How Much Is Renters Insurance?

What costs about the same as a weekly latte and protects your belongings from bad things that could happen?

No, it’s not a barbed-wire fence. It’s renters insurance!

Renters insurance is one of the most affordable types of insurance out there. If you’re wondering, How much is renters insurance?, you’re in the right place. We’ll break down everything you need to know.

What Is Renters Insurance?

Renters insurance protects your personal belongings if they’re ever damaged, vandalized or stolen. It's a type of property insurance that covers catastrophes like fires, electrical surges and explosions. Similar to homeowners insurance, it’s a way to transfer risk from you to an insurance company. By paying monthly premiums, the insurance company will pay to replace your things, after you’ve paid your deductible. This way you’re not draining your bank account when Murphy strikes.

Since your landlord’s insurance only covers their building, not your things, you need renters insurance. Period.

How Much Is Renters Insurance?

We’ll say it again. Renters insurance is some of the most affordable insurance you can get. While homeowners insurance and auto insurance can easily cost over $100 per month, renters insurance costs around $15 per month on average, or $180 per year.¹

Protect your home and your budget with the right coverage!

Even if you’re on an extremely tight budget, working the Baby Steps, you can put away 50 cents a day to insure $30,000 to $50,000 worth of stuff.

Let’s take a closer look at the average cost of renters insurance by state.

Renters Insurance Cost by State 

State	Cost of Average Yearly Premium
Alabama	$222
Alaska	$175
Arizona	$175
Arkansas	$211
California	$178
Colorado	$164
Connecticut	$188
Delaware	$157
Florida	$185
Georgia	$214
Hawaii	$181
Idaho	$152
Illinois	$166
Indiana	$172
Iowa	$144
Kansas	$172
Kentucky	$166
Louisiana	$234
Maine	$149
Maryland	$161
Massachusetts	$191
Michigan	$185
Minnesota	$140
Mississippi	$252
Missouri	$179
Montana	$147
Nebraska	$149
Nevada	$182
New Hampshire	$148
New Jersey	$160
New Mexico	$186
New York	$189
North Carolina	$158
North Dakota	$126
Ohio	$169
Oklahoma	$236
Oregon	$161
Pennsylvania	$157
Rhode Island	$185
South Carolina	$184
South Dakota	$127
Tennessee	$195
Texas	$225
Utah	$155
Vermont	$153
Virginia	$152
Washington	$160
West Virginia	$189
Wisconsin	$143
Wyoming	$1462

Most Expensive States for Renters Insurance 

Location matters a lot when it comes to the cost of renters insurance. If you live in these five states, you can expect to open up your wallet a little wider. Four of these places are coastal, and all of them typically see more extreme weather.

State	Cost of Average Yearly Premium
Mississippi	$252
Oklahoma	$236
Louisiana	$234
Texas	$225
Alabama	$222

Least Expensive States for Renters Insurance 

Fun fact: If you live in South Dakota, you could move across the border to North Dakota and save $1 on renters insurance. Okay, maybe it’s not worth moving across state lines just to save on insurance, but it does seem like there’s some tough competition between the Dakotas!

Part of the reason these states see lower rates is they have fewer large cities. Property insurance rates are often tied to property values, which are obviously higher in more densely populated cities.

State	Cost of Average Yearly Premium
North Dakota	$126
South Dakota	$127
Minnesota	$140
Wisconsin	$143
Iowa	$144

Renters Insurance Cost by Coverage Amount 

Besides location, your insurance premium also depends on how much coverage you need. The higher the coverage amount, the more you’ll pay.

Here’s a list of the average premiums in the U.S. based on coverage amounts.

Coverage Limit	Annual Premium	Monthly Premium
$13,999 and under	$135	$11
$14,000 to $19,999	$149	$12
$20,000 to $25,999	$167	$14
$26,000 to $31,999	$182	$15
$32,000 to $37,999	$175	$15
$38,000 to $43,999	$202	$17
$44,000 to $49,999	$196	$16
$50,000 to $74,999	$235	$20
$75,000 to $99,999	$299	$25
$100,000 and up	$422	$35
National Average	$179	$153

How Is the Cost of Renters Insurance Determined? 

Now that we’ve looked at the average costs of renters insurance, let’s see how those costs are determined.

Here are some of the factors that will cause your renters insurance rate to rise or fall:

• Your credit history. Insurance companies sometimes use a credit-based insurance score to calculate your rate. So while they’re not pulling your FICO score, they are using credit history to partially determine your risk.
• History of claims. If you have a long history of filing insurance claims, your insurer will most likely see you as a greater risk. And claims can stay on your record for up to seven years. So it might be better in the long run to pay for small things out of pocket and not file a claim.
• Your deductible. The higher your deductible, the less you’ll pay per month, and vice versa.
• Coverage amounts. If you’re insuring $50,000 worth of stuff, your premiums will cost more. On the other hand, if your things are only worth $10,000, your renters insurance will be on the lower end.
• Your location and neighborhood. We already saw that location matters. If you live in a part of the country that sees more extreme weather (like hurricanes or flooding), you’ll probably need an extra layer of coverage and you’ll pay more. Neighborhood matters too. If you live in an area that sees higher crime, you might end up paying more for insurance.

What Does Renters Insurance Cover? 

Now, what kind of protection does renters insurance give you? A standard rental insurance policy covers the following things.

Personal Property

Things like your couch, your computer and that “hip” Christmas sweater (just don’t wear it in the family photo). Whatever you own, renters insurance has you covered, up to a certain limit. So if you buy $15,000 in property coverage, your insurance company would reimburse you up to that amount. However, if you own pricier possessions (expensive jewelry, art, etc.), you’ll need an endorsement. (An endorsement is an add-on to your policy that provides extra coverage.)

Also, it’s important to know the difference between actual cash value and replacement cost coverage. Actual cash value means the insurance company will write you a check for what the items were worth when they were lost or damaged, factoring in depreciation. Replacement cost coverage means your insurance company will pay the full amount to replace the item you lost.Liability Coverage

Renters insurance also covers accidents that happen in your apartment or home, again, up to certain limits. So if your dog bites your neighbor, or they slip on your floor, break an ankle and sue you, you’re covered. Liability would help pay for legal and medical expenses.

Additional Living Expenses

Renters insurance also covers you if you had to temporarily live somewhere else while your apartment was being repaired. Additional living expenses (ALE) covers things like hotel costs, clothing and food.

Personal property, liability and additional living expenses are just three of the main things renters insurance covers. It also covers things like:

• Theft (even if it happens while you’re on vacation)
• Items in storage units
• Food that goes bad from a power outage
• Some types of water damage are covered, like from flooded toilets or leaky pipes. However, renters insurance doesn’t cover certain natural disasters.

How to Save on Renters Insurance 

Now that we’ve answered, How much is renters insurance?, let’s look at some tips to save money.

Making fewer claims is one way to keep your premiums low. So if someone steals your purse, and it was only worth $50, it might not be worth filing a claim.

Another great way to save is to increase your deductible. Typically, the higher the deductible, the lower your premium. But only do this if you have enough in your savings to pay the higher deductible.

You can also save money by doing things like bundling your renters insurance policy with an auto insurance policy with the same company. Setting up autopay with your insurer or installing security features like deadbolts can also be an easy way to shave some costs off your monthly bill.

Finally, you might think sharing renters insurance with your roommates is a good way to save some cash. Sorry, but no. There are a lot of reasons it’s not worth it. It’s usually better to just get your own separate policy and avoid the hassle and added risk that comes with sharing a policy.

Get the Right Coverage

If you’re ready to start your very own rock-solid renters insurance policy, we recommend working with one of our independent insurance agents. They are part of our Endorsed Local Providers (ELP) program and are also RamseyTrusted. They can give you free quotes and help you find the right amount of coverage to fit your needs.

Connect with one of our ELPs today!