Renters insurance costs an average of $185 a year, according to the National Association of Insurance Commissioners (NAIC) 2018 home insurance report. The average renters insurance cost varies based on where you live and the amount of coverage you buy. The least expensive states for renters insurance are Iowa and Nebraska at an average of $141 per year, and the most expensive is Mississippi at an average of $275 per year.
How much does renters insurance cost per month?
Renters insurance costs an average of $15.42 per month, according to the NAIC. Rates will vary by location and coverage amount. For example, $30,000 worth of coverage in California costs an average of $16.25 a month while renters insurance in Texas costs an average of $20.08 a month for the same amount of coverage.
Should I buy renters insurance?
You should buy renters insurance if you could not easily afford to replace all of your belongings after a fire, tornado or other disaster. Renters insurance also provides important coverage for theft, liability in case someone gets hurt and sues you, and additional living expenses if you can’t live in your damaged apartment. Keep in mind, a landlord’s insurance covers the building structure but none of your belongings.
Read more: What does renters insurance cover?
How much renters insurance do you need?
A good rule of thumb is to buy enough insurance to replace all of your possessions in a worst-case scenario, like a devastating fire. Allstate estimates the average value of a renter’s belongings at about $30,000, based on a standard two-room apartment. That’s a good starting point, but to avoid buying too much or too little insurance, it’s best to calculate how much you’ll need to replace your specific possessions.
You can do that by:
- Making a home inventory, which is a log of what you own and the estimated cost to replace each item.
- Using an online calculator such as Allstate’s What’s your stuff worth? estimator.
Make sure you buy sufficient coverage when you get renters insurance quotes. Renters insurance companies typically offer two ways to get reimbursed if you have a claim:
- Replacement cost, which reimburses you for the cost of new items, up to your coverage limit. This is the better choice as a financial safety net.
- Actual cash value, which reimburses you for the depreciated value of belongings, not new items, up to your coverage limit.
An “actual cash value” renters insurance policy generally costs less because claim checks will be smaller. However, with a replacement cost policy you won’t have to worry about spending your own money to make up the difference between depreciated value and buying new stuff.
How much does $100K in renters insurance cost?
The average nationwide cost for renters insurance for $100,000 worth of coverage is $475 a year, according to the NAIC. Below are more average costs for other amounts of renters insurance.
What factors into renters insurance rates?
Renters insurance rates are based on several factors, including:
- The coverage amount you buy.
- The deductible chosen (that’s the amount deducted from a claims check), such as $500 or $1,000.
- Whether you choose replacement cost or actual cash value coverage.
- Where you live.
- Your credit, except in states that ban the use of credit in renters insurance.
- Your past claims on renters or homeowners insurance.
How can I save money on renters insurance?
- Buy both auto and renters insurance from the same company for a “bundling” discount.
- Get renters insurance quotes from a few companies to compare prices.
- Choose a higher deductible, which means lower premiums because you’ll get less in the event you make a claim.
- Ask your insurance agent about discounts, such savings for having fire or burglar alarms, or using automatic payments.
Average renters insurance cost by state
|State||Average annual renters insurance cost|
|District of Columbia||$163|
|Source: National Association of Insurance Commissioners 2018 home insurance report. Used with permission.|