How Much Is Renters Insurance? (2024 Rates)

For a small monthly premium, renters insurance protects your personal belongings and other assets. Renters insurance premiums vary widely from one state to the next. For example, Louisiana tenants pay $34 per month but Alaska tenants pay just $5 on average.

Your state and ZIP code play a primary role because risk factors where you live can lead to higher average rates. The area’s vulnerability to natural disasters and the rate of crime — particularly theft — influence how much you pay for renters insurance. The cost of your personal policy will also depend on your coverage limits and type, deductible, insurer, and safety features.^[1]

Here’s what you need to know to find the best coverage at the cheapest price.

Cost of renters insurance by state

Insurance companies partially determine your rates according to the risk associated with your location. If you live in a state prone to frequent severe weather events or in a ZIP code with high rates of crime, you’ll likely face higher renters insurance premiums.

5 states with the cheapest renters insurance

The five states with the lowest renters insurance all have fairly low crime rates, which likely helps keep rates less expensive. Alaska, where renters insurance is the cheapest on average, also experiences a low number of billion-dollar weather events — just eight since 1980.^[3]

The following table compares the average monthly costs of renters insurance in the five cheapest states. The costs below reflect insurance policies with $100,000 in liability coverage and personal property coverage worth $30,000.

5 states with the most expensive renters insurance

Louisiana, the highest-priced state for renters insurance, has an average monthly cost nearly seven times higher than the average for the cheapest state. It also has one of the highest crime rates in the nation and a long list of billion-dollar weather disasters. The other states below are also vulnerable to certain severe weather events.

Below, you can find average costs for the five most expensive states for renters insurance. Costs reflect a $100,000 liability renters insurance policy covering $30,000 in personal property.

Cost of renters insurance by company

Although all insurance companies determine rates by considering risk factors, they each have unique ways of measuring risk and weighing specific risk factors. As a result, insurance rates can vary widely by company.

The following companies offer the cheapest renters insurance policies on average.

Cost of renters insurance by coverage amount

Just like with homeowners insurance, the amount of coverage you select will affect the cost of your renters insurance policy.

A typical renters insurance policy includes three different types of coverage:

• Personal property coverage

• Liability coverage

• Loss of use coverage

Find the average monthly renters insurance cost by coverage amount below. The reflected coverage limits are common throughout the industry.

Renters insurance deductible

Your renters insurance deductible is the out-of-pocket amount you need to pay before your policy kicks in to cover a claim. Typically, your renters insurance company will let you decide your deductible amount, which commonly ranges between $500 and $1,000.^[4]

Here’s an example of how that works. If you have a $500 deductible and file a $1,000 claim for water damage to your belongings from a leaking roof, you’ll pay $500 and the insurance company will pay the rest. But if your deductible is $1,000, you’ll have to pay for all the damage out of pocket.

The deductible you choose affects your renters insurance premium. Higher deductibles reduce the insurance company’s risk, so you’ll typically pay less for your policy. However, make sure you can comfortably pay your deductible amount in the event of damage.

What renters insurance covers

The following coverages are part of a renters insurance policy and will provide you with comprehensive financial protection:

• 

  Personal property coverage

  Personal property coverage protects your belongings if a covered event damages or destroys them. Covered events include fire, theft, vandalism, explosions, water (other than from a flood), and wind. You have a choice between an actual cash value or replacement cost policy.

• 

  Liability coverage

  If you, your family, or your pet cause damage to a guest or their property, this coverage can kick in. For example, if your dog chews apart a guest’s expensive jewelry, your insurance might cover it. It would also cover legal costs and provide no-fault medical protection to pay medical expenses for an injured party (but not for people who live in the home).

• 

  Loss of use coverage

  Also known as additional living expenses coverage, this protects you if a covered event badly damages or destroys your rented home and you have to live elsewhere temporarily. It covers the costs of a hotel or short-term rental, meals, and even commuting expenses if you’re staying farther away from work.

Pros and cons of renters insurance

Tenants can often choose for themselves whether to get renters insurance, but some landlords require it as part of their leasing agreements. It’s important to consider all the relevant drawbacks and benefits before you buy a policy.

Factors that affect renters insurance rates

A number of factors influence your insurance rates, including:

• Location: Insurance companies consider crime rates in your ZIP code, distance from emergency services, and how vulnerable your area is to natural disasters.

• Credit: Renters insurance companies use your credit history to calculate a credit-based insurance score. Low scores indicate a higher probability of filing a claim, so the insurance agency will charge higher rates.

• Claims: Previous claims make you riskier to insure and increase your renters insurance rate.

• Coverage limits: Your coverage limits determine how much the insurer might have to pay out for claims. Higher limits mean larger claims and more expensive rates.

• Deductible: As with coverage limits, the more the insurer might have to pay on claims, the more they’re likely to charge you. Higher deductibles usually mean lower rates.

• Other factors: Having pets — especially certain dog breeds — or potentially dangerous amenities, like a pool or hot tub, can result in higher renters insurance rates.

How to get cheap renters insurance

With so many insurance companies to choose from, finding the one with the cheapest rates for the coverage you need can be tricky. Here’s how to do it:

• Comparison shop. You can request quotes from insurer websites or use a price-comparison platform to get personalized quotes from several insurance companies at the same time. Comparing multiple quotes can help you find the cheapest coverage.

• Choose lower coverage limits. Renters insurance with lower coverage limits costs less. Consider decreasing your limits, but don’t go so low as to leave yourself underinsured.

• Choose a higher deductible. Higher deductibles mean lower premiums because you pay more out of pocket. To be safe, put the amount of the deductible into a savings account in case you have to file a claim.

• Install safety devices. Having safety equipment like deadbolts, security systems, and fire sprinklers in the home can reduce your premium.

• Bundle your renters and auto policy. Many insurance companies offer discounts when you have more than one policy with them.

• Stick with your insurance company. Insurance companies sometimes offer loyalty discounts, so finding a good insurer and sticking with it can save you money over time.

Renters insurance FAQs