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How Much Is Renters Insurance (Explained: All You Need To Know)

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What is included in your renters insurance rates?

How is your premium determined?

Keep reading as I have gathered exactly the information that you need!

Let me explain to you how much should renters insurance cost and how it works!

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Let’s get started!

How Much Is Renters Insurance

According to Nerdwallet, the average renters insurance cost in the United States is $168 per year (or $14.00 per month) based on the assumption that you have a 30-year old tenant, $30,000 of property coverage, $100,000 liability coverage, and $500 deductible.

However, this rate reflects the average renters insurance cost for the United States as a nation.

The costs of renters insurance can vary depending on several variables such as where you live, your age, the coverage that you need, and your claim history.

According to QuoteWizard, the national average renters insurance is $179 ($14.91 per year) based on the data they sourced from the National Association of Insurance Commissioners.

Based on this data, we can situate the national average to be between $168 and $179.

How Much Is Renters Insurance Per State

There are certain states where the cost of renters insurance is well above the national average while other states are below.

For example, in the state of Louisiana, your average renters insurance can cost you $262 per year ($22 per month) whereas in Wyoming your average renters insurance cost is $101 per year ($8 per month).

Based on Nerdwallet.com’s assessment, the top five most expensive states for renters insurance are:

  • Louisiana ($262)
  • Georgia ($243)
  • Mississippi ($228)
  • Kansas ($225)
  • Alabama ($222)

The top five cheapest states for renters insurance are:

  • Wyoming ($101)
  • Iowa ($110)
  • Vermont ($110)
  • North Dakota ($116)
  • Pennsylvania ($116)

QuoteWizard indicates that Mississippi has the highest renters insurance cost at $252 per year or $21 per month whereas North Dakota and South Dakota have the cheapest average renters insurance at $126 and $127 per year.

How Much Is Renters Insurance Per City

If you want to drill down into the cost of renters insurance per city, based on Nerdwallet’s data, you’ll find that Atlanta offers the most expensive renters insurance at $269 per year (equivalent to $22 per month) and Columbus is the cheapest city at $137 per year (equivalent to $11 per month).

What Affects Your Renters Insurance Premiums

Insurance companies take into account various factors to determine the appropriate rate to charge for their renters insurance premiums.

Although it’s not feasible to provide you with a cookie-cutter formula on how much you will specifically have to pay, there are certain variables that will certainly play an important role in the amount of premium charges you will be required to pay.

Here are common factors that will affect your renters insurance cost:

  • Personal property coverage
  • Place of residence
  • Prior claims
  • Credit history
  • Domestic pets
  • Deductibles
  • Type of coverage

Let’s look at each of these factors quickly.

Personal Property Coverage

The premium that you’ll pay will depend on how much personal property you would like to insure.

The more property you want to insure, the more your premiums will go up.

For example, a person getting personal property coverage for $50,000 will pay more premiums than someone who is covering $10,000 of property.

Place of Residence

Where you live will also have an important role to play in the amount of premium you will be asked to pay for renters insurance.

If you live in places where there’s a greater risk for natural disasters, you will pay more premium than places that statistically have very few.

For example, if you live in a place where you are exposed to hurricanes, tornadoes, or wildfires, you should expect to write bigger checks to your insurance company.

Also, depending on the crime statistics in your region, you may also pay more or less premiums.

The higher the crime rate in your area, the more expensive you’ll end up paying for your coverage.

Prior Claims

Those who have no prior claims will benefit from lower renters insurance premiums than those that have already made claims in the past.

If you have filed a claim within the past three to five years, you should expect to pay more for your coverage as you represent a greater risk to your insurance provider.

Credit History

Your credit history can have an impact on your renters insurance cost.

Although renters insurance companies do not look up your financial credit score (life FICO score), they will look up a similar “insurance” credit score that measures your insurance creditworthiness (this is your CLUE report).

The better your insurance creditworthiness, the more you can save on your premiums (and vice versa).

Claims that you make on your policy can remain in your CLUE report for up to seven years.

As such, insurance companies may consider your credit score to assess their risk and establish an insurance premium rate for you.

Domestic Pets

If you own a dog, your renters insurance company may either charge you more premiums due to the liability exposure for dog bites or even refuse the provide you coverage at all.

In fact, there are certain types of breeds that the insurance companies will accept to cover at a higher premium rate and other breeds that are simply refused coverage as they are too risky.

Deductibles

Another key variable affecting how much you’ll pay for renters insurance is the amount of your renters insurance deductibles.

The lower your deductible, the more premium you’ll pay.

The higher your deductible, the less premium that you will pay.

Type of Coverage

The type of coverage you take can also have an impact on your total yearly (or monthly) costs.

For instance, if you take an actual cash value renters insurance, you are getting protection for the value of your belongings at the time you make the claim.

On the other hand, if you have a replacement cost renters insurance, you will be covered for the cost of repairing or replacing your belongings.

Since the insurance company may have to make a larger payout with a replacement cost renters insurance, it will also charge more for its premiums compared to an actual cash value policy.

What Does The Renters Insurance Cost Cover

Do you wonder what is included in cost of your renters insurance?

In short, you have four primary coverages that include:

  • Personal property coverage
  • Personal liability coverage
  • Medical payment coverage
  • Loss of use coverage

Personal property coverage is the coverage you need to protect what you have in your apartment such:

  • Electronics and appliances (laptop, TV, computer etc)
  • Furniture 
  • Clothing 

Personal liability coverage protects you against your civil court judgments if due to your actions or conduct, you were found to have caused damages to another.

Medical payment coverage allows you to cover the medical costs for someone getting hurt in your home or on your property (like falling on the stairs).

Finally, the loss of use coverage covers your living expenses if you are unable to live your home for a certain period of time due to damage or urgent repairs.

What Does Renters Insurance Protect You From

Typically, your renters insurance will cover you against the risk of:

  • Fire
  • Smoke damage
  • Lightning 
  • Windstorm
  • Hail
  • Theft
  • Vandalism 
  • Short-circuits 
  • Visitor injuries 
  • Certain types of water damage

On the other hand, your renters insurance will generally not cover damages resulting from:

  • Flood 
  • Earthquake
  • Pest damage
  • Sinkholes 

Tips To Lower Your Renters Insurance Cost

How can you lower your renters insurance cost?

If you want to save on your renters insurance costs, you should consider the following:

  • Shop around for the best rates
  • Consider taking renters insurance with other insurance products to benefit from multi-policy discounts
  • Do what you can to avoid having to make claims
  • Consider installing an alarm system 
  • Consider installing security devices like smoke detectors and sprinkler systems 

For example, if you combine your renters insurance with your car insurance policies, you may get further discounts.

In addition to that, it’s important that you carefully read the terms of your policy to ensure that you are getting the coverage and options that you really need.

For example, you may have some insurance providers that include inflation coverage or other types of additional coverages in your quote, be sure to only take the additional coverages that you really need.

Frequently Asked Questions

Let’s look at some of the most common and recurring questions relating to renters insurance.

Do I Need Renters Insurance

The law does not require you to have renters insurance.

However, if you are looking to rent an apartment or house to live in, your landlord may require that you obtain renters insurance as part of the rental conditions.

In the end, whether your landlord requires that you get renters insurance or not, you may want to consider getting one to protect yourself against unexpected events.

How Much Is Renters Insurance

According to the National Association of Insurance Commissioners’ survey, you are likely to pay $15 a month for a $35,000 renters insurance coverage limit.

At this price, those who are looking to rent an apartment or a home can easily include the cost of the renters insurance in their monthly budget to get peace of mind.

How To Assess The Personal Property Coverage Needed

In most cases, the main reason why people subscribe to renters insurance is to protect their personal property in their homes.

The renters insurance helps protect your personal property from damage, loss, or theft.

The best way to assess how much personal property coverage you really need is to perform an inventory of your assets.

Here is how you can do your home inventory:

  • Put together a list of your personal property
  • Indicate how much you purchased the property and how much they are worth today
  • Calculate the total purchase cost along with your total market value 
  • To that amount, add a buffer of $5,000 to get a ballpark idea of how much coverage you need 

What Is The Cheapest Renters Insurance Cost

To get the cheapest renters insurance policy, you will likely need to:

  • Take the minimum personal property coverage ($10,000)
  • Take the minimum personal liability coverage ($100,000)
  • Take the minimum coverage for medical payments to others ($1,000)
  • Choose the highest deductibles possible ($2,500 or more)

If you do all of that, you may end up having to pay as little as $5 to $8 per month.

Do I Need Additional Coverages To Renters Insurance

When you take your renters insurance, be sure to carefully read the fine print of your policy or have your insurance agent explain everything to you so you know what you’re getting.

Typically, your renters insurance policy will not cover natural disasters such as floods and earthquakes.

As a result, if you want protection against floods and earthquakes, you’ll need to consider subscribing to additional coverages.

Depending on the nature of your coverage and limits that you take, your additional coverage costs can vary.

Here are some additional coverages possible:

  • Inflation coverage
  • Increased personal liability coverage
  • Increased medical payments to others 
  • Content replacement cost 
  • Scheduled personal property (for high-valued property like jewelry, collectibles, instruments etc)
  • Electronic coverages 
  • Water and sewer backup coverage
  • Identify theft coverage 

How Much Does Renters Insurance Cost Takeaways 

So there you have it folks!

How much is renters insurance per month?

How much is renters insurance for an apartment? 

Renters insurance is a type of insurance policy that you may need if you are looking to rent an apartment, home, or property.

The good news is that you are likely not going to break the bank to pay for your premiums.

In fact, the national average for renters insurance is between $168 to $179 per year (approximately $14 to $15 a month).

The low premium charge in relation to the possible benefits that you get can be seen as money well spent.

Getting a renters insurance policy is not something that is required by law but you may see different landlords impose it as a rental condition.

Be sure to shop around and look for a renters insurance policy that suits your needs and fits your budget.

Good luck shopping!!

Let’s look at a summary of our findings.

How Much Is Renters Insurance Summary

  • Renters insurance is probably one of the least expensive insurance products available in the market having a national average of $168 to $179 per year ($14.00 to $14.91 per month)
  • Different factors affect how much you’ll need to pay such as where you live, the amount of coverage that you need, the value of your deductibles, your claims history, and more 
  • If you combine your renters insurance policy with other policies, you may benefit from additional discounts
  • You can also take different measures to reduce your premiums by installing an alarm system, sprinkler system, adding a deadbolt to your door, smoke detector and other 
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Personal property loss settlement 
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