How Many Renters Have Renters Insurance In America? (June 2023) (2024)

FAQs

How many renters in the US have renters insurance? ›

How Many People Have Renters Insurance In America? 57% of Americans who rent have renters insurance, and with there being nearly 45 million renter households in the United States, that comes to almost 25 million households covered for renters insurance.

55 percent of U.S. renters, or 61 million people, currently have renter's insurance policies.

Approximately 80% of renters do not carry renters insurance. That's a staggering number considering a typical policy only costs between $150 and $300 a year—depending on where you live. For this reason alone, renters insurance is an excellent idea for anyone who rents a house, apartment, condo or other home.

According to the National Multifamily Housing Council, 44 million households are renters. However, many people are unprotected since 59% of renters don't have insurance. This means that if there's a fire or other unforeseen event, renters could lose everything, and many wouldn't have the means to replace these items.

The number of U.S. households renting homes has been gradually increasing for the past 10 years, reaching 43.95 million in 2021, a 2.3% increase over a year prior. In the ten years, the annual number of homes rented in the U.S. grew by 10.3%.

Register reported dreadful statistics about the plight of California tenants. The most worrying one is that 3.2 million tenants in California are rent burdened, which means people are spending 30 percent or more of their income on housing costs. No other state in the nation has more rent-burdened residents.

The average cost of renters insurance is about $15 to $20 per month¹. However, what you end up paying depends on a number of factors. Take a look at the information below to find out how your home or apartment renters insurance cost is determined.

Renters insurance isn't legally required, but a landlord can require tenants to have a renters policy. Many landlords want tenants to be insured to help avoid potential disputes if, say, their belongings are damaged while on the property, according to the Insurance Information Institute (III).

The average renters insurance cost in the U.S. is $148 per year, or about $12 per month, according to NerdWallet's latest rate analysis. We based this estimate on a policy for a hypothetical 30-year-old tenant with $30,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible.

California Homeowner vs.

7,223,672 or 54.9% of households in California own their homes. 5,934,201 or 45.1% of households rent their homes.

What percentage is tenants? ›

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If you can afford it, renters insurance is usually worth it. It will protect your belongings, provide liability coverage, and may cover your personal items when you travel. Renter's insurance protects you from a long list of perils, as well.

In fact, according to the Insurance Information Institute, 63% percent of renters don't have renters insurance, maybe because they think it's too expensive, or unnecessary, or they believe they're covered by a landlord or roommate's insurance policy.

If you don't have renters insurance, you risk losing your personal property, and your landlord's insurance will not cover your belongings inside the rental. Your personal belongings can only be covered if you purchase a renters insurance policy, which is one of the reasons why it is important to get it.

Roughly 30 million Americans of all ages had no health insurance in 2021. That's roughly 9.2% of the population. The number of people without health insurance varies between states.

The highest percentage of renters in the U.S. can be found on the East Coast. Newark, New Jersey ranks number one with 79.15%.

Overall, about 44 million households rented and the median income for all households was nearly $71,000 in 2021, according to the Census.

The study analyzed the U.S. Census Bureau housing data of more than 300 cities with a population of 100,000 or more and conducted a survey of over 1,000 people from around the country in November. Newark, New Jersey, has the most, with more than 79% of residents renting.

1. North Dakota. Residents have the lowest rent-to-income ratio in the U.S. — North Dakota's median overall rent is $853, which accounts for about a quarter (25.1%) of residents' monthly household income. The state has one of the lowest unemployment rates (2.1%), which is good for its residents' job security.

The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres. The bulk of that land is dedicated to timber in Northern California. But the most headline-worthy transaction of 2022 was the Four Sixes Ranch in Texas.

What state in the US has the cheapest rent? ›

1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.

Renters insurance is relatively affordable, costing an average of about $18 a month, or $214 a year. Free quotes, secure form, no spam.

Why is Lemonade home insurance so cheap? Lemonade Insurance offers low prices potentially because of the structure of its platform. Groups of customers pool their premiums into one collective pot that is drawn from when a claim needs to be paid out.

Renters insurance typically includes three types of coverage: Personal property, liability and additional living expenses. Personal property coverage can help pay to replace your belongings if they're stolen or damaged by a covered risk.

The amount you pay for covered health care services before your insurance plan starts to pay. With a $2,000 deductible, for example, you pay the first $2,000 of covered services yourself. A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible.

As a rough rule of thumb, auto insurance experts recommend liability coverage of at least 100/300/100 — meaning, $100,000 in body injury liability insurance per person, $300,000 in bodily injury liability per accident and $100,000 in property damage liability per accident.

The average annual premiums in 2022 are $7,911 for single coverage and $22,463 for family coverage.

American households spend an average of 5.3% of their income — or $5,423 — on health, auto and home insurance. Health insurance accounts for the biggest chunk of insurance costs at an average of 39.2%, while auto and home insurance account for an average of 32.8% and 28.0%, respectively.

How much is renters insurance in New York? The average cost of renters insurance in New York is $167 a year, or about $14 a month. That's less expensive than the national average of $179 a year. Renters insurance in New York City costs $191 a year, on average.

What is the average rent in the US 2023? ›

The average monthly rent for all apartment types in the United States rose substantially in 2021. As of February 2023, the average monthly rent for a two-bedroom apartment in the United States reached 1,320 U.S. dollars, up from 1,282 U.S. dollars a year before.

The average American renter is now paying more than 30 percent of their income on housing, as wages have failed to keep up with rent hikes and affordable units remain scarce, a new report shows. The nation is falling short of the demand for affordable housing by at least a million homes in some estimates.

The average U.S. renter now spends 30% of their income on rent, a new all-time high. Heard on: The housing affordability crisis has reached a new milestone.

Respectful Behavior

Pay rent on time. Follow lease terms. Refrain from causing problems with other tenants or neighbors. Keep from damaging your property beyond normal wear and tear.

Half of All Landlords Manage Their Own Properties

The remaining 11% consists of landlords that manage, but don't own their properties. On average, landlords have three properties to their name.

Percentage rent, also known as percentage lease, is a common guiding principle of calculating the minimum rent paid by the tenants to the owner. This concept of percentage rent is just one of many ways retail tenants are charged by the landlord to use the space.

Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability (and your money) if someone is injured at your rental home or apartment.

Location: If you move to a new area with higher rates of theft, natural disasters, or other risks, your insurance rates may increase. Inflation: Over time, the cost of goods and services tends to increase, and this can lead to higher insurance premiums.

It's an excellent idea to re-shop your policy every year to ensure you're not missing out on better deals with a different company. Renters insurance is pretty easy to switch, so it's worth your time to be sure you're getting the best deal possible.

Failing to Get Renter's Insurance

It's very cheap, and it's a huge mistake if you don't get it. If something happens, like a flood or a fire, renter's insurance will cover all your stuff. Depending on what you own, the coverage will usually cost you less than $20 a month.

How much is renters insurance in Florida? ›

How much is renters insurance in Florida? The average cost of renters insurance in Florida is $211 a year, or about $18 a month, according to NerdWallet's rate analysis. That's more than the national average of $179. Below is the average cost of renters insurance in 25 of Florida's largest metro areas.

Key Takeaways. Homeowners insurance covers the actual building you live in (and associated structures such as garages). With renter's insurance, the landlord will be expected to have coverage on the building, while your insurance will cover your personal property.

If your tenant fails to purchase renter's insurance, they are responsible for the cost of their damaged belongings. Additionally, if the tenant (or a guest of the tenant) is responsible for starting the fire, they may be responsible for paying the landlord's deductible on damages to the building.

About Lemonade

Lemonade offers a variety of policy types, including home insurance, renters insurance, and life insurance policies, as well as pet insurance and auto coverage. Founded in 2015, Lemonade is unique among the companies in our rating for being almost entirely online, from checking quotes to filing claims.

Key Takeaways. Landlords often require you to cover them as an additional insured as a part of your company's general liability policy. Your landlord requires this coverage to protect them from lawsuits over incidents that occur in the property you're leasing.

The U.S. uninsured rate in 2021 across race and Hispanic origin groups ranged from 5.7% for White, non-Hispanic people to 18.8% for those identifying as American Indian and Alaska Native, non-Hispanic. Hispanic or Latino people had among the highest uninsured rate in the nation at 17.7%.

Plus Over 11 Health Insurance Statistics For Jun 2023! Approximately 30 million people in the United States are uninsured and at risk of financial ruin if they become ill or injured.

Texas was the state with the highest percentage of uninsured among its population, while Massachusetts reported the lowest share of uninsured This statistic presents the percentage of the total population in the United States without health insurance in 2021, by state.

65.8% of the U.S. population lives in a home they own, and 34.2% rent.

Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability (and your money) if someone is injured at your rental home or apartment.

What is renters insurance in USA? ›

Renters insurance (sometimes referred to as "tenant insurance") helps cover unexpected events — otherwise known as covered perils. You may not always be able to prevent certain situations, such as theft, a break-in or a visitor's injury, and that's where renters insurance comes in.

Renting: What the Numbers Say. Census Bureau data from the second quarter of 2022 reveals that the homeownership rate is 65.8%, meaning nearly two-thirds of the occupied homes in the United States are owner-occupied.

Homeownership statistics by race show that the highest rates of homeownership are held by White households. Although homeownership rates for both Asian and Hispanic homeowners are above or around 50%, respectively, the rate for Black homeownership remains lower at just above 43%.

Of the approximately 50 million rental housing units in the United States, around 41% of the rental units are owned by mom and pop landlords, also known as individual investor landlords.

Insurance plans are beneficial to anyone looking to protect their family, assets/property and themselves from financial risk/losses: Insurance plans will help you pay for medical emergencies, hospitalisation, contraction of any illnesses and treatment, and medical care required in the future.