Updated: October 9, 2026
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Out of 147.4 million U.S. housing units, 45.5 million are renter-occupied. Unlike homeowners, renters aren't covered by landlord insurance, leaving personal belongings vulnerable to theft, fire or liability claims.
Renters insurance provides affordable protection for tenants at an average cost of $170 per year as of 2021. Premiums vary by state due to coverage limits, crime rates and natural disaster risks, so compare options for the best value.
45.5 million U.S. households were renter-occupied in Q4 2024 despite a 6.9% rental vacancy rate.
Average renters insurance costs dropped from $190 in 2014 to $170 in 2021.
Coverage limits impact your cost: policies under $14,000 cost about $130, while policies over $100,000 cost $432.
Mississippi, Louisiana, Alabama, Oklahoma and Arkansas have the highest premiums (up to $258) due to natural disaster risks.
The national rental vacancy rate was 6.9% in Q4 2024, statistically similar to 6.6% in Q4 2023. Renters insurance protects your personal assets affordably as demand for rental properties stays consistent.
Annual renters insurance premiums stay under $200 on average. Year-over-year changes typically stay under 3%, with 2012 seeing less than 1% change. Premiums peaked at $190 in 2014 but have dropped steadily since. The biggest decrease happened between 2018 and 2019, when the average dropped from $179 to $174 (a 2.8% decrease). This downward trend continued through 2021, reaching $170.
Higher coverage limits mean higher premiums, but the rate of increase varies by tier. Premiums stay affordable for lower coverage amounts but climb at mid-range levels. Coverage between $38,000 and $43,999 averages $203, a major jump from lower tiers.
Coverage from $75,000 to $99,999 costs $284 on average because insurers take on more risk at higher limits. The biggest price jump hits at $100,000 and up, where you'll pay $432, which is over 50% more than the tier below.
Renters insurance averages $170 yearly nationwide, but what you pay depends heavily on your state. Mississippi charges the most at $258, with Louisiana at $243 and Alabama at $222 close behind. Hurricanes and floods drive up rates in these states.
North Dakota sells the cheapest renters insurance at $114, then South Dakota at $117 and Wisconsin at $127. These states cost less because natural disasters and property crimes happen less often.
State | Rental Insurance Premium | |
|---|---|---|
1. | Mississippi | $ 258 |
2. | Louisiana | $ 243 |
3. | Alabama | $ 222 |
4. | Oklahoma | $ 221 |
5. | Arkansas | $ 206 |
State | Rental Insurance Premium | |
|---|---|---|
1. | North Dakota | $ 114 |
2. | South Dakota | $ 117 |
3. | Wisconsin | $ 127 |
4. | Minnesota | $ 132 |
5. | Iowa | $ 135 |
A house-year is 12 months of rental coverage, from one policy or several that together span a full year. The metric measures total renters insurance volume within each state.
Renters insurance reached over 19 million house-years nationally in 2021. The five states with the highest volume were:
These states account for 39% of all U.S. house-years. Washington, D.C., has the highest ratio of renters insurance house-years at 43.3%. The top state ratios are:
These figures reflect HO-4 policies, which cover renters' belongings and liability. An HO-4 policy protects personal property and covers legal costs if someone is injured in the unit. It does not cover the building structure, which falls under the landlord's policy. HO-3 policies cover both the building and possessions and apply to homeowners rather than renters.
Your coverage amount, deductible, location, credit history and rental property's age and condition affect renters insurance premiums. Insurance providers assess these details to determine your risk level and calculate your premium:
Higher limits mean a higher premium. Covering high-value items such as electronics, jewelry or collectibles costs more.
Create an inventory of your possessions to determine how much protection you need and avoid paying for coverage you don't need.
Higher deductibles lower the renters insurance premium. Paying more out of pocket on a claim reduces the insurer's risk, which makes the policy cheaper. Lower deductibles raise the premium because the insurer covers more of each claim.
Select a deductible that balances affordability and protection, and keep enough savings to cover it in case of a loss.
Insurers factor neighborhood risk into the premium. Areas prone to hurricanes, wildfires or flooding carry higher premiums because of greater property damage risk.
Crime rates also matter. Neighborhoods with high theft or vandalism rates have more expensive premiums. Research an area's crime statistics and disaster history before renting to estimate insurance costs.
Many insurers use credit history to predict claim likelihood. Strong credit lowers the perceived risk and the premium. Poor credit raises the premium because insurers expect a greater risk of missed payments or claims.
Improve your credit score before applying for renters insurance if needed. Paying bills on time and reducing outstanding debts can help you qualify for better rates.
Newer properties with modern safety features such as smoke detectors, security systems and fire-resistant materials carry lower premiums because they reduce the risk of damage or theft.
Older buildings with outdated wiring, plumbing or structural issues cost more to insure. They are more prone to maintenance problems, which cause frequent claims and higher premiums. Choose a well-maintained property to keep costs down.
MoneyGeek's experts answered common questions about renters insurance cost changes, state differences, coverage amounts and top providers:
Renters insurance costs have declined over the past decade. The average peaked at $190 in 2014 and dropped to $170 in 2021. Year-over-year changes typically stayed under 3%.
Renters insurance has gotten cheaper because more insurers compete for customers and better risk models let them price policies more accurately. New technology has also made filing claims faster and cheaper, so insurers can charge less.
Location significantly impacts renters insurance premiums. In 2021, Mississippi ($258), Louisiana ($243) and Alabama ($222) had the highest premiums due to natural disaster risks. North Dakota ($114), South Dakota ($117) and Wisconsin ($127) had the lowest premiums.
About 55% of U.S. renters (approximately 61 million people) currently have renters insurance, while 45% remain uninsured. This leaves many renters without financial protection against theft, fire or liability claims.
Most renters carry $20,000 to $30,000 in personal property coverage, enough to cover furniture, electronics and clothing for a typical household. Renters with high-value items such as jewelry or collectibles should consider higher limits.
State Farm, Auto-Owners and Nationwide consistently rank among the best renters insurance providers for affordable rates, coverage options and customer service, per MoneyGeek's analysis. Compare quotes and review customer ratings to find the right fit for your needs.
Explore these MoneyGeek resources to learn more about renters insurance, renting trends and homeowners insurance facts:
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.
