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How Much Is Renters Insurance?

 How Much Is Renters Insurance?
Elizabeth Rivelli
Updated June 19, 2022
4 Min Read

If you rent a house or apartment, having a renters insurance policy is important. Renters insurance pays to replace your personal items if they get damaged or destroyed in a covered peril, such as a fire or hurricane. It also includes liability insurance and loss of use coverage.

Unlike other types of property insurance, renters insurance is pretty inexpensive. In fact, it’s among the cheapest insurance policies you can buy. However, renters insurance premiums vary by location. We’re going to explain the average cost of renters insurance, and how much the average policy costs in all 50 states.

The average cost of renters insurance

The average American pays $179 per year or 14.9 per month for renters insurance in the United States, according to the NAIC. One of the reasons why renters insurance is so cheap is because it does not include any coverage for the building itself. Renters insurance only provides coverage for personal property, liability, and additional living expenses.

Although renters insurance is affordable, every renter pays a different rate for their coverage. Factors like age and credit score will impact the cost of your policy. Another major factor that affects renters insurance premiums is your state and even your ZIP code. 

Average renters insurance rates by state 

The table below includes the average renters insurance premiums in all 50 states and Washington D.C., using data from the Insurance Information Institute. Remember that these rates are averages, and the exact amount you will pay depends on a number of personalized factors, which we’ll talk about later.

StateAverage Premium
State
Alabama
Average Premium
$222
State
Alaska
Average Premium
$175
State
Arizona
Average Premium
$175
State
Arkansas
Average Premium
$211
State
California
Average Premium
$178
State
Colorado
Average Premium
$164
State
Connecticut
Average Premium
$188
State
Delaware
Average Premium
$157
State
Florida
Average Premium
$185
State
Georgia
Average Premium
$214
State
Hawaii
Average Premium
$181
State
Idaho
Average Premium
$152
State
Illinois
Average Premium
$166
State
Indiana
Average Premium
$172
State
Iowa
Average Premium
$144
State
Kansas
Average Premium
$172
State
Kentucky
Average Premium
$166
State
Louisiana
Average Premium
$234
State
Maine
Average Premium
$149
State
Maryland
Average Premium
$161
State
Massachusetts
Average Premium
$191
State
Michigan
Average Premium
$185
State
Minnesota
Average Premium
$140
State
Mississippi
Average Premium
$252
State
Missouri
Average Premium
$179
State
Montana
Average Premium
$147
State
Nebraska
Average Premium
$149
State
Nevada
Average Premium
$182
State
New Hampshire
Average Premium
$148
State
New Jersey
Average Premium
$160
State
New Mexico
Average Premium
$186
State
New York
Average Premium
$189
State
North Carolina
Average Premium
$158
State
North Dakota
Average Premium
$126
State
Ohio
Average Premium
$169
State
Oklahoma
Average Premium
$236
State
Oregon
Average Premium
$161
State
Pennsylvania
Average Premium
$157
State
Rhode Island
Average Premium
$185
State
South Carolina
Average Premium
$184
State
South Dakota
Average Premium
$127
State
Tennessee
Average Premium
$195
State
Texas
Average Premium
$225
State
Utah
Average Premium
$155
State
Vermont
Average Premium
$153
State
Virginia
Average Premium
$152
State
Washington
Average Premium
$160
State
Washington D.C.
Average Premium
$157
State
West Virginia
Average Premium
$189
State
Wisconsin
Average Premium
$143
State
Wyoming
Average Premium
$146

States with the most expensive renters insurance

Some states have higher average premiums for renters insurance than others. The table below includes the top 10 most expensive states for renters insurance in the country:

RankStateAverage Annual Premium
Rank
1
State
Mississippi
Average Annual Premium
$252
Rank
2
State
Oklahoma
Average Annual Premium
$236
Rank
3
State
Louisiana
Average Annual Premium
$234
Rank
4
State
Texas
Average Annual Premium
$225
Rank
5
State
Alabama
Average Annual Premium
$222
Rank
6
State
Georgia
Average Annual Premium
$214
Rank
7
State
Arkansas
Average Annual Premium
$211
Rank
8
State
Tennessee
Average Annual Premium
$195
Rank
9
State
Massachusetts
Average Annual Premium
$191
Rank
10
State
West Virginia (tie)
Average Annual Premium
$189
Rank
10
State
New York (tie)
Average Annual Premium
$189

States with the cheapest renters insurance

The table below highlights the top 10 cheapest states for renters insurance per 2018 according to the NAIC report: 

RankStateAverage Annual Premium
Rank
1
State
North Dakota
Average Annual Premium
$126
Rank
2
State
South Dakota
Average Annual Premium
$127
Rank
3
State
Minnesota
Average Annual Premium
$140
Rank
4
State
Wisconsin
Average Annual Premium
$143
Rank
5
State
Iowa
Average Annual Premium
$144
Rank
6
State
Wyoming
Average Annual Premium
$146
Rank
7
State
Montana
Average Annual Premium
$147
Rank
8
State
New Hampshire
Average Annual Premium
$148
Rank
9
State
Maine (tie)
Average Annual Premium
$149
Rank
9
State
Nebraska (tie)
Average Annual Premium
$149
Rank
10
State
Virginia (tie)
Average Annual Premium
$152
Rank
10
State
Idaho (tie)
Average Annual Premium
$152

What determines the cost of renters insurance?

As you can see, renters insurance premiums vary significantly by state. However, there are a number of other factors that will impact the cost of your renters insurance premium. Here are some of the criteria that insurance companies use when calculating your rate:

ZIP code

The state you live in, and more specifically, your ZIPcode, are factored into your renters insurance premium. For example, neighborhoods with a high crime rate typically have higher insurance rates than areas with a low crime rate. Similarly, insurance is more expensive in ZIP codes that are located near the coastline, in flood zones, or near earthquake fault lines.

Age

Your age is another factor that will impact your renters insurance cost. Young renters usually pay higher rates than older renters, although the difference is not significant. Some insurance companies even offer discounts for retired renters who are at least 55-years-old. As you get older, the cost of your renters insurance policy will start to slowly decrease.

Credit score

One of the biggest factors that affects your renters insurance premium is your credit score. The higher your credit score is, the lower your premium will be. Conversely, renters with a bad credit score (anything below 670) can expect to pay the highest rates. Insurance companies view individuals with a poor credit score as high-risk, and therefore, more likely to file claims.

Claims history

Insurance companies pay close attention to your claims history when calculating your renters insurance premium. Renters with multiple claims on their record are considered high-risk and will pay a more expensive premium. If you have no prior claims on your record within the last few years, you will pay a lower rate, and you may also qualify for an additional discount.

Coverage

The last factor that impacts your renters insurance premium is your coverage. Raising your coverage limits offers more protection, but it also means that you will pay a higher premium. Additionally, if you customize your renters insurance policy with endorsements, like flood insurance or scheduled personal property coverage, your premium will increase even more.

Five ways to get cheaper renters insurance

Renters insurance is usually cheap to begin with, but there are ways to get an even lower rate. Here are five ways to get cheaper renters insurance in any state:

  1. Shop around: First, make sure to shop around and look into several providers before choosing one. Get a few different quotes and compare them to see which insurance company can give you the lowest rate for the type of coverage and the amount of coverage you need.
  2. Look for discounts: Most renters insurance companies offer discounts that can help you get a lower premium. Choose an insurance company that offers multiple discounts you can take advantage of for maximum savings.
  3. Raise your deductible: Raising your deductible can lower your monthly premium. But before increasing your deductible, make sure you can afford the higher out-of-pocket cost in the event that you need to file a claim
  4. Improve your credit score: Improving your credit score is one of the most effective ways to get a cheaper renters insurance premium. If you currently have bad credit, work on getting your credit score into the ‘good’ category (between 670-739) to lower your premium.
  5. Pay your premium in full: Most insurance companies will lower your premium if you choose to pay your annual premium upfront and in full, rather than in 12 separate monthly installments. 

Renters insurance probably won’t break your budget, so if you rent your home or apartment, it’s a good idea to invest in a renters insurance policy. Renters insurance offers valuable protection for your personal belongings and your liabilities. Before you buy a policy, find out how much you can expect to pay in your state, then shop around, and get multiple quotes. Use the tips listed above to get the cheapest rate possible for the amount of coverage you need.

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