policy limits are usually between $1,000 and $5,000.
Renters insurance doesn’t include coverage for the structure of the home, or dwelling coverage. That’s because as a tenant you don’t own the physical structure, so you have no financial interest in insuring it — that’s what landlord insurance is for. Renters insurance also doesn’t cover repairs for the following types of damage: flood, earthquakes, mold, pest infestation, maintenance issues and wear and tear.
Home insurance is designed for people who own and reside in their house, whereas renters insurance is designed for tenants who rent their home. Home insurance includes coverage for the dwelling, or structure of the house, while renters insurance does not because renters don’t own the property.
Home insurance is more expensive because it includes dwelling coverage. Home insurance also offers more coverage add-ons and upgrades.
If you rent out your home frequently, but on a short-term basis only, you may need short-term rental insurance. Short-term rentals, such as those through VRBO or Airbnb, are considered business practices by your insurance company, and home insurance excludes coverage for business property. That means if a guest gets hurt and sues you, you won’t be able to file a claim with your home insurance company to cover your legal expenses.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
