How much is renters insurance in 2021?

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Whether you live in a high-value rental home or a cozy apartment, renters insurance may be a good purchase. The average cost of renters insurance is $509 per year and it provides you with many similar protections as a comparably more expensive homeowners insurance policy, such as coverage for personal property, loss of use and liability.

Renters insurance could benefit you following unexpected occurrences such as fire, theft, vandalism and more. Though policy costs will vary based on the provider, location and other factors, for around $42 a month, renters insurance could be considered relatively inexpensive compared to how much you might lose if something goes wrong.

Average cost of renters insurance

To determine how much a renters insurance policy might cost, knowing the average rates in your state can be a good first step. Where you live can impact everything from the value of your personal property to what types of losses are more likely to occur.

Renters insurance cost by state

Although renters insurance is generally affordable, premiums can still vary greatly from state to state based on factors like crime rate and the likelihood of certain weather claims that could damage your personal property. The table below shows the average cost of renters insurance by state, including both annual and monthly premiums. These premiums are for a renters insurance policy with $25,000 in personal property coverage.

State Average annual cost Average monthly cost
Alabama $672 $56
Alaska $404 $34
Arizona $554 $46
Arkansas $637 $53
California $564 $47
Colorado $614 $51
Connecticut $510 $42
Delaware $524 $44
Florida $485 $40
Georgia $478 $40
Hawaii $195 $16
Idaho $289 $24
Illinois $681 $57
Indiana $524 $44
Iowa $577 $48
Kansas $890 $74
Kentucky $746 $62
Louisiana $561 $47
Maine $286 $24
Maryland $564 $47
Massachusetts $619 $52
Michigan $499 $42
Minnesota $644 $54
Mississippi $504 $42
Missouri $522 $44
Montana $517 $43
Nebraska $958 $80
Nevada $327 $27
New Hampshire $311 $26
New Jersey $309 $26
New Mexico $524 $44
New York $348 $29
North Carolina $391 $33
North Dakota $620 $52
Ohio $559 $47
Oklahoma $1,040 $87
Oregon $332 $28
Pennsylvania $293 $24
Rhode Island $536 $45
South Carolina $449 $37
South Dakota $721 $60
Tennessee $552 $46
Texas $509 $42
Utah $294 $24
Vermont $248 $21
Virginia $437 $36
Washington $375 $31
Washington, D.C. $325 $27
West Virginia $618 $51
Wisconsin $382 $32
Wyoming $279 $23

Depending on where you live, the quotes you receive for renters insurance could be higher or lower than the national average of $509 per year. Each state has unique factors that may impact renters insurance premiums. For example, Oklahoma renters pay an average of $1,040 a year. The higher premium could be linked to an increased risk of weather-related losses to your items in this state.

The most expensive states for renters insurance

Whether it is due to high populations, high cost of living or expensive common causes of loss, the following states have the highest average premiums for renters insurance.

State Average annual cost Average monthly cost
Oklahoma $1,040 $87
Nebraska $958 $80
Kansas $890 $74
Kentucky $746 $62
South Dakota $721 $60

Despite some states having higher renters insurance premiums than the national average, the overall value for the cost is still notably more affordable than not having coverage and potentially being left with out-of-pocket expenses after a loss. Keep in mind that the rates you pay will also depend on your personal information such as your credit tier, coverages you choose and your prior claims history. Comparing quotes from several different renters insurance companies might help you to find a policy at a lower price.

The cheapest states for renters insurance

The following five states have the cheapest renters insurance premiums in the U.S. Renters in these states pay less than $25 per month, on average, for coverage.

State Average annual cost Average monthly cost
Hawaii $195 $16
Vermont $248 $21
Wyoming $279 $23
Maine $286 $24
Idaho $289 $24

Cheap average rates do not always signify value. Be sure to review your renters insurance quotes carefully to check that you are getting the coverage you need.

Factors that influence the cost of renters insurance

There are many factors that could impact the cost of your renters insurance policy. Some of these costs may be within your control while others may not be.

For example, one of the most important benefits of having renters insurance is the ability to replace your personal items due to a covered claim. Personal property on a renters insurance policy is generally covered in one of two ways. Replacement cost value (RCV) policies will pay you the amount that it would cost to replace your damaged property with new property of similar quality. On the other hand, an actual cash value (ACV) policy replaces your personal property at its depreciated value. ACV policies are generally cheaper than RCV policies because they reimburse you for lower amounts.

Other ways that may help manage the cost of your policy include choosing whether you want a low or high deductible, paying for your premium in full versus having a monthly premium and applying common discounts, like multi-policy and safety equipment discounts. Factors that are generally out of your control include the location of your rental and your area’s common causes of loss.

How to save on renters insurance

Although renters insurance is typically less expensive than homeowners insurance, there are still ways to save. Understanding the rating factors of your renters insurance policy that are within your control may help you to find savings opportunities.

Bundle your other insurance policies

If you have other policies like auto or life insurance, you could consider bundling them with one insurer. This might qualify you for a discount on all of your insurance policies.

Choose a cash value policy

The main difference between an actual cash value (ACV) policy and a replacement cost value (RCV) policy is how your personal property is covered — at its depreciated value or its replacement cost. RCV policies generally cost more money because many of your items, like your TV and laptop, are likely to be more expensive to replace at market value. Because ACV policies pay for your items at their depreciated value, you receive less money for their replacement if you file a claim, but may also pay lower insurance premiums.

Taking inventory of the entire replacement cost of your items could help determine which policy settlement type is best for you.

Increase your deductible

Your policy deductible is the amount you pay out of pocket in the event of a claim. Generally, the higher your deductible, the cheaper your renters insurance policy will be. Increasing your deductible may lower your premiums, but be sure to choose a level that you can reasonably afford to pay if you file a claim.

Install safety equipment

Adding safety and security equipment, like smoke detectors or a security system, may qualify you for a discount. Security equipment might deter thieves and smoke alarms can notify you of potentially dangerous situations. Some insurers reward you for these preventive measures by offering discounts.

Adjust your payment method

Paying your annual premium in full may earn you a discount with insurers, but it could also save you from having to manage another monthly bill or pay billing fees. Talk with your insurer to see if this discount is an option.

Review your personal property coverage limit

Another aspect of your renters insurance policy that you can control is the dollar amount you choose to cover your personal property for. Reducing the amount will likely reduce your premium. Before reducing your coverage, you may want to take the time to consider if you have included enough to cover the cost of replacing your personal property.

Frequently asked questions

Do you need renters insurance?

While renters insurance is not legally required, it may be required by your landlord or rental complex. It could also benefit you by providing coverage for your personal belongings. A landlord’s insurance policy will typically cover losses impacting the actual structure of your rental building, but you are responsible for any damage occurring to your personal property, as well as for the liability arising from any incidents that cause injury to your guests. Some renters insurance companies even have additional coverage available for your pets.

Is the cost of renters insurance worth it?

Renters insurance is about $42 per month and is designed to help protect you from financial stress if your items are damaged or someone is injured at your property. Many policies also include loss of use coverage to cover temporary living expenses if your rental becomes uninhabitable due to a covered claim. To avoid being left with out-of-pocket expenses after an unexpected event, renters insurance may be an important piece of your financial planning.

What does your renters insurance policy not cover?

Renters insurance policies typically exclude damage resulting from earthquakes and floods. However, riders and additional insurance policies may be able to cover these events. Speak with an insurance carrier about what coverage options are available. Other scenarios, like a bed bug infestation and damage to property belonging to your roommate, may also be excluded from most standard policies.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female renters with a clean claim history, good credit and the following coverage limits:

  • Coverage C, Personal Property: $25,000
  • Coverage D, Loss of Use: $5,000
  • Coverage E, Liability: $100,000
  • Coverage F, Medical Payments: $1,000

The renters also have a $500 deductible.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.