Renters Insurance Cost: Average Rates & What Drives Them

Renters insurance covers your belongings if they are stolen or damaged by a covered event such as fire, and it usually includes personal liability protection and help with living expenses if your rental becomes unlivable. It does not cover the building itself. That stays with the landlord's policy.

Because the coverage is limited to your possessions and liability, renters policies are among the lowest priced home-related insurance products. The sections below show how the premium changes with the amount of coverage, the state, and the policy limits, and why two reputable sources report different national averages.

Insurers quote renters policies as an annual premium, and most companies let you pay monthly or in one payment. A monthly plan may add a small installment fee, so ask whether paying once a year changes the total. To get a rough monthly figure, divide the annual premium by twelve, then confirm the exact amount on your quote.

Personal property coverage is the limit the policy pays to replace your belongings. A larger limit means a higher premium, though the increase is gradual. The figures below are from a single analysis that also assumed a 100,000 dollar liability limit and a 500 dollar deductible.

To choose a limit, many renters list their furniture, electronics, and clothing by room and estimate what it would cost to replace everything. Ask a licensed insurance agent whether the policy pays actual cash value or replacement cost, since that setting changes both the payout and the price.

Rates vary by state because of weather risk, theft rates, and local claim costs. The states below illustrate the spread in the same analysis.

Inside a state, the neighborhood, the building type, and whether the unit has an alarm or sprinklers can still change the rate.

Another analysis priced policies by pairing personal property limits with a fixed liability limit. Its sample starts from a lower property limit than the first table, so the numbers are not directly comparable, but the direction is the same.

Raising the liability limit usually costs less than raising the property limit, according to the first source, so the two limits are worth pricing separately.

• Your deductible, which is the amount you pay before the policy pays on a claim
• Credit-based insurance score in states that allow it
• Claims history and the age or condition of the building
• Optional add-ons such as coverage for valuables, water backup, or identity theft
• Discounts for bundling with auto insurance

Landlords and leases sometimes require a minimum liability limit, so check the lease before you finalize coverage.

The two national figures below do not match because the sample policies differ. NerdWallet prices 30,000 dollars of personal property, 100,000 dollars of liability, and a 500 dollar deductible. MoneyGeek prices 20,000 dollars of personal property and 100,000 dollars of liability. Method, the mix of insurers, and the year of the data can also contribute. Compare quotes for identical limits instead of judging one policy against another source's average.