Average Cost of Renter Insurance: Premiums by State

Average Cost of Renter Insurance: Premiums by State

Average Cost of Renter Insurance: Premiums by State

The average cost of

renters insurance

in the US is about $15 per month or $174 per year, according to 2019 data from the Insurance Information Institute.

Tenant insurance protects you where your landlord’s coverage doesn’t. Your renters insurance protects all items you take into your new rented home or apartment. It also protects you from liability if someone in your unit is injured.

While rebuilding the structure won’t help if it burns down — that’s what your landlord’s insurance is for — it will protect you and your property. Several landlords or leasing companies require renters insurance as a condition of your lease.

The type of home you live in doesn’t play a big role in the cost of your renters insurance, especially since this insurance covers you and your belongings. However, your renter’s insurance costs vary based on your location and how much coverage you need.

How Much Does Renter Insurance Cost in My State?

Where you live plays a major role in how much you pay for renters insurance, according to data from the Insurance Information Institute.

You pay the most in Southeast. Mississippi, Alabama, Louisiana, and Texas are some of the most expensive states for renter insurance. They are also low-lying areas where floods and hurricanes are common. Insurance companies view them as higher risk and therefore will charge more in these areas.

South Dakota and Wisconsin, on the other hand, have some of the lowest renter insurance premiums. These states have relatively calm weather patterns.

Here’s what the average renter paid for coverage in every state in 2019, according to data from III.

States with the cheapest renters insurance

These are the states with the cheapest annual premium average.

States with the most expensive renters insurance

These are the states with the most expensive annual premium average.

Average Renter Insurance Price by Cover Amount

In general, renters insurance will cover a certain amount for your personal property and liability.

The more coverage you get, the more you pay for coverage. For a New York City apartment, your renters’ insurance costs will increase a few dollars each month with every $10,000 in personal property coverage, according to quotes obtained from Allstate — one of Insider’s top picks for renters insurance in 2022. Calculate the amount of coverage you need. you the total value of your assets.

In addition, consider the level of risk associated with your unit. For example, someone renting a single-family home with an outdoor pool might want to consider more coverage than a college student renting a 600-square-foot studio apartment off-campus.

Source: insurance.com

Other Factors Affecting Your Renter’s Insurance Cost

Although the list is not as long as

insurance for homeowners

There are some variables that affect the cost of your renters insurance.

  • Types of alarm systems installed in your home: Insurers often lower your premiums if you have security equipment in your home. Having a burglar alarm and a fire alarm can reduce the chance of loss and therefore you run less risk for your provider.
  • Dog Ownership: Owning a dog won’t necessarily increase your premiums, but dog ownership may mean you need more coverage. If your dog bites someone, renters insurance will cover your liability costs. According to the III, the average cost of a dog bite claim in 2019 was over $44,000. In this situation, your insurer may recommend getting more than the typical $20,000 or $30,000 policy, which will increase your overall insurance bill.

How to get the best price for renters insurance?

Get the best price for your renters insurance by doing your research. You can do this by requesting quotes from at least three insurers. Then look for quotes with the lowest monthly premium and the highest coverage limit. Also consider your deductible or the amount you will have to pay before your insurance coverage kicks in. The insurance with the most coverage, the lowest premiums, and the lowest deductible is probably best for you.