Average Renters Insurance Cost Per Month – Renters insurance costs an average of $179 per year, or approximately $15 per month, in the United States. This estimate is based on a policy that covers personal property for $30,000, liability for $100,000, and a $500 deductible for a hypothetical 30-year-old tenant.
Renters insurance rates vary but the national average serves as a useful starting point.
Average Renters Insurance Cost Per Month
State Average yearly cost Average monthly cost
Alabama $206 $17
Alaska $123 $10
Arizona $177 $15
Arkansas $227 $19
California $204 $17
Colorado $137 $11
Connecticut $190 $16
Delaware $155 $13
Florida $211 $18
Georgia $218 $18
Hawaii $171 $14
Idaho $141 $12
Illinois $216 $18
Indiana $188 $16
Iowa $121 $10
Kansas $188 $16
Kentucky $183 $15
Louisiana $249 $21
Maine $168 $14
Maryland $179 $15
Massachusetts $200 $17
Michigan $258 $22
Minnesota $217 $18
How Renters Insurance Works
Although each insurance company approaches the calculation of renters insurance premiums in a slightly different manner, the most common factors that could affect your premium are listed below.
Where you live: Renters insurance is likely to cost you more if you live in an area that is prone to natural disasters like tornadoes or wildfires. If there is no nearby fire station or hydrant or your neighborhood has a high crime rate, you may also pay more.
Your previous claims: If you have filed claims in the past three to five years, even if you did so with a different company, your current insurer will probably consider you to be a higher risk.
Your credit history: Renters insurance companies do not check your FICO credit score. However, in most states, they do look at your credit-based insurance score, which is a similar measure.
People with poor credit are more likely to file claims, according to studies, so insurers typically charge them more. Renters with poor credit pay nearly 60% more than renters with good credit.
California, Maryland, and Massachusetts prohibit the use of credit to set the prices of homeowners, renters, condo, and mobile home insurance.
How to Save Money on Renters Insurance
Despite the fact that only 57% of renters have insurance, you should still get one. Renters insurance is a low-cost way to safeguard your possessions from accidental damage and theft.
The most effective way to get a good deal on renters insurance is by investigating accessible limits and contrasting statements and then track down the least expensive organization.
You can get discounts from renters insurance companies, but they rarely offer many. On the other hand, picking a business that provides discounts for which you are easily eligible can help you save money. Discounts on renters insurance include the following:
- Discounts for bundles;
- Discounts for claims-free coverage;
- Discounts for home security;
- Discounts for online purchases and payments.
To make sure you get the best rate possible, compare quotes from multiple businesses.
How much coverage do you require from renters insurance?
Personal property values are frequently underestimated by renters. You should be honest with yourself about the value of your possessions and the cost of replacing them, even if it means paying a slightly higher monthly premium.
While choosing an insurance contract and settling on policy, make certain to inquire as to whether the individual property policy is ACV or RCV. Policies with an actual cash value reimburse you for the value of your property.
For expensive items like jewelry, you may need to purchase additional coverage in some instances. If you need more coverage, most renters insurance policies let you add it.
To find out how much renters insurance will cost, just enter some information about your home, your belongings, and any additional coverage you want.
The various protections for a renters insurance policy, and the things you will have to consider while working out the expense, include:
- How much your possessions are worth. Find out how much it would cost to fix or replace all of your personal belongings by adding them up. That will provide you with a thought of how much policy you will need. Include all of your large and expensive possessions, including clothing and electronics, in your packing. Managing a home inventory from your phone is a simple way to keep track of everything and add up the costs.
Note: Try not to incorporate your vehicle, as your auto insurance will cover harms to it. Additionally, assuming you lease, your property manager’s insurance will safeguard the actual structure. Your possessions are all you need to worry about.
- Liability and medical coverage: On or off your property, if someone gets hurt, you could be responsible for their medical expenses or they could sue you for other damages. Tenants protection can shield you from risk which can rapidly add up.(Though it will not safeguard you against harms from auto crashes — that is what vehicle insurance is for.)
- Coverage for loss of use. Your renters policy will cover the cost of moving if you have to stay in a hotel for a while due to damage to your home.
Your deductible should also be taken into consideration. The deductible is the amount you want to pay before your insurance kicks in. Deductibles for renters insurance usually range from $250 to $1,000. A higher deductible results in marginally lower monthly expenses, and vice versa.
How is the cost of renters insurance calculated?
A few other factors influence the cost of a renters insurance policy in addition to the ones listed above.
The first are any endorsements, riders, or floaters you add to your policy. These enable you to personalize the policy usually by increasing the coverage limits for particular item categories. For instance, your policy could cover $2,500 worth of hardware, so assuming both your TV and PC are harmed, you would be paying more than you expected for the two of them. Additionally, you may be required to schedule individual high-value items such as an engagement ring to cover them. Purchasing extra coverage will increase the cost of the policy.
Additionally, you must be aware of your policy’s type. Replacement cost coverage will pay whatever amount it takes to replace or fix a thing in view of its unique worth.
A policy with an actual cash value will pay out based on the current value of an item, taking into account depreciation (for example, if you paid $1,000 for your television five years ago, you may only receive $500 today). Although they offer more protection, replacement cost policies are more expensive than actual cash value policies.
Last but not least, look for deals that offer discounts. If you have security features like burglary alarms, your insurance company may offer you a discount or a multi-policy discount if you bundle your auto and renters policies with them.
Regardless of how much coverage you want or the limits you get, renters insurance is still moderately reasonable. You can get coverage worth several hundreds of thousands of dollars for less than $200 annually at the national average premium of around $16.
One last thing to think about is whether you need coverage for your belongings in case of an incident that is not covered by your renter’s insurance. Flood damage, for instance, will not be covered, and earthquake insurance will cost extra. Read your policy carefully to find out what your insurance covers and does not cover, and then decide if you will need any additional policies.
Which is the best Renters Insurance Carrier for you?
That relies upon your individual situation and requirements. Although each person will have their own set of criteria, some things to keep in mind are:
- You could go with a well-known brand like Progressive, State Farm, Geico, or Liberty Mutual.
- You can choose to work with a company whose insurance policy already exists.
- You can pick the company based on how much coverage costs.
- You might pick one based on the kind of policy they offer or how affordable renters insurance is in your area.
Additional Coverages you could require
Notwithstanding the most common parts of renters insurance — individual property and risk coverage — renters insurance agency frequently give extra coverage. When figuring out how much renters insurance will cost you, you should take into account which of these features are included in your standard policy and which may require an additional fee.
Here are the extra and optional coverages accessible from four top renters insurance service providers: State Farm, Erie, Lemonade, and Allstate
What it entails?
|Medical payments to others||Pays for medical bills if visitors are hurt on your property||Allstate, Lemonade, State Farm|
|Coverage for Earthquake||Covers damage to your properties which are caused by earthquakes||State Farm|
|Coverage for Flood||Covers damage to your properties caused by flood||Lemonade, State Farm|
|Loss of use||Caters for hotel and living expenses bills if your apartment is uninhabitable||Erie, Lemonade, State Farm|
|Coverage for Valuable items||Caters for replacement of valuable items that are not fully covered in your renters insurance policy||Erie, Lemonade, State Farm|
|Coverage for Identity theft||Caters for costs associated with having your identity stolen such as fraudulent bills.||Allstate, State Farm|