How Much Is Renters Insurance - ALLCHOICE Insurance - North Carolina

How Much Is Renters Insurance?

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Return To: Renters Insurance – The Ultimate Guide

Many Americans rent a house or apartment. According to the 2021 U.S. census, renters occupy more than 43 million housing units all over the country.

As a renter, you enjoy several benefits, such as being free from the responsibility of repairing or renovating your housing unit. Enjoying these advantages does not mean that renting is without any drawbacks.

There may be instances where the landlord insurance will not be able to cover damages that occur in your rental unit. For example, the loss of your possessions because of robbery will not be covered by a landlord’s insurance. In such cases, you will have to bear the full brunt of the losses.

A renters insurance plan will allow you to protect your property if ever any unforeseen incidents occur.

Brief Overview of Renters Insurance

Renters insurance has similar benefits to homeowner’s insurance but with limited coverage. Renters insurance only covers your personal belongings in the event of theft or damage as well as your personal liability and any additional living expenses incurred when you are forcefully relocated from your rental unit. Renters insurance is much less expensive than homeowner insurance since you are only insuring your personal possessions and not the property itself.

The Importance of Renters Insurance

Getting renters insurance is highly recommended if you have any belongings that are expensive or valuable to you. This includes furniture, appliances, jewelry, gadgets, and more. Getting renters insurance will guarantee that your things are protected. You won’t need to shell out your money when they are damaged or stolen.

Renters Insurance Coverages

The insurance provider often dictates the extent of what a renters insurance plan covers. The common forms of coverage included in renters insurance policies are listed below.

Personal Belongings 

A renters insurance policy will compensate you for the loss or damage of personal belongings such as appliances, furniture, and clothes. Your policy’s coverage is usually limited to particular situations, including theft, fire, vandalism, lightning, explosion, windstorm, and volcanic eruption.

Liability

This insurance policy will help pay the costs if anyone is hurt in your home and takes legal action. It will cover any accidental harm or damage you, your family, your pets, or even your furniture and floors cause to others when they are in your rented unit.

Additional Living Expenses

With this coverage, your insurer will compensate you for your expenses in situations where an incident specified in your insurance policy forcefully removes you from your home. These expenses include those spent for accommodation, meals, and the like.

How Much Is Renters Insurance?

Statistics from the Insurance Information Institute (III) indicate that the annual average renters insurance cost across the country in 2018 was $179. To determine the actual cost of renters insurance, you need to specify the number of belongings you choose to insure and the monetary cost of those belongings.

Location is also a significant factor for the cost of renters insurance. Refer to the table below to see III’s data on the average premium paid by the renters in each state in 2018:

StateAnnual Average
Alabama$222
Alaska$175
Arizona$175
Arkansas$211
California$178
Colorado$164
Connecticut$188
D.C.$157
Delaware$157
Florida$185
Georgia$214
Hawaii$181
Idaho$152
Illinois$166
Indiana$172
Iowa$144
Kansas$172
Kentucky$166
Louisiana$234
Maine$149
Maryland$161
Massachusetts$191
Michigan$185
Minnesota$140
Mississippi$252
Missouri$179
Montana$147
Nebraska$149
Nevada$182
New Hampshire$148
New Jersey$160
New Mexico$186
New York$189
North Carolina$158
North Dakota$126
Ohio$169
Oklahoma$236
Oregon$161
Pennsylvania$157
Rhode Island$185
South Carolina$184
South Dakota$127
Tennessee$195
Texas$225
Utah$155
Vermont$153
Virginia$152
Washington$160
West Virginia$189
Wisconsin$143
Wyoming$146
Average Renters Insurance Cost By State

Based on these statistics, the states with the five highest average renters insurance cost for 2018 are:

  1. Mississippi, with an annual average renters insurance cost of $252
  2. Oklahoma, with an annual average renters insurance cost of $226
  3. Louisiana, with an annual average renters insurance cost of $234
  4. Texas, with an annual average renters insurance cost of $225
  5. Alabama, with an annual average renters insurance cost of $222

The states with the five lowest average cost of renters insurance in 2016 are:

  1. North Dakota, with an annual average renters insurance cost of $126
  2. South Dakota, with an annual average renters insurance cost of $127
  3. Minnesota, with an annual average renters insurance cost of $140
  4. Wisconsin, with an annual average renters insurance cost of $143
  5. Iowa, with an annual average renters insurance cost of $144

Factors That Can Affect Rent Insurance Cost

Renters insurance premiums are calculated differently by each insurance provider, but these are the common factors that can affect how much you need to pay.

Location

As mentioned earlier, your home’s location plays a significant role in determining the renters insurance premium. You will have to pay more for renters insurance if you live in an area vulnerable to natural calamities like cyclones, tornadoes, or wildfires.

Take Texas, for example. Texas has a higher annual insurance premium rate than the national average as one of the most tornado-prone states.

Other factors related to location include the area’s crime rate and proximity to a fire station or hydrant.

Credit Score

Renters insurance premiums are influenced by your credit score, as are many other aspects of your financial life. A good credit score is seen as an indication of financial stability and will be more favorable to you when trying to get a lower insurance premium.

Coverage Limits

The higher the value of your home inventory, the higher the rent insurance cost. In most instances, the amount of coverage is based on how many belongings you have, but it’s the total value that matters more. For example, you might think that the renters insurance premium for a three-bedroom rental unit will be higher than a studio unit, but it will still depend on what is inside.

Dog Ownership

The renter insurance cost is not directly affected if you own a dog, but it impacts coverage. Your renters insurance may be able to help cover the expenses if your dog bites someone. Your insurance may cost more if you own a larger or aggressive dog, and it may not cover certain breeds at all.

Takeaway Points

If you are renting out a home, your landlord’s insurance will not cover your personal belongings. Getting renters insurance will guarantee the protection of your valuables during particular incidents.

Reports indicate that the annual average cost of renters insurance in 2018 was $179. The cost of renters insurance will depend on several variables such as location, credit score, coverage limits, and dog ownership. To determine how much your renters insurance will cost, consider these factors and reach out to insurance companies for quotes.

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