Renters insurance costs an average of $180 a year, according to the National Association of Insurance Commissioners (NAIC) 2019 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 $120 per year, and the most expensive is Mississippi at an average of $258 per year.

Renters-Insuarance-In-US

Why should I buy renters insurance?

Renters insurance can 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. If you can’t afford to replace everything that is yours, rental insurance is a good idea.

Read more: What does renters insurance cover?

How much does renters insurance cost per month?

Renters insurance costs an average of $15 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 $15.17 a month while renters insurance in Texas costs an average of $21.50 a month for the same amount of coverage.

Below are the average costs per month for different levels of coverage in the U.S.

Coverage Cost per month
Less than $25K $12.65
$25-50K $15.51
$50-75K $19.67
$75-100K $25.08
$100K+ $37.50
Source: National Association of Insurance Commissioners 2019 home insurance report.

How much renters insurance do I 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. $30,000 is also the average coverage of rental insurance according to the NAIC. 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:

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.

What else factors into renters insurance rates?

Renters insurance rates are based on several factors, including:

  • The coverage amount you buy.
  • The deductible chosen (your share of the cost that's deducted from a claim), 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 (2020)

State Average annual renters insurance cost
Alabama $235
Alaska $166
Arizona $178
Arkansas $212
California $182
Colorado $159
Connecticut $192
Delaware $159
District of Columbia $158
Florida $188
Georgia $219
Hawaii $185
Idaho $153
Illinois $167
Indiana $174
Iowa $144
Kansas $172
Kentucky $168
Louisiana $235
Maine $149
Maryland $161
Massachusetts $194
Michigan $182
Minnesota $140
Mississippi $258
Missouri $173
Montana $146
Nebraska $143
Nevada $178
New Hampshire $149
New Jersey $165
New Mexico $187
New York $194
North Carolina $157
North Dakota $120
Ohio $175
Oklahoma $236
Oregon $163
Pennsylvania $158
Rhode Island $182
South Carolina $188
South Dakota $123
Tennessee $199
Texas $232
Utah $151
Vermont $155
Virginia $152
Washington $163
West Virginia $188
Wisconsin $134
Wyoming $147
Source: National Association of Insurance Commissioners 2019 home insurance report.