Facts and Statistics About Renters Insurance

Renters insurance in the U.S. costs an average of $170 per year as of 2021. Premiums range from $114 in North Dakota to $258 in Mississippi, depending on coverage limits and state risks such as natural disasters.

By Mark Fitzpatrick

Updated: February 27, 2025

Advertising & Editorial Disclosure

Smiling woman holding a set of house keys with a small wooden house keychain, expressing excitement.

With 45.5 million out of 147.4 million U.S. housing units renter-occupied, demand for rental properties remains high. Unlike homeowners, renters are not covered by landlord insurance, leaving personal belongings vulnerable to risks like theft, fire or liability claims.

Renters insurance offers affordable and comprehensive protection for tenants. As of 2021, the average cost is $170 per year. Premiums vary across states due to factors such as coverage limits, crime rates and natural disaster risks, making it essential to compare options for the best value.

KEY TAKEAWAYS

45.5 million U.S. households were renter-occupied in Q4 2024, reflecting high demand despite a 6.9% rental vacancy rate.
The average cost of renters insurance has been declining since 2014, reaching its lowest point of $170 per year in 2021.
Although average premiums have decreased, your coverage limits impact the cost. Policies covering less than $14,000 cost around $130, while those covering $100,000 and higher cost $432.
Mississippi, Louisiana, Alabama, Oklahoma and Arkansas had the highest average annual premiums in 2021, with costs reaching up to $258 due to higher risks from natural disasters.

Statistics on Renters Insurance

The number of renter-occupied households in the U.S. continues to grow. In the fourth quarter of 2024, the national rental vacancy rate was 6.9%, which is statistically similar to 6.6% in the same quarter of 2023. Renters insurance comes in handy in this consistent demand, as it is an affordable way to protect your personal assets.

As with all things, the rate of renters insurance premiums in the U.S. has fluctuated over time.

Numbers show that the annual average cost of renters insurance has consistently remained under $200. Year-over-year fluctuations have generally stayed under 3%, with 2012 seeing the least amount of change at less than 1%.

The highest average premium was recorded in 2014 at $190, but since then, rates have steadily decreased. The most significant change was between 2018 and 2019, when the average dropped from $179 to $174, a 2.8% decrease. This downward trend continued through 2021, reaching the lowest point of $170.

Insurance Coverage and Premiums Paid

Renters insurance premiums increase as coverage limits rise, but the rate of increase varies across different tiers. Premiums remain relatively affordable for lower coverage amounts but start to climb more noticeably at mid-range levels. Specifically, the average premium for coverage between $38,000 and $43,999 is $203, marking a significant jump compared to lower tiers.

The most substantial increase is seen for policies ranging from $75,000 to $99,999, where the average cost reaches $284. This notable rise compared to mid-range coverage plans reflects the added risk insurers take on with higher protection limits. The sharpest escalation occurs at the $100,000 and over tier, where the average premium jumps to $432 — over 50% more than the previous level.

Cost of Renters Insurance by State

The average cost of renters insurance in the U.S. is $170 per year, but premiums vary significantly by state. Renters in Mississippi pay the highest average annual premium at $258, with Louisiana at $243 and Alabama at $222. These states face higher rates due to increased risks from natural disasters such as hurricanes and flooding.

On the other end, the most affordable renters insurance is found in North Dakota, with an average premium of $114, followed by South Dakota at $117 and Wisconsin at $127. These lower rates are largely due to fewer natural disaster risks and lower property crime rates.

Top 5 States With the Highest Renters Insurance

	State	Rental Insurance Premium
1.	Mississippi	$ 258
2.	Louisiana	$ 243
3.	Alabama	$ 222
4.	Oklahoma	$ 221
5.	Arkansas	$ 206

Top 5 States With the Lowest Renters Insurance

	State	Rental Insurance Premium
1.	North Dakota	$ 114
2.	South Dakota	$ 117
3.	Wisconsin	$ 127
4.	Minnesota	$ 132
5.	Iowa	$ 135

Renters Insurance House-Year by State

A house-year refers to 12 months of insurance coverage for a rental dwelling, whether through a single policy or multiple policies that collectively provide year-long coverage. This metric helps measure the volume of renters insurance policies in each state.

In 2021, renters insurance accounted for over 19 million house-years nationwide. The following states had the highest number of house-years:

California: 2,712,361
Texas: 2,167,580
New York: 982,420
Florida: 974,616
Pennsylvania: 760,575

These five states alone accounted for approximately 39% of all house-years in the U.S., highlighting the concentration of rental markets in these areas.

Reflecting its large renter population, the District of Columbia had the highest ratio of renters insurance house-years overall at 43.3%. When it comes to individual states, the highest ratios were recorded in:

North Dakota: 30.6%
Oregon: 27.9%
Texas: 27.6%
Washington: 26.5%
California: 26.2%

These figures are based on HO-4 policies, which provide renters with personal property and liability coverage, protect their belongings and offer legal protection if someone is injured in their rental unit. However, HO-4 policies do not cover the building itself, as that responsibility falls on the landlord’s insurance.

In contrast, HO-3 policies are designed for homeowners and cover both the structure and personal property. Renters should understand this difference to ensure they’re adequately protected without paying for unnecessary coverage.

Factors Influencing Renters Insurance Premiums

Several factors can affect the cost of renters insurance premiums, including your coverage amount, deductible, location, credit history and the age and condition of your rental property. Insurance providers assess these details to determine your level of risk and calculate your premium. Here’s a closer look at the key factors that influence your rate:

Amount of Coverage

Your policy’s coverage limits play a major role in how much you pay for renters insurance. Higher coverage limits provide more protection but come with higher premiums. This is especially true for policies covering high-value items like electronics, jewelry or collectibles.

Assess your personal belongings accurately to avoid paying for unnecessary coverage. Consider creating an inventory of your possessions to determine how much protection you really need, which can help you optimize your premium.

Deductible

Opting for a higher deductible can significantly lower your renters insurance premium. By agreeing to pay more out of pocket if you file a claim, you minimize the financial risk for the insurer, leading to a cheaper policy. Conversely, choosing a low deductible increases your premium since the insurer covers a larger portion of potential claims.

The key is to select a deductible that balances affordability and protection. Make sure you have enough savings to cover the deductible amount in case of a loss.

Location of Residence

Insurers assess the risks associated with your neighborhood when determining your premium. Living in an area prone to natural disasters, such as hurricanes, wildfires or flooding, elevates your risk of property damage and, consequently, your premium.

Crime rates also play a significant role. Neighborhoods with high rates of theft or vandalism typically have more expensive premiums. Before renting, research the area’s crime statistics and disaster history to get a better idea of how much your insurance will cost.

Credit History

Many insurers use your credit history to predict the likelihood of filing a claim. A strong credit score suggests financial responsibility and lowers your perceived risk, leading to more affordable premiums. Meanwhile, a poor credit score could result in higher premiums due to the increased risk of missed payments or claims.

If your credit score needs improvement, consider taking steps to raise it before applying for renters insurance. Pay bills on time and reduce outstanding debts to qualify for better rates.

Age and Condition of Property

Renting a newer property with modern safety features, such as smoke detectors, security systems and fire-resistant materials, can decrease your insurance premium. These features lessen the risk of damage or theft, making the property less costly to insure.

On the flip side, older buildings with outdated wiring, plumbing or structural issues are seen as higher risk. They’re more likely to experience maintenance problems, leading to more frequent claims and higher premiums. If possible, choose a well-maintained property to keep your insurance costs down.

Renters Insurance Statistics FAQ

There’s more to renters insurance than just the price. To help you make informed decisions, we’ve answered the most common questions about cost changes, state differences, coverage amounts and the best providers.

How has the cost of renters insurance changed over the years?

The average cost of renters insurance has generally declined over the past decade. It peaked at $190 in 2014 and reached its lowest point of $170 in 2021. The decline has been gradual, with year-over-year changes typically under 3%.

Why has the average cost of renters insurance been decreasing?

This decrease is due to increased competition among insurers and improved risk assessment models, which enable more accurate pricing. Additionally, advancements in technology have streamlined claims processes, reducing administrative costs and allowing insurers to pass on savings to policyholders.

Does location affect your renters insurance premium?

Yes, location significantly impacts renters insurance premiums. In 2021, the most expensive states were Mississippi ($258), Louisiana ($243) and Alabama ($222), largely due to higher risks from natural disasters. In contrast, North Dakota ($114), South Dakota ($117) and Wisconsin ($127) had the lowest premiums.

How many Americans have renters insurance, and how many don’t?

About 55% of U.S. renters, or approximately 61 million people, currently have renters insurance, while 45% remain uninsured. This leaves a significant portion of renters without financial protection against risks like theft, fire or liability claims.

What is the most common renters insurance coverage amount?

The most common coverage amount for renters insurance is between $20,000 and $30,000 for personal property. This range typically provides enough protection to cover furniture, electronics and clothing for most renters. Higher coverage limits are available for those with valuable items, such as jewelry or collectibles.

Which renters insurance provider is the best?

The best renters insurance provider depends on individual needs, but State Farm, Auto-Owners Insurance and Nationwide are consistently rated among the top for their affordable rates, comprehensive coverage options and customer service. It’s recommended to compare quotes and read customer reviews to find the best fit.