How much is renters insurance in 2021?

Renters insurance may be a good investment whether you live in a high-value rental home or a cozy apartment. Renters insurance costs an average of $509 per year and provides many of the same protections as a comparably more expensive homeowners insurance policy, such as coverage for personal property, loss of use, and liability.

Renters insurance could protect you in the event of an unexpected event such as a fire, theft, vandalism, or other calamity. Though policy costs will vary depending on the provider, location, and other factors, renters insurance for around $42 per month may be considered relatively inexpensive when compared to how much you might lose if something goes wrong.

Average cost of renters insurance

Knowing the average rates in your state can help you determine how much renters insurance policy will cost. Everything from the value of your personal property to the types of losses that are more likely to occur can be influenced by where you live.

Renters insurance cost by state

Although renters insurance is generally inexpensive, premiums can vary greatly from state to state due to factors such as crime rate and the likelihood of specific weather claims that could damage your personal property. The table below shows the average cost of renters insurance in each state, including annual and monthly premiums. These are the premiums for a renters insurance policy with a personal property limit of $25,000.

Depending on where you live, the renters insurance quotes you receive may be higher or lower than the national average of $509 per year. Each state has its own set of factors that can influence renters insurance premiums. Oklahoma renters, for example, pay an average of $1,040 per year. The higher premium could be associated with a higher risk of weather-related losses to your items in this state.

The most expensive states for renters insurance

The following states have the highest average renters insurance premiums, whether due to high population, high cost of living, or expensive common causes of loss.

Despite the fact that some states have higher renters insurance premiums than the national average, the overall value for the cost is significantly less than not having coverage and potentially being left with out-of-pocket expenses after a loss. Remember that the rates you pay will also be determined by your personal information, such as your credit score, the coverages you select, and your prior claims history. Comparing renters insurance quotes from various companies may help you find a policy at a lower cost.

The cheapest states for renters insurance

The five states with the lowest renters insurance premiums in the United States are as follows. On average, renters in these states pay less than $25 per month for coverage.

Cheap average rates are not always indicative of value. Make sure to carefully review your renters insurance quotes to ensure that you are getting the coverage you require.

Factors that influence the cost of renters insurance

There are numerous factors that can influence the cost of your renters insurance policy. Some of these expenses may be under your control, while others may not.

One of the most important advantages of having renters insurance is the ability to replace your personal belongings in the event of a covered claim. Personal property is generally covered in one of two ways under a renters insurance policy. Replacement cost value (RCV) policies will compensate you for the cost of replacing your damaged property with new property of comparable quality. An actual cash value (ACV) policy, on the other hand, replaces your personal property at its depreciated value. Because they reimburse you for lower amounts, ACV policies are generally less expensive than RCV policies.

Other options for controlling the cost of your policy include selecting a low or high deductible, paying your premium in full rather than monthly, and taking advantage of common discounts such as multi-policy and safety equipment discounts. Factors beyond your control include the location of your rental and the most common causes of loss in your area.

How to save on renters insurance

Despite the fact that renters insurance is typically less expensive than homeowners insurance, there are still ways to save. Understanding the rating factors of your renters insurance policy that you can influence may help you find savings opportunities.

Bundle your other insurance policies

If you have other policies, such as auto or life insurance, you may want to consider bundling them with a single insurer. You may be eligible for a discount on all of your insurance policies as a result of this.

Choose a cash value policy

The primary distinction between an actual cash value (ACV) and a replacement cost value (RCV) policy is whether your personal property is covered at its depreciated value or at its replacement cost. RCV policies are typically more expensive because many of your items, such as your television and laptop, are likely to be more expensive to replace at market value. Because ACV policies pay for your items at their depreciated value, if you file a claim, you will receive less money for their replacement, but you may also pay lower insurance premiums.

Taking an inventory of the total replacement cost of your items may assist you in determining which policy settlement type is best for you.

Increase your deductible

In the event of a claim, your policy deductible is the amount you pay out of pocket. In general, the higher your deductible, the lower the cost of your renters insurance policy. Increasing your deductible may lower your premiums, but choose a level that you can afford to pay if you file a claim.

Install safety equipment

The addition of safety and security equipment, such as smoke detectors or a security system, may entitle you to a discount. Thieves may be deterred by security equipment, and smoke alarms can alert you to potentially dangerous situations. Some insurers will give you a discount if you take these precautions.

Adjust your payment method

Paying your annual premium in full may result in a discount from insurers, but it may also relieve you of the burden of managing another monthly bill or paying billing fees. Check with your insurance company to see if this discount is available.

Review your personal property coverage limit

The dollar amount you choose to cover your personal property for is another aspect of your renters insurance policy that you can control. Reducing the amount will most likely result in a lower premium. Before you reduce your coverage, you should think about whether you've included enough to cover the cost of replacing your personal property.

Frequently asked questions

Do you need renters insurance?

While renters insurance is not required by law, your landlord or rental complex may require it. It may also be advantageous to you by providing coverage for your personal belongings. A landlord's insurance policy will typically cover losses affecting the actual structure of your rental building, but you are responsible for any damage to your personal property as well as any liability arising from any incidents that injure your guests. Some renters insurance companies even provide extra coverage for your pets.

Is the cost of renters insurance worth it?

Renters insurance costs around $42 per month and is intended to protect you from financial hardship if your belongings are damaged or someone is injured on your property. Many policies also include loss of use coverage, which pays for temporary living expenses if your rental becomes uninhabitable as a result of a covered claim. Renters insurance may be an important part of your financial planning if you don't want to be left with out-of-pocket expenses after an unexpected event.

What does your renters insurance policy not cover?

Damage caused by earthquakes and floods is typically not covered by renters insurance policies. Riders and additional insurance policies, on the other hand, may be able to cover these events. Speak with an insurance provider about the various coverage options available. Other scenarios, such as a bed bug infestation and damage to your roommate's property, may also be excluded from most standard policies.

Methodology

CompareInsurance analyses 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. using Quadrant Information Services. Rates are based on 40-year-old male and female renters with no claims, good credit, and the following coverage limits:

• Personal Property, Coverage C: $25,000
• Loss of Use, Coverage D: $5,000
• Liability: $100,000, Coverage E
• Medical Payments: $1,000, Coverage F

The renters are also subject to a $500 deductible.

These are sample rates and should only be used for comparison. Your quotes will be unique.