What Is the Average Cost of Renters Insurance?

This is an overview of how much renters insurance can cost. Learn the average cost of renters insurance, the factors that affect the price, and more here.
Written by Brady Klopfer
Reviewed by Carrie Adkins
Looking for renters insurance, but worried about the cost? Here's how much renters insurance may cost you, plus a couple of tips to lower the price.
If you're moving into a new place, you probably want to make sure that your possessions are covered in case of any disasters or emergencies that might arise. If you're a homeowner, you might already have this in the form of
homeowners insurance
—but if you're renting your new home, you may want to look into
renters insurance
.
Renters insurance can save you a lot of money and hassle if something goes wrong in your home. Still, many people with expensive car and health insurance premiums think it’s not worth it to dole out a ton of money just for renters insurance. But that’s where the good news comes in: Renters insurance is nowhere near those price tags. Read on to find out just how affordable it can be.
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How much does renters insurance cost?

The cost of renters insurance can vary, but it almost always lands between $100 and $300 per year. The average monthly cost for renters insurance is about $15 per month, which ends up at about $180 per year.
So while the thought of adding another insurance package might sound daunting, the cost of a year's worth of renters insurance is still far below the cost of other types of insurance.

What does renters insurance cover?

In general, renters insurance covers three things: personal property, personal liability, and additional living expenses.
Personal property covers anything you own that is stored in your home, even if they’re damaged or stolen away from your home. Personal liability covers physical damage that you sustain in your home. And additional living expenses cover the cost of living elsewhere while your home is returned to a livable state, in the event of a disaster. For example, if your home was destroyed by a fire, your renters insurance would cover the cost of living in a hotel while your home was repaired.

What affects the cost of renters insurance?

The biggest factor in determining renters insurance price is your location. If you live somewhere with extreme weather conditions, such as floods or tornados, you’re more likely to file a claim, which makes your policy more expensive. As a result, homes in the south usually have the highest premiums.
As with other types of insurance, the amount of coverage you opt for influences the price, as does the size of your deductible. Finally, a good
credit score
and owning fewer expensive items will go a long way towards keeping your rates down.

How to lower the cost of your renters insurance

Many insurance companies will offer you a discount if you
bundle
your other insurance policies, so you may want to look at bundling your car and renters insurance. And some companies will lower your rates if you provide proof of certain security measures, such as deadbolt locks, home surveillance systems, and automatic sprinklers.
Finally, raising your deductible is a surefire way to lower the cost of your monthly premiums.

Do you need to have renters insurance?

You are not legally required to carry renters insurance when renting property. However, some landlords will not lease to renters unless they provide proof of insurance. When in doubt, always check with your landlord!
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Renters insurance can be a helpful, affordable way to make sure that you and all of your belongings are protected from any emergency or disaster. If you live somewhere prone to extreme weather, or if you simply want to keep your possessions safe, you may want to see whether renters insurance is the right choice for you.

FAQs

What does renters insurance cost in NYC?

Although NYC is often an expensive city, the cost of renters insurance is only $15 per month or $180 per year, just like the national average. Other cities like Miami have a higher average annual cost (around $510) due to frequent flooding and hurricanes.

What is replacement cost renters insurance?

Replacement cost renters insurance will cover an exact item or original value of an item that was destroyed. For example, let's say you had a $1,000 computer. A replacement-cost policy would cover you for the exact same computer model, or would reimburse you $1,000. If you had an actual cash value (ACV) policy instead, and your computer had depreciated to $700, you would only be reimbursed $700.
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