How Much Is Renters Insurance? (2024)

Renters insurance can be easy to forget. Unlike car insurance, it’s not required by any state laws. And it may seem like just another monthly bill you’d rather not pay.

But if you want to financially protect your belongings from problems like fire and theft, you’ll want the best renters insurance. You might be delighted to learn you can often find coverage for about $14 a month.

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How Much Does Renters Insurance Cost?

Cheapest Renters Insurance Companies

How Much Is Renters Insurance In Your State?

How Much Is Renters Insurance in Your City?

Factors Affecting Renters Insurance Rates

How to Get Cheaper Renters Insurance

How Do I Buy Renters Insurance

Renters Insurance Cost FAQs

How Much Does Renters Insurance Cost?

Renters insurance costs an average of $173 a year for a policy with $15,000 of personal property coverage. The average cost of renters insurance for a policy with $30,000 is $227 annually, and a $50,000 policy costs an average of $305 annually.

“Renters insurance is way cheaper than you think,” says Yael Wissner-Levy, a spokesperson for Lemonade Insurance. “Renters insurance is the best defense against things in life you have no control over—like your phone getting stolen on the subway or your apartment flooding because your neighbors left the faucet on.”

And renters insurance covers much more than theft and fires. It also includes:

• Liability insurance. Personal liability insurance pays for injuries and property damage you accidentally cause to others. If your child accidentally hurts another kid on the playground, or your dog bites someone in the dog park, liability insurance can pay their medical bills. If you have a kitchen fire that spreads to a neighbor’s unit, this coverage pays for damage to their belongings. Liability insurance also covers the cost of your legal defense if you are sued because of an accident.
• Additional living expenses coverage. Also known as loss of use, additional living expenses coverage kicks in if you can’t live in your apartment due to a problem like a fire. It provides reimbursem*nt for extra expenses that go beyond your regular household bills, such as money to help pay for hotel rooms, restaurant meals and storage.

Cheapest Renters Insurance Companies

How Much Is Renters Insurance in Your State?

The annual average renters insurance cost by state varies—as cheap as $48 a year for $15,000 of personal property coverage in Alaska to $294 a year in Louisiana, based on our analysis.

How much you pay for renters insurance depends on several factors, including where you live, past claims you’ve made and your credit (in states that allow credit as a pricing factor). For example, if you live in an area that is prone to severe weather or has high crime, you’ll typically pay higher rates.

Average Renters Insurance Cost by State

Most Expensive Renters Insurance Companies by State

Cheapest Renters Insurance Companies by State

How Much Is Renters Insurance in Your City?

We analyzed rates from top renters insurance companies for over 90 large cities in the U.S. and found Durham, North Carolina, to be the cheapest overall. Average renters insurance costs in Durham are:

• $59 a year for $15,000 in personal property coverage
• $90 a year for $30,000 in personal property coverage
• $133 a year for $50,000 in personal property coverage

The most expensive cities for renters insurance were Detroit and New Orleans:

• Detroit: $219 a year for $15,000 in personal property coverage
• New Orleans: $298 a year for $30,000 in personal property coverage
• New Orleans: $415 a year for $50,000 in personal property coverage

Factors Affecting Renters Insurance Rates

In addition to your location, several factors can affect the cost of renters insurance, including:

• Coverage limits.
• Your deductible.
• Your claims history.
• Your credit.
• Dog ownership (sometimes).

Coverage Limits for Renters Insurance

One of the biggest factors that will affect your renters insurance cost is how much coverage you buy. Renters insurance can be broken down into three main components.

Types of coverage within a renters insurance policy

Replacement cost vs. actual cash value coverage for personal property

Whether your renters insurance policy uses replacement cost or actual cash value (ACV) coverage affects your premiums.

If your belongings are stolen or damaged, ACV coverage takes into account depreciation and will pay you only the current value of the items. Replacement cost is a more expensive option but it will pay to replace your items with similar, new items.

Your Deductible

An insurance deductible is the amount of money deducted from the insurance check if you file a claim. For example, if you have a $500 deductible and your claim is $5,000, you’ll get an insurance payment for $4,500.

Renters insurance deductibles commonly range from $250 to $2,000. The higher your deductible, the less you’ll pay in premiums. That’s because your insurance company will pay out less if you file a claim.

Your Claims History

A renters insurance company will take a look at your recent claims history when setting your rates. If you’ve filed claims in the past, expect higher premiums.

Your Credit

Insurance companies make a correlation between credit and the likelihood that people will make insurance claims. The higher your credit-based insurance score, the lower your chances are of filing a claim, which means lower rates (except in states that ban the practice).

Credit-based insurance scores are similar to other credit scores and look at:

• Past payment history
• Current levels of debt
• Length of credit history
• New credit/pursuit of new credit
• Types of credit used

Dog Ownership

Some renters insurance companies will exclude certain dogs from coverage or tack on a surcharge. This could happen to you if you have a:

• Trained attack dog
• Dog with a history of biting
• Unneutered male dog

Specific dog breeds, including Doberman pinschers, pit bulls, Rottweilers and wolf hybrids, are also often among the dog breeds banned by insurance companies. Not all insurers have lists of banned dog breeds.

How Much Renters Insurance Do I Need?

To determine how much renters insurance to buy, estimate how much coverage you need for your belongings and how much you could lose in a lawsuit. Here’s how to figure out how much renters insurance you need.

Take Inventory of Your Possessions

Estimate the total value of your belongings to determine how much personal property coverage to buy. You can do this by taking a home inventory of all your possessions, including electronics, furniture, clothes and jewelry. Include the estimated price or current value of the items, if possible, age, purchase date and serial number if applicable. Gather any receipts.

If you’re buying replacement cost coverage, you want to estimate the amount needed to replace all of your belongings. This becomes your target number for personal property coverage in your renters insurance policy.

Your home insurance agent or company should also be able to help you with an estimate of how much personal property coverage to buy. A typical coverage amount is $30,000.

Figure Out a Sufficient Liability Insurance Amount

The liability portion of a renters insurance policy covers accidental property damage and injuries you cause to others. A renters policy may default to $100,000 in liability coverage, but if you need more, you can typically buy more. Make sure you buy enough liability insurance to cover what could be taken from you in a lawsuit.

Other Renters Insurance Coverage Types to Consider

A standard renters insurance policy includes coverage for personal property, liability, additional living expenses and medical payments to others. But you may want other types of renters insurance coverage to fill any gaps in your policy. Here are some to consider:

• Bed bug endorsem*nt. A standard renters insurance policy won’t cover bed bugs, but your renters insurance company might sell a bed bug endorsem*nt.
• Cyber insurance. You may be able to add personal cyber insurance to your renters policy to cover expenses related to data recovery and system restoration, credit card fraud, cyber extortion and identity theft.
• Earthquake insurance. A standard renters policy won’t cover earthquake damage. If you live in a quake prone area, you’ll need to get earthquake insurance.
• Flood insurance. A standard renters policy doesn’t cover flood-related damage. If you want coverage you’ll need to get flood insurance for renters from the National Flood Insurance Program or a private insurer.
• Schedule personal property. A standard renters insurance has “special limits” for the theft of high-value items such as jewelry. If you have valuable items, it’s a good idea to schedule personal property so it’s fully insured for what it’s worth.

How to Get Cheaper Renters Insurance

There are multiple ways you can save on your premium. Here’s how to find cheap renters insurance.

Shop Around for Renters Insurance

Get renters insurance quotes from multiple renters insurance companies. Request quotes for the same level of coverage and see which insurer will give you the best renters insurance rates.

By doing some legwork, you may be able to find better renters insurance rates. We found that renters insurance rates span over $400 a year between the cheapest and most expensive renters insurance policies, based on $50,000 in coverage.

Get Renters Insurance Discounts

You can shave some money off your renters insurance bill with discounts, such as:

• Home safety discounts. If your home has safety devices, such as deadbolt locks on exterior doors, smoke alarms, sprinklers or a security alarm, you may qualify for a discount.
• Payment discounts. You can typically earn small discounts for paying in full, enrolling in autopay and going paperless.
• Loyalty discounts. Insurers often provide discounts for customers who renew their policies. That’s a nice perk, but don’t let it prevent you from shopping for a better deal by getting quotes from other insurers.

Renters and Auto Insurance Bundle

Bundling insurance saves you money when you buy two or more policies from the same company. This is also called a multi-policy discount. An auto and renters insurance bundle will often result in a discount.

But even with a discount, bundling your car insurance and renters isn’t always the best way to save. You may be able to get a better deal if you buy your car and renters insurance as separate policies from different companies.

Increase Your Deductible

Renters insurance deductibles often start at $250, but increasing it to $1,000 or more can save you money.

Ask the insurer how much you would save by increasing the deductible to see if it’s worth it. If you decide to increase your deductible, try to set aside enough money to have the deductible amount on hand if you need to file a claim later.

Improve Your Credit Score

Most states allow insurance companies to use a person’s credit history to set rates. While the use of credit as a pricing factor is controversial, insurance companies often cite a correlation between low credit scores and a higher likelihood that someone will file an insurance claim.

Generally, the better your credit, the less you will pay for renters insurance.

How Do I Buy Renters Insurance?

When you’re looking to buy renters insurance, your first step is to figure out how much personal property and liability coverage you need. Renters insurance liability coverage often starts at $100,000, but you can increase it if needed.

Once you know what you need, see which insurance companies offer renters insurance in your state. If you have car insurance, check with that company to see if it also offers renters insurance. See how much you can save by bundling the two policies.

You can also request renters insurance quotes from multiple insurers that offer coverage in your state. Ask for quotes for the same level of coverage and make sure you maximize discounts. You can contact each insurance company, use an online tool that lets you compare prices, or use an independent insurance agent to provide you with quotes from multiple companies.

Methodology

Average renters insurance rates were calculated using data from Quadrant Information Services. Rates are based on a policy for a 30-year-old single female with good credit and no past claims. Rates are for policies with $15,000, $30,000 or $50,000 in personal property coverage, liability coverage of $100,000 and a $2,000 deductible.