How Much Is the Average Renters Insurance?
The average cost of renters insurance in 2015 was $188 per year in the United States. Renters insurance costs are influenced a lot by where you live and considering the size of the U.S., this can vary widely. Both your neighborhood and state will influence your rental insurance costs. For example, an average renter can pay $114 a year to insure their rented apartment or house in North Dakota. However, this figure would average $262 a year in Mississippi.*
Typical renters insurance costs are between $15 and $30 per month ($180 and $360 per year).* This is an estimate to give renters of apartments and homes an idea of the cost of renters insurance. Your individual renters insurance quote will depend on the location of your rental unit, the amount of liability protection you choose, and any additional riders or options for your personal property added.
For example, having an address in the middle of tornado territory or near a flood or hurricane area can drive the average rental insurance cost up compared to locations not in those areas. If your apartment is in a complex that has a history of multiple claims, your renters insurance
premiums will likely be higher. Also, Increasing reimbursement levels for valuable jewelry or electronics or getting extra liability coverage will increase average renters insurance costs. Keep in mind that liability coverage will help cover the costs associated with another person’s injury on and off your property, and for damage done to others. For example, say you throw a dinner party and one of your guests trips, falls and hurts their leg on an uneven surface in the apartment. Your liability coverage will help pay the medical bills needed for healing their leg.
Renters Insurance Cost Varies Based on Four Factors
Renters insurance rates can depend on factors such as the geographic location of the rental apartment or home and the estimated value of your personal items if you were to replace all of them. One of The Hartford’s experienced insurance agents can help you determine an estimate of the value of your personal belongings and give you a renters insurance quote online or over the phone.
Location is a major factor for determining the cost of your renter’s insurance. The location of your apartment can tell a lot about what may happen to the property and the individual in the future. For example, rates go down for rental properties located in an area with less crime. In contrast, rental properties located in an areas prone to natural disasters such as earthquakes, tornados or hurricanes will likely have higher rates. For example, properties in Florida or Texas may have higher rates due to risk of hurricane damage. Determining the rate involves expected future happenings based on your rental location and its property coverage.
Rental Insurance Type of Coverages
Rental insurance can fluctuate depending on what part and how much of your personal property you want to be covered. For example, if you are going to cover $30,000 of your personal property or belongings, you would expect to pay more than if you wanted to cover only $10,000. When choosing what you want to include in your rental insurance coverages
, take an inventory of your assets. This will help you understand the level of coverage you need for your personal belongings.
To effectively inventory your assets, you will need to document items of value. Start by making a list of items. From there, take photos and videos of each item. This can help prove ownership of items in the event of a loss. Also, include descriptions, serial numbers, receipts, appraisals, the date each item was purchased and how much it cost. Be sure to include any warranties you have for items.*
Inventories should include items such as furniture, appliances, electronics and special equipment. Clothing, books and kitchen utensils can be included by tallying the number of each type you own. Remember to store your inventory in an accessible place and create a back up copy. Google Docs is a good option for your backup. Over time, your assets will change and evolve. This means that you will need to update your inventory regularly.*
Insurance or Credit Score
Credit and insurance scores are used to calculate your renters insurance premium, but only in states that allow it. Your insurance score is generally derived from information on your credit report. Insurance companies like The Hartford use this information because historical data suggests a correlation between your credit history and insurance risk. The higher your credit score, the lower the cost of your renters insurance premiums.
How to Save on Your Renters Insurance Cost
When you buy both your rental and car insurance
with The Hartford, you save on both policies. With the AARP®
Auto & Rental Insurance Program from The Hartford, you can receive savings of up to 20% on the cost of your renters insurance
and up to 5% on your auto insurance.
24-Hour Security Service Credit
Want to save even more? If your apartment or rental unit features a 24-hour security service or has a monitored security system, you could receive a credit on your renter insurance rates. Verifying this can be as easy as checking with your landlord.
Rental Insurance Renewal Credit
Continue to renew your affordable home renters insurance policy with the AARP® Rental Insurance Program from The Hartford and watch your savings grow.
Availability of credits or savings may vary by state or policy plan.
Bundling savings are not available in Hawaii and Massachusetts.
* Article from “Average Premiums for Homeowners and Renters Insurance by State,” Insurance Information Institute, 2015, https://www.iii.org/table-archive/21407
2 Article from “Consumer Alert,” National Association Insurance Commissioners, https://www.naic.org/documents/protecting_your_belongings_with_renters_insurance.htm
3, 4 Article from “Creating a Photo and Video Home Inventory,” Extra Mile, September 20, 2017, https://extramile.thehartford.com/home/photo-video-home-belongings-inventory/