The average renters insurance cost in the U.S. is about $171 a year, or roughly $14 a month, according to the latest NAIC figures published by the Insurance Information Institute. That’s for 2022, the most recent year the regulators have released.
I paid almost exactly that for my first policy, $14.25 a month, and for two years I wondered if I was throwing it away. Then the guy upstairs left his bathtub running and it came through my closet ceiling. So let’s look at the real price, the things that push yours up or down, and how I’d budget for it if I were signing my first lease tomorrow.
The average renters insurance cost, by the numbers
The cleanest national number comes from the National Association of Insurance Commissioners, the group of state insurance regulators. The Insurance Information Institute republishes it in its homeowners and renters insurance fact sheet. For 2022, it shows:
- National average: $171 a year, which works out to about $14.25 a month.
- Most expensive state: Mississippi at $262 a year.
- Next most expensive: Louisiana at $243 and Alabama at $219.
- Cheapest state: North Dakota at $123 a year.
- Also cheap: South Dakota at $129 and Minnesota at $135.
Two things to keep in mind. These are average premiums people paid, not quotes, so they include people with bare-bones policies and people with a lot of coverage. And the data runs a few years behind, because regulators collect it from insurers after the fact. Prices have moved since 2022, so treat $171 as a floor for your planning, not a promise.
Renters insurance is the cheapest bill I have that has ever paid me back more than I put in.
What renters insurance covers
A lot of people skip it because they think “my stuff isn’t worth much.” That was me. But a standard renters policy covers more than your stuff.
- Your belongings. Furniture, clothes, laptop, kitchen gear, bikes. Even if your apartment is small, replacing everything usually runs into the thousands.
- Liability. If someone gets hurt in your place, or you accidentally damage someone else’s unit, this pays for it up to your limit.
- Loss of use. If a fire or leak makes your apartment unlivable, it can pay for a hotel and extra meals while it’s repaired.
Your landlord’s insurance covers the building. It does not cover your couch, and it usually doesn’t cover you being sued. That’s the gap a renters policy fills.
What it typically doesn’t cover: floods and earthquakes. Flood damage needs a separate flood policy, and the federal flood program run by FEMA sells policies to renters that can cover the contents of your home. If you live somewhere that floods, read that page before you assume you’re covered.
Why your quote might not match the average renters insurance cost
When I shopped for a new policy after moving, my quotes ranged from $11 to $29 a month for what looked like the same apartment. These are the things that usually explain the gap:
- Your state and ZIP code. Hurricane states and areas with more theft and storm claims cost more. That’s why the Gulf states top the NAIC list.
- How much personal property coverage you pick. More coverage, higher premium. It’s the biggest dial you control.
- Your deductible. A $1,000 deductible costs less per month than a $500 one, but you pay more out of pocket when something happens.
- Replacement cost vs. actual cash value. Replacement cost pays what it takes to buy a new version. Actual cash value pays what your used item was worth, which for a 4-year-old laptop isn’t much.
- Your claims history and the building itself. Older buildings, past claims and some dog breeds can all push the price up.
The cheapest quote I got was actual cash value with a $1,000 deductible. It looked great until I did the math on my laptop. I went with the $17 policy instead.
How I picked my coverage amount (without guessing)
The first time, I clicked the default and moved on. Now I do this, and it takes about an hour:
- Walk your apartment with your phone. Record a slow video of every room, opening closets and drawers. This doubles as proof if you ever file a claim.
- Price the big stuff. Bed, couch, laptop, TV, bike. Write down what it would cost to buy each one again today, not what you paid.
- Estimate the rest by room. Clothes, kitchen, books, bathroom. I was shocked that my closet alone came out around $4,000.
- Add it up and round up. My total was about $21,000, so I picked $25,000 in personal property coverage.
- Choose a deductible you could pay this week. If your emergency fund is small, a $500 deductible is safer than $1,000 even if it costs a few dollars more a month.
For liability, most policies start at $100,000. Going higher is often cheap, so get a quote both ways before you decide.
The claim that changed my mind
The leak happened on a Saturday. By the time I got home, water was dripping through the light fixture in my closet. It ruined a pile of clothes, two pairs of boots, a rug and the laptop bag I’d left on the floor, laptop inside.
I filed the claim with my phone video and a list. After my $500 deductible, the insurer paid a little over $2,300. I had paid about $340 in premiums by then. I’m not saying everyone will have a claim. Most years, you won’t. But if I hadn’t had the policy, that $2,800 would have gone straight onto the credit card I was trying to pay off.
That’s how I think about it now: a $14-ish monthly bill that keeps one bad Saturday from undoing a year of debt payoff.
Cozy tip: If you pay your renters insurance yearly, you’ll often get a small discount. Divide the yearly premium by 12 and tuck that amount into a sinking fund each month so the renewal never surprises you. The free printable budget template has a sinking fund page with room for exactly this kind of bill.
What the average renters insurance cost looks like in your monthly budget
Here’s a worked example of how the same renter’s monthly cost can change depending on the choices above. The prices are illustrative, built around the NAIC average, so your quotes will differ.
| Choice in this example | Coverage | Deductible | Example monthly cost | What you’d get back on a $3,000 loss |
|---|---|---|---|---|
| Bare minimum | $15,000, actual cash value | $1,000 | $11 | Less than $2,000, after depreciation |
| Close to average | $25,000, replacement cost | $1,000 | $14 | $2,000 |
| Lower deductible | $25,000, replacement cost | $500 | $17 | $2,500 |
| Extra coverage | $40,000, replacement cost | $500 | $22 | $2,500 |
Look at the first two rows. Three dollars a month is the difference between getting a used-item check and getting enough to buy new things. That’s the line I’d spend money on first.
Ways to pay less for renters insurance
Renters insurance is already cheap, but these have shaved real money off my bill:
- Bundle with your car insurance. Many insurers discount both policies. When I bundled, my renters policy went from $17 to about $12 a month.
- Ask about safety discounts. Smoke detectors, deadbolts and sprinklers in the building can lower the price.
- Pay the year up front. Some insurers knock a bit off if you skip monthly billing.
- Re-shop every renewal. Prices change, and loyalty isn’t always rewarded. It takes 20 minutes with your current declarations page in hand.
If you’re working out what to spend on your whole housing picture, my guide on how much to spend on rent pairs well with this one. And if you ever buy a place, the average home insurance cost is a very different, much bigger number, because a homeowner is insuring the building too.
Why your premium changes at renewal
The first year I had renters insurance, my renewal came in $2 a month higher and I panicked a little. Nothing about me had changed. That’s normal, and it helps to know why it happens.
- Claims in your area. Insurers price by location, so a bad storm season or a run of break-ins nearby can nudge everyone’s rate up, even renters who never filed a claim.
- Your own claim. After my leak claim, my next renewal went up about $3 a month. It was still worth it, but it’s real.
- Rising replacement costs. When furniture and electronics cost more to replace, coverage costs more to provide.
- Your move. A new ZIP code is a new price, sometimes lower. When I moved across town, my quote dropped by $4 a month.
Here’s my renewal routine now. About 30 days before the policy renews, I pull up my declarations page, check that my personal property limit still matches what I own, and get two other quotes for the same coverage. Most years I stay put. One year I switched and saved $48. Either way, it takes less time than a load of laundry.
If you’ve bought anything big since last year, like a new laptop or a good bike, renewal is the moment to raise your coverage. A policy that fit $15,000 of stuff won’t stretch to cover $25,000.
Common mistakes with renters insurance
- Assuming the landlord’s policy covers you. It covers the building, not your belongings or your liability.
- Picking the deductible by price alone. A $1,000 deductible only helps if you could pay $1,000 the week something happens.
- Not knowing your policy skips floods. Standard renters insurance usually excludes flood damage, so check whether you need separate contents coverage.
For more numbers on what everyday bills cost Americans, see my budgeting statistics roundup, or browse the budgeting section for more help building your monthly plan.
Frequently Asked Questions
How much is renters insurance per month?
About $14 a month on average. The NAIC’s latest national figure, published by the Insurance Information Institute, is $171 a year for 2022. Your price depends on your state, coverage amount and deductible.
Is renters insurance worth it?
For most renters, yes. It covers your belongings, your liability if someone is hurt in your home, and extra living costs if your place becomes unlivable. One claim can easily pay back several years of premiums.
What states have the most expensive renters insurance?
In the NAIC’s 2022 data, Mississippi was the most expensive at $262 a year, followed by Louisiana at $243 and Alabama at $219. North Dakota was the cheapest at $123.
Does renters insurance cover flooding?
Usually not. Standard renters policies exclude flood damage. Renters can buy flood coverage for their belongings through FEMA’s National Flood Insurance Program.
How much renters insurance coverage do I need?
Add up what it would cost to replace everything you own at today’s prices, then round up. Many renters land between $20,000 and $40,000 in personal property coverage, with $100,000 or more in liability.
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