The average annual premium for renters insurance is just $170, according to the Insurance Information Institute (III). Avoid falling under the misconception that your landlord will be financially responsible if your unit is damaged or someone is injured while in your home.
Most renters insurance policies include coverage for personal property, personal liability, and additional living expenses.
Average Renters Insurance Cost in 2025
National Average Renters Insurance Cost
The average cost of renters insurance in the US is about $15 per month or $170 a year, according to data from the Insurance Information Institute (III) for 2021, the most recent year available.
Renters Insurance Cost by State
Here's what the average renter paid for coverage in each state in 2021, according to data from III.
| State | Annual average |
| Alabama | $222 |
| Alaska | $184 |
| Arizona | $160 |
| Arkansas | $206 |
| California | $177 |
| Colorado | $159 |
| Connecticut | $171 |
| Delaware | $144 |
| D.C. | $150 |
| Florida | $175 |
| Georgia | $205 |
| Hawaii | $172 |
| Idaho | $146 |
| Illinois | $154 |
| Indiana | $162 |
| Iowa | $135 |
| Kansas | $159 |
| Kentucky | $156 |
| Louisiana | $243 |
| Maine | $146 |
| Maryland | $152 |
| Massachusetts | $168 |
| Michigan | $179 |
| Minnesota | $132 |
| Mississippi | $258 |
| Missouri | $171 |
| Montana | $154 |
| Nebraska | $141 |
| Nevada | $175 |
| New Hampshire | $145 |
| New Jersey | $151 |
| New Mexico | $175 |
| New York | $164 |
| North Carolina | $164 |
| North Dakota | $114 |
| Ohio | $160 |
| Oklahoma | $221 |
| Oregon | $150 |
| Pennsylvania | $147 |
| Rhode Island | $178 |
| South Carolina | $184 |
| South Dakota | $117 |
| Tennessee | $183 |
| Texas | $204 |
| Utah | $145 |
| Vermont | $150 |
| Virginia | $151 |
| Washington | $159 |
| West Virginia | $170 |
| Wisconsin | $127 |
| Wyoming | $142 |
States with the cheapest renters insurance
These are the states with the cheapest annual premium average.
| Rank | State | Annual average |
| 50 | North Dakota | $114 |
| 49 | South Dakota | $117 |
| 48 | Wisconsin | $127 |
| 47 | Minnesota | $132 |
| 46 | Iowa | $135 |
States with the most expensive renters insurance
These are the states with the most expensive annual premium average.
| Rank | State | Annual average |
| 1 | Mississippi | $258 |
| 2 | Louisiana | $243 |
| 3 | Alabama | $222 |
| 4 | Oklahoma | $221 |
| 5 | Arkansas | $206 |
Cost Differences Between Apartments, Condos, and Houses
The type of home you live in won't play a large role in the cost of your renters insurance primarily because this insurance policy covers you and your belongings. However, your renters insurance costs will vary based on your location and how much coverage you need.
Factors That Affect Renters Insurance Rates
How Location Impacts Your Renters Insurance Premium
Where you live plays a significant role in the amount you'll pay for renters insurance, according to data from the Insurance Information Institute.
You'll pay the most in the Southeast. 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, as a result, will charge more in these areas.
In contrast, South Dakota and Wisconsin have some of the lowest renters insurance premiums. These states have relatively calm weather patterns.
The Role of Coverage Limits & Deductibles in Pricing
By opting for lower coverage amounts or a higher deductible, you can lower your renters insurance premium. If you don’t have expensive things in your home or you keep an emergency fund that you can use towards replacement costs, then choosing a lower coverage amount might be a good idea.
Picking a higher deductible means that you’re willing to pay more out of pocket in the event of a covered loss. So, especially if you increase your deductible, make sure you can afford to pay your entire deductible in case something goes wrong.
How Your Credit Score & Claims History Affect Rates
Having a low credit score and multiple recent claims can increase your renters insurance rates. A poor credit score signals to an insurer that you aren’t likely to pay your bills on time.
Similarly, your claims history gives an insurer an idea of how likely you are to file a claim. In other words, the insurance provider may view you as a higher risk if you recently filed several claims, so they’ll charge you more.
How to Calculate Renters Insurance Costs
What Goes into a Renters Insurance Quote?
Insurance providers take several factors into account when it comes to calculating renters insurance quotes. In general, rates are determined by the level of risk the insurer expects to take on.
Here’s a list of common factors that insurance companies consider when determining renters insurance rates:
- Location, including ZIP code
- Value of your belongings
- Liability coverage
- Deductible amount
- Size of the unit
- Security features
How to Use a Renters Insurance Calculator
Before using a renters insurance calculator, you’ll want to take inventory of everything you own inside your unit. This inventory should include everything from everyday items like kitchen utensils and bedding to high-value items like jewelry and electronics.
Then, you’ll need to determine how much it will cost to replace all of those items. This will give you an idea of how much coverage you need.
Once you complete an inventory of your possessions and determine replacement costs, you’ll need to input information about your home’s location into the calculator. Location greatly affects the cost of renters insurance.
After inputting your location and the level of coverage you’re looking for, the renters insurance calculator should be able to give you an estimate of how much is renters insurance.
What Level of Coverage Do You Need?
The more coverage you get, the more you'll pay for coverage. 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, according to quotes obtained from Allstate — one of Insider's top picks for the best renters insurance companies. To estimate the amount of coverage you'll need, calculate the total value of your belongings.
Additionally, consider the level of risk associated with your unit. For example, someone renting a single-family unit with a swimming pool outside might want to consider more coverage than a college student renting a 600-square-foot studio apartment off-campus.
Renters Insurance Rates by Coverage Type
Liability-Only Renters Insurance vs. Full Coverage
Generally, standard renters insurance policies will cover a certain amount for your personal property and liability. However, if you opt for a liability-only policy, then your belongings will not be protected.
While the cost of liability-only insurance is often less than if you were to purchase a standard renters insurance policy, you are assuming more risk. In addition, liability-only renters insurance may also be more challenging to find than standard renters insurance, and it may not meet the requirements set by your landlord.
Average renters insurance price by coverage amount
Here’s a list of the average price for renters insurance broken down by coverage amount, assuming you have a $500 deductible.
| Coverage amount | Cost |
| $20,000 property/$100,000 liability | $16 |
| $20,000 property/$300,000 liability | $17 |
| $40,000 property/$100,000 liability | $22 |
| $40,000 property/$300,000 liability | $24 |
| $60,000 property/$100,000 liability | $29 |
| $60,000 property/$300,000 liability | $30 |
Source: Insurance.com
How to Lower Your Renters Insurance Costs
The Best Discounts for Renters Insurance
There are several things you can do to help lower the cost of renters insurance. Here are ways you can get more affordable renters insurance:
- Bundle your renters insurance with auto insurance
- Choose a lower coverage amount
- Choose a higher deductible
- Set up autopay
- Add a home security system
- Shop around and compare quotes from at least three insurers
How Bundling Renters & Auto Insurance Can Save You Money
A popular discount that many insurers offer is a multi-policy discount. A multi-policy discount, also known as insurance bundling, is when you purchase multiple insurance policies from one insurance company.
You can ask your current insurance provider if they offer discounts for bundling renters and auto insurance, or you can request quotes from other providers that do.
Although you can get a discount for bundling your renters and auto insurance, it doesn’t necessarily mean that it will be the best value. It’s still important to compare quotes from multiple insurers to find the best deals.
Why Increasing Your Deductible Can Reduce Premiums
A deductible is the maximum amount you agree to pay out of pocket for a covered loss before your insurance chips in. Choosing a higher deductible can reduce your renters insurance premium, because it means you’ll take on more of the financial burden in the event of a claim.
However, don’t forget to set aside enough money to pay your deductible if you do need to file a claim.
Other factors that influence your renters insurance costs
Although the list is not as long as homeowners insurance, there are a few variables that influence the cost of your renters insurance policy.
- Types of alarm systems installed in your home: Insurers will often reduce your premiums if you have home safety devices. Having a burglar alarm and a fire alarm installed can reduce the likelihood of a loss, and in turn, you are less of a risk to your provider.
- Dog ownership: Owning a dog won't necessarily increase your premiums, but dog ownership might 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 was over $44,000 in 2019. In this situation, your insurer might recommend getting more than the typical $20,000 or $30,000 policy, which will increase your overall insurance bill.
How to Compare Renters Insurance Quotes
What to Look for in a Renters Insurance Policy
Get the best price on your renters insurance policy by doing your research. You can do so by collecting 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'll be responsible for paying before your insurance coverage kicks in. The insurance policy with the most coverage, the smallest premiums, and the lowest deductible is probably the best for you.
The Best Renters Insurance Companies for Affordable Coverage
The best renters insurance policy for you will depend on the amount of coverage you need and your budget. Here are our picks for the top affordable renters insurance companies:
- Lemonade renters insurance: Lemonade is known for offering low rates and being an easy-to-use online platform.
- Erie renters insurance: Erie offers many coverage options and has discounts available based on your age and if you have a home alarm system.
- State Farm renters insurance: State Farm offers renters insurance in all 50 states and has discounts available for bundling policies.
How to Get a Renters Insurance Quote Online
Before you request an online quote for renters insurance, make sure you understand how much coverage you need. You can do this by taking inventory of everything in your home and calculating the cost to replace your belongings. Once you have an idea of how much coverage you’ll need, you can follow these steps to get a renters insurance quote online:
- Decide how you’re going to gather quotes. It’s a good idea to get at least three quotes from multiple providers to do a comparison and find the best deals. You can request quotes directly from insurance companies, use an online marketplace, or contact an insurance broker.
- Request quotes. You’ll likely need to provide some basic information about yourself, your unit, your coverage needs, and your location.
- Compare renters insurance quotes. Some insurers will send you a quote within a few minutes, whereas others may take a few days. Once you receive quotes from enough providers, you can compare coverage and choose the insurer that best fits your needs.
What is Renters Insurance (HO-4)?
Renters insurance, also known as HO-4 insurance, is a specific type of insurance designed for tenants. Renters insurance covers you and your belongings in the event of covered damages or a loss by providing protection for your personal possessions, liability, and additional living expenses.
What Renters Insurance Covers
Renters insurance protects you where your landlord's coverage doesn't. Your renters insurance covers all of the items you bring into your newly rented home or apartment. It also protects you from liability if someone is injured in your unit.
Renters insurance usually also includes coverage for additional expenses or “loss of use.” This means that if your home becomes uninhabitable, your policy will pay for a temporary alternative living situation.
Why Renters Insurance is Important
While renters insurance won't help to rebuild the structure if it burns down — that's what your landlord's insurance is for — it will protect you and your property. Additionally, many landlords or leasing companies will require renters insurance as a condition of your lease.
How Renters Insurance Protects Your Belongings & Liability
Your rental insurance policy will typically cover the cost of repairing or replacing your personal belongings up to a certain limit. Personal belongings covered by renters insurance often include clothes, furniture, electronics, and appliances.
Renters insurance liability coverage usually includes bodily injury or property damage that you or your family cause to others in your home. Some policies also include damage caused by pets.
Compare Renters Insurance Options
FAQs
How much does renters insurance cost on average?
The national average cost of renters insurance is about $170 annually, or just under $15 a month. Pricing varies by location and coverage.
What factors determine my renters insurance premium?
Factors such as location (your ZIP code), coverage amount, deductible, credit score, and claims history will determine your renters insurance premium.
Can I lower my renters insurance cost?
Yes, you can lower your renters insurance cost by bundling renters insurance with auto insurance, increasing your deductible, and adding a security system.
Does renters insurance cost more in certain states?
Yes, renters insurance is often the most expensive in states like Mississippi and Louisiana, and the least expensive is in North Dakota and South Dakota.
Where can I compare renters insurance rates?
You can compare renters insurance rates using online comparison tools like Insurify and Zebra, or you can get quotes directly from insurance company websites.
