The average cost of renters insurance

• The average renter's insurance policy costs $14.90 per month, or $179 per year.
• But, the price you'll pay for your policy varies by where you live and the coverage amount.
• In general, the more coverage you buy, the more expensive your insurance will be. 
• Policygenius can help you compare renters insurance policies to find the right coverage for you, at the right price »

The average cost of renters insurance in the US is about $14.90 per month, according to data from the Insurance Information Institute. The average renter can expect to pay about $179 per year in total for coverage. 

Renters insurance is good to have, since it protects you where your landlord's coverage doesn't. Your renters insurance protects all of the items you bring into your new rented home or apartment, and your own personal liability if something happens in your home for which you're held responsible.

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

The type of home you live in won't play a big role in your renters insurance. A rented home won't cost much more than a studio apartment, largely because this insurance policy simply covers you and your belongings. But, your renter's insurance costs will vary based on where you live, and how much coverage you need. 

How much is renters insurance in my state?

According to data from the Insurance Information Institute, the state and region where you live in plays a big role in the amount you'll pay for renters insurance.

For example, states in the southeast are the most expensive to insure. Mississippi, Alabama, Louisiana, and Texas are some of the most expensive states for renters insurance. They're also low-lying areas where flooding and hurricanes are common. Insurance companies see them as higher risk, and charge more for renters insurance in these areas.

In contrast, South Dakota and Wisconsin have some of the lowest renters insurance prices. These states have relatively calm weather patterns, and are seen as lower-risk.

Here's what the average renter paid for coverage in each state in 2018, according to data from III.

States with the most expensive renters insurance

States with the cheapest renters insurance

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Average renters insurance price by coverage amount

Generally, renters insurance policies only cover up to a certain amount. Policies generally start at $20,000 or $30,000 worth of coverage.

While that might sound like more than you need to replace your own property, remember that renter's insurance could also cover your liability, or the amount you could be held responsible for in a lawsuit. If something happens in your home, you could be held responsible for paying damages. 

The more coverage you get, the more you'll pay for coverage. According to quotes obtained from Allstate — one of Business Insider's top picks for renters insurance in 2021— for an apartment in New York City, your renters insurance cost will go up a few dollars each month with every $10,000 worth of personal property coverage. 

The more coverage you get, the more you'll pay in premiums each month. To understand how much coverage you'll need, you'll want to calculate the total value of the items you own.

You might also want to consider how much risk is associated with your home. For example, someone renting a single family home with a swimming pool outside might want to consider a higher amount of coverage than a college student renting a 600-square-foot studio apartment off campus.

Other factors that influence your renters insurance costs

Types of alarm systems installed in your home

Your renters insurance company will consider several different aspects of your rented home, like its age and construction. It will also consider how your home can alert you to danger — having a burglar alarm and a fire alarm installed can reduce the chance that your items are damaged in the first place, and in turn, the risk to your insurance company. Often, insurers will give discounts for renters with these types of alarms.

Dog ownership

Owning a dog might not make your insurance directly more expensive, but dog ownership might mean you need more coverage. 

If your dog bites someone, your renters insurance could help to cover the costs. According to the III, the average cost of a dog bite claim was over $44,000 in 2019. In this situation, your insurer might recommend that you get more than the typical $20,000 or $30,000 policy, making renters insurance a bit more expensive each month.

How to get the best price on renters insurance

If you're looking for renters insurance, guarantee yourself the best price by doing your research. Collect quotes from several different insurers, and look for the quote with the lowest monthly premium, or cost for coverage, and the highest coverage limit. Also consider the deductible, or the amount you'll be responsible to pay before your insurance coverage kicks in.

Note that if you have roommates, your renters insurance will not cover roommates— they need their own policies.

The insurance policy with the most coverage, the smallest premiums, and the lowest deductible is probably the best policy for you. 

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