Renters insurance is one of the best financial deals available — for about the cost of a streaming subscription, you get coverage for your belongings, liability protection, and more. Despite this, only 55% of renters have it.
Average Renters Insurance Cost by State
| Rank | State | Avg. Annual Premium | Monthly Cost |
|---|---|---|---|
| 1 | Mississippi | $280 | $23 |
| 2 | Louisiana | $268 | $22 |
| 3 | Oklahoma | $256 | $21 |
| 4 | Alabama | $244 | $20 |
| 5 | Texas | $236 | $20 |
| 6 | Arkansas | $228 | $19 |
| 7 | Georgia | $220 | $18 |
| 8 | Kansas | $212 | $18 |
| 9 | Tennessee | $204 | $17 |
| 10 | Florida | $200 | $17 |
| 11 | Kentucky | $196 | $16 |
| 12 | South Carolina | $192 | $16 |
| 13 | Colorado | $188 | $16 |
| 14 | Nebraska | $184 | $15 |
| 15 | Missouri | $180 | $15 |
| 16 | Michigan | $176 | $15 |
| 17 | Montana | $172 | $14 |
| 18 | Nevada | $168 | $14 |
| 19 | Connecticut | $164 | $14 |
| 20 | New Mexico | $164 | $14 |
| 21 | Maryland | $160 | $13 |
| 22 | Illinois | $160 | $13 |
| 23 | New York | $156 | $13 |
| 24 | Indiana | $156 | $13 |
| 25 | Arizona | $152 | $13 |
| — | National Average | $148 | $12 |
| 26 | West Virginia | $148 | $12 |
| 27 | Delaware | $144 | $12 |
| 28 | Virginia | $140 | $12 |
| 29 | Minnesota | $140 | $12 |
| 30 | Pennsylvania | $136 | $11 |
| 31 | South Dakota | $136 | $11 |
| 32 | Ohio | $132 | $11 |
| 33 | North Carolina | $132 | $11 |
| 34 | Alaska | $128 | $11 |
| 35 | Oregon | $128 | $11 |
| 36 | California | $124 | $10 |
| 37 | New Jersey | $124 | $10 |
| 38 | Washington | $120 | $10 |
| 39 | Iowa | $120 | $10 |
| 40 | Massachusetts | $116 | $10 |
| 41 | Utah | $116 | $10 |
| 42 | New Hampshire | $112 | $9 |
| 43 | Wisconsin | $108 | $9 |
| 44 | Hawaii | $104 | $9 |
| 45 | Idaho | $104 | $9 |
| 46 | Maine | $100 | $8 |
| 47 | Wyoming | $96 | $8 |
| 48 | Vermont | $92 | $8 |
| 49 | Rhode Island | $88 | $7 |
| 50 | North Dakota | $86 | $7 |
What Does Renters Insurance Cover?
| Coverage Type | What It Covers | Typical Limit |
|---|---|---|
| Personal property | Your belongings (clothes, electronics, furniture) | $20,000-$50,000 |
| Liability | If someone is injured at your place or you damage someone else’s property | $100,000-$300,000 |
| Additional living expenses | Hotel/food costs if your unit becomes uninhabitable | 20-40% of personal property coverage |
| Medical payments | Minor medical bills for guests injured at your place (no lawsuit needed) | $1,000-$5,000 |
| Off-premises coverage | Your belongings stolen or damaged outside your home | Typically 10% of personal property coverage |
What Renters Insurance Does NOT Cover
- Flooding (requires separate flood insurance)
- Earthquakes (requires separate earthquake insurance)
- Your roommate’s belongings (they need their own policy)
- Your car or items inside it (covered by auto insurance)
- Expensive jewelry/art above standard limits (need a rider)
- Pest damage (bed bugs, termites, rodents)
- Intentional damage you cause
Replacement Cost vs. Actual Cash Value
| Policy Type | How It Pays | Example: 3-Year-Old Laptop Worth $1,500 New |
|---|---|---|
| Actual Cash Value (ACV) | Pays depreciated value | $600 (after depreciation) |
| Replacement Cost Value (RCV) | Pays to replace with new equivalent | $1,500 |
| Price difference | RCV costs 10-20% more in premiums | Worth it for most renters |
Always choose replacement cost coverage. The premium difference is only $1-$3/month, but payouts are dramatically better.
How Much Coverage Do You Need?
Personal Property Inventory Guide
| Category | Typical Value |
|---|---|
| Electronics (laptop, phone, TV, gaming) | $3,000-$8,000 |
| Furniture (bed, couch, table, chairs) | $3,000-$10,000 |
| Clothing and shoes | $2,000-$8,000 |
| Kitchen items (appliances, cookware) | $1,000-$3,000 |
| Books, media, decorations | $500-$2,000 |
| Sports/hobby equipment | $500-$5,000 |
| Jewelry and watches | $500-$5,000+ |
| Typical total | $10,000-$40,000 |
For high-value items exceeding standard sub-limits:
| Item | Standard Sub-Limit | Solution |
|---|---|---|
| Jewelry | $1,500-$2,500 | Scheduled personal property rider |
| Collectibles | $2,500 | Scheduled rider |
| Musical instruments | $2,500 | Scheduled rider |
| Firearms | $2,500 | Scheduled rider |
| Electronics (per item) | No sub-limit usually | Standard coverage |
How to Save on Renters Insurance
| Strategy | Potential Savings |
|---|---|
| Bundle with auto insurance | 5-15% |
| Higher deductible ($500 → $1,000) | 10-25% |
| Install security system/smart locks | 5-10% |
| Smoke-free building | 5-10% |
| Claims-free discount | 5-10% |
| Paperless/autopay discount | 2-5% |
| Compare quotes from 3-5 insurers | 10-30% |
| Loyalty discount (multi-year) | 3-8% |
Do You Need Renters Insurance?
| Situation | Need It? | Why |
|---|---|---|
| Landlord requires it | Yes | Lease requirement |
| Own more than $5K in stuff | Yes | Worth protecting |
| Could be sued (dog, pool access) | Yes | Liability protection |
| Live in disaster-prone area | Yes | Property protection |
| Live with minimal belongings | Maybe | Liability still valuable |
| Temporary housing (<3 months) | Maybe | Short-term policy or parents’ coverage |
Related: Average Home Insurance by State | Average Rent by State | Rent vs. Buy Calculator | Emergency Fund Guide
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