Average Renters' Insurance Costs by State

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Last Updated:January 18, 2024

Average Renters' Insurance Costs by State

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Renters insurance, often overlooked but undeniably essential, is a financial safety net for those who lease their homes. In an increasingly unpredictable world, this insurance offers peace of mind by safeguarding your personal belongings and providing liability coverage. Whether you rent an apartment, a house, or a condo, renters insurance is a crucial tool in protecting your assets and mitigating unforeseen risks.

Before we move on to the list of companies, it’s important to point out how renters insurance can vary from state to state. This is important for you to remember if you move across state lines someday.

Without trying to sound too lawyerly, you should know no state mandates you to have renters insurance. However, some states set coverage limits, or caps, on certain aspects of renters insurance coverage. A good example is Oregon, where the state puts a $100,000 limit on liability. So, while you aren’t required to carry it, your state can still get involved in certain aspects of coverage.

Not only do different states have different requirements, but a landlord may require you to carry renters insurance. The bottom line is to check with your landlord about any requirements they have, but a good insurance agent can explain your specific state’s limitations.

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Understanding renters insurance

Renters insurance is a type of policy designed to protect tenants from financial losses related to their rented living spaces. Unlike homeowners insurance, which covers the building itself, renters insurance focuses on the personal property and liability of the individual renting the property. Here’s what it typically covers:

Personal property coverage. This part of the policy protects against the loss of the renter's belongings due to theft, fire, vandalism, and certain natural disasters. It means if your electronics, furniture, clothing, and other personal items are damaged or stolen, the insurance company will help cover the cost of replacement or repair.
Liability protection. Renters insurance also includes liability coverage, which protects renters in case someone is injured while in their rental property, or if the renter accidentally causes injury to someone. It can cover legal defense costs as well as damages you're found liable for.
Additional living expenses (ALE). If your rental unit becomes uninhabitable due to covered perils like a fire or storm damage, ALE coverage helps pay for temporary living costs, such as hotel bills, that exceed your usual living expenses.

Renters insurance is both a financial safety net and a peace of mind for tenants. It ensures that a renter is not out of pocket for significant expenses following unexpected events. Despite its comprehensive coverage, renters insurance is generally affordable, with premiums varying by state due to factors like climate risk, crime rates, and the cost of living.

Understanding the average cost of renters insurance by state can help renters budget for this essential coverage. The price differences reflect the varying risks and insurance claims history in each state, influencing how insurance companies calculate premiums. However, regardless of where one lives, renters insurance remains a crucial investment for protecting personal property and guarding against liability.

Cost variations among the states

You might not realize that where you live makes a big difference in how much you pay in renters insurance. The latest statistics from the Insurance Information Institute show the average renters' insurance rates per state.

State	Average monthly cost
Alabama	$29
Alaska	$22
Arizona	$18
Arkansas	$23
California	$17
Colorado	$14
Connecticut	$17
Delaware	$18
District of Columbia	$27
Florida	$27
Georgia	$27
Hawaii	$19
Idaho	$14
Illinois	$14
Indiana	$17
Iowa	$13
Kansas	$17
Kentucky	$20
Louisiana	$34
Maine	$12
Maryland	$16
Massachusetts	$16
Michigan	$26
Minnesota	$15
Mississippi	$31
Missouri	$21
Montana	$14
Nebraska	$15
Nevada	$20
New Hampshire	$12
New Jersey	$16
New Mexico	$19
New York	$14
North Carolina	$17
North Dakota	$14
Ohio	$18
Oklahoma	$26
Oregon	$14
Pennsylvania	$16
Rhode Island	$18
South Carolina	$17
South Dakota	$12
Tennessee	$20
Texas	$18
Utah	$14
Vermont	$14
Virginia	$15
Washington	$13
West Virginia	$19
Wisconsin	$13
Wyoming	$14

As you can see, Mississippi is much more expensive than Maine, with many variations among the states.

No matter where you live, renters insurance is valuable enough to add to your monthly budget. But with our list of the best, you have a great place to start for renters insurance quotes and comparisons.

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How much is renters insurance on average, and what factors influence renters insurance rates?

The cost of renters insurance varies widely, but the national average is typically between $15 and $30 per month. Renters insurance rates are influenced by several factors including the location of the rental property, the amount of coverage you choose, the types of coverage included in the policy, the deductible amount, and the policyholder's credit history. High-risk areas for natural disasters or theft may see higher premiums, while areas deemed safer may have lower costs.

What is a deductible in a renters insurance policy, and how does it affect the cost of your renters insurance?

A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in to cover a claim. Choosing a higher deductible can lower your annual premium for renters insurance because you're assuming more of the financial risk yourself. Conversely, a lower deductible means you'll pay less out-of-pocket when you file a claim, but your annual premiums will be higher.

Can my credit score impact my renters insurance rates, and is it possible to get the cheapest renters insurance with poor credit?

Yes, your credit score can significantly impact your renters insurance rates. Many insurers use credit history as an indicator of a potential claim risk. Individuals with good credit are often eligible for lower premiums, while those with poor credit may face higher rates. However, shopping around and comparing quotes can help you find the cheapest renters insurance options available to you, regardless of credit score. Additionally, improving your credit score over time can help reduce your rates.

How can bundling renters insurance with auto insurance or home insurance affect my overall insurance costs?

Bundling your renters insurance with other policies, such as auto insurance or home insurance, can lead to significant savings on your premiums. Many insurance companies offer discounts for bundling as an incentive, as it's more efficient for them to manage multiple policies for a single customer. This can be an effective way to reduce the overall cost of your renters insurance and other insurance coverages.

What should I consider when deciding on the amount of coverage for my renters policy, and how do different types of coverage affect my premium?

When deciding on the amount of coverage for your renters policy, consider the total value of your personal property to ensure you have enough coverage to replace your belongings in the event of a loss. You should also consider the potential costs of liability claims. Different types of coverage, such as personal property, liability, and additional living expenses, will affect your premium based on the amount of coverage you choose. Opting for more comprehensive coverage will increase your premium, but it provides greater protection. It's essential to balance the cost with the level of protection you need to find a policy that suits your budget and coverage requirements.

The bottom line

Renters' insurance is a fundamental shield that can make a world of difference in your life, regardless of where you reside. However, it's important to note that the specifics of renters insurance can vary from state to state due to differing regulations and market conditions. Before securing a policy, it's advisable to consult with a local insurance expert who can provide guidance tailored to your location's unique requirements. Whether you're in bustling New York City, the serene landscapes of Montana, or anywhere in between, renters insurance ensures you have a safety net to fall back on in times of need, granting you the freedom to enjoy your rented space with confidence and tranquility.

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Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.

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