What Is the Average Renters Insurance Cost?

The average cost of renters insurance is determined by a combination of multiple factors — some you can control and others that you can’t. Let’s get into the nitty-gritty of a renters insurance policy and go through the insurance premium factors that can raise or lower your tenant insurance average cost.

Renters insurance rates in the United States average at about $14 per month or $166 per year for $20,000 in coverage for your personal belongings and $100,000 in liability coverage. Your coverage amounts have a direct controllable impact on your premiums, while things like the state you live in and your relation to potential natural disasters may be fixed.

Depending on how much you pay for coffee, the average cost of renters insurance per month is equal to two or three cups of coffee. It’s certainly a smarter investment than the coffee because it offers protection for your personal belongings, liability coverage for unforeseen incidents and reimbursements for many living expenses incurred if you’re unexpectedly forced to move out of your rental home due to a covered peril. 

So, if you’re wondering how much should renters insurance cost in your state, let’s take a look at renters insurance estimates in each state across the U.S. to find out.

While the average price of renters insurance is low compared to the average cost of homeowners insurance, they aren’t immune to recent rising costs. States like Louisiana, Alabama, Oklahoma, and Mississippi face above-average rates due to the likelihood of severe weather and inflation. 

The monthly renters insurance cost is about $14 per month. However, renters must remember that each policy is different. So, your premiums may be higher or lower depending on several factors, like your coverage limits, location, residence type, and more. 

The average renters insurance cost per month is a pretty fair deal, considering how much coverage you get for the price. If you’re on a tight budget, you could replace a monthly streaming service with your coverage or resist temptation in the clearance section just one time. The peace of mind your policy provides is well worth the cost of your renters insurance premium.

Average renters insurance costs include a variety of coverages for things such as your belongings, your liability in an accident, and the cost of basic necessities should your rental be considered a total loss after damage from a covered peril.

Let’s investigate these coverages that contribute to the approximate cost of renters insurance. 

The main part of your renters insurance is personal property coverage. This coverage reimburses you if your belongings are damaged or destroyed by a covered peril. When it comes to personal property coverage, the average amount for renters insurance rests at about $20,000. 

Belongings such as furniture, electronics, clothes and jewelry are commonly covered. Although you probably have a lower limit for jewelry coverage that may require you to seek additional coverage through a rider or endorsement.

So if a fire or hurricane destroys your personal belongings, or they’re stolen from your home, your renters insurance will be there to help you out. All you need to do is file a claim, pay your deductible and your insurer will take care of the rest, cutting you a check to replace your belongings.

Liability coverage is also a significant contributor to the cost of rental insurance It helps to pay for medical bills if someone is injured on your property and you’re found liable, property damage you cause to someone else, dog bites that occur on or off the property and legal fees if one of those incidents results in a lawsuit filed against you.

Most renters insurance has $100,000 in coverage for your liability. If you file a claim, an insurance company will only pay a maximum amount of $100,000 if you file a claim. If the damages exceed that amount, you’re responsible for paying the rest. 

You can usually get up to $500,000 in liability coverage from your insurer and $1 million or more by purchasing a separate umbrella policy. The average cost of $1 million in personal liability costs renters more on their premiums, so be aware that your premiums may increase with more liability coverage.

Additional living expenses coverage is another key controllable factor affecting your renters insurance price. This is the amount of money an insurance company will pay toward unexpected costs if a covered peril forces you to temporarily move out of your rental property due to damage.

If you set your policy at a $2,000 maximum, your insurance company will only provide up to that amount for relocation fees, such as finding a temporary place to live, extra gas money for longer commutes, a storage unit to house the belongings you can’t bring with you and other related expenses. If you set it at $20,000, there’s a chance your insurance company will have to pay that amount. Again, they’ll offset the increased risk of a higher payout by increasing your cost of renters insurance.

The average rental insurance costs about $166 annually or $14 monthly for $20,000 in personal property coverage and $100,000 in liability coverage. While policies come with an average range of coverage, policyholders can adjust their coverage limits to their needs. 

The average renters insurance coverage provided by the standard HO-4 policy is enough for some, but may not be enough for all renters. Let’s see how renters insurance pricing varies based on how much liability coverage you maintain.

If you maintain $100,000 in liability renters insurance, you’re likely to pay about $166 annually for your coverage, or whatever the average rate for coverage is in your state. You’re likely to pay the average rate for this amount of liability coverage because it is the coverage limit found on an average HO-4 policy.

With a $500,000 renters insurance liability limit, you’re likely to pay premiums above the average national rate and above the average rate in your state. Since the standard amount of liability on a renters insurance policy is $100,000, you’ll pay a bit more for significantly more coverage. 

While your coverage limits certainly affect your renters insurance prices, there are several other factors that affect your rates, too. When insurers determine your premiums, they calculate your risk of filing a claim. So, most of these factors help them understand your risk. 

The deductible on your policy determines how much you must first pay before the insurance company kicks in and pays the remaining amount. The higher your deductible, the cheaper your renters insurance monthly cost. That’s because you’ll have to pay more per claim, and your insurer will pay less.

For renters, deductibles typically start at $500 and go up to $1,500. If you have a $500 deductible and suffer $20,000 in losses, you must pay $500 and your insurance company will pay the remaining $19,500. If you have a $1,000 deductible and you suffer $2,000 in losses, you must pay $1,000 and your insurance company will pay the remaining $1,000.

In the latter example, it may be worth paying out of pocket for the damages. Filing a claim can increase your premiums, and the more you file, the riskier you become to insurers.

There are two kinds of coverage you can choose from that pay to repair or replace your personal belongings if they’re damaged, destroyed or stolen due to a covered peril: actual cash value and replacement cost. 

Actual cash value takes depreciation due to aging and general wear and tear into account, which reduces the value of your belongings. Replacement cost simply pays you the exact amount you bought an item for — even if it’s 10 years old.

So a renter who files a claim for a stolen laptop can receive two different amounts depending on which coverage they enroll in. If the laptop was purchased 5 years ago for $1,000, a renter with replacement cost coverage would receive the full $1,000 from their insurer. A renter with actual cash value coverage may only receive $500 if the insurer deems the laptop has a 10-year lifespan.

Since renters insurance replacement cost coverage nearly always pays out more than actual cash value coverage, it increases your monthly renters insurance.

Owning a dog could significantly increase your renters insurance rates because they’re deemed to carry a higher risk. Dog bites are one of the leading causes of home insurance claims and force companies to pay out hundreds of millions of dollars each year. There are also certain breeds deemed to be riskier than others.

Where your rental home is located plays a part how much is renters insurance typically. If you live in an area with a high crime rate, you’ll pay more in premiums due to an increased risk of theft. If you live in a state or area that’s prone to natural disasters, you’ll see an uptick in your premiums compared to locations that don’t see much natural disaster activity.

Are you renting a single-family house, apartment, duplex, mobile home or something else? Each residence type comes with its unique risk factors, which all have an impact on your renters insurance monthly cost.

Mobile homes are more susceptible to storm damage. Living in an apartment affects your risk factor because your neighbors could accidentally start a fire or cause water damage to your belongings. While houses don’t see the damage risk caused by neighbors and are typically more sturdy standing up against natural disasters, they may be an easier target for theft and vandalism, and thus, pricier to insure that the average apartment insurance cost.

Many safety features can be added to your home to reduce your average renter insurance cost. Smoke detectors prevent extra damage from a fire spreading. A monitored security system and reinforced door locks deter thieves from breaking in and stealing your stuff. Impact-resistant windows keep your belongings safe during harsh windstorms. All of these things can play a key factor in keeping monthly premiums low, especially with the increased average rate of renters insurance surpassing the rate of inflation.

If you bundle a renters and auto insurance policy with the same company, you could save yourself a little bit of money each month on your renter insurance cost. In addition, if you stay with the same company for a certain number of years, they may be more inclined to provide a discount for being a loyal customer.

The average renters insurance for a 1 bedroom apartment will likely cost less than the premiums on a large apartment or rental home because you’re likely to have less stuff to insure in a smaller space. Rates will largely depend on what type of dwelling you’re insuring, so they’re bound to vary when insuring a house, apartment, or mobile home. 

The average home renters insurance cost will likely be on par with the average apartment insurance cost. Costs always vary from person to person, but as long as you don’t live in a particularly high-risk area, you’re likely to see an average cost for renters insurance in the range of $166 for an annual premium.

Now that you know how much does renters insurance normally cost, you’re ready to start gathering rates and searching for your perfect policy. Whether you want 6-month renters insurance or a policy to last for the duration of your lease, as a licensed insurance agency in nearly 20 states across the U.S., Clovered can help you get the best policy for your needs at the best price.

All you need to do is answer a few questions about your residence in our online quoting tool, we’ll run some data in the background and get you on your way with a new policy in minutes — one that doesn’t break the bank.