Facts + Statistics: Homeowners and renters insurance (2024)

FAQs

What are some statistics about renters insurance? ›

55%: 55% of renter-occupied homes across the United States have renters insurance. 45 million: Across the United States there are roughly 45 million renter-occupied homes. 25 million: Of the 45 million tenant occupied homes, more than 25 million of them have renters insurance.

The main and most obvious distinction between renters insurance and homeowners insurance is that a homeowners policy safeguards the home's physical structure against covered perils while renters insurance won't protect the home or building occupied by the tenant.

Key Takeaways

Homeowners insurance covers the building you live in and associated structures such as garages. Most lenders will require you to take out homeowners insurance when taking out a mortgage. Renter's insurance is for tenants to cover liability and their personal property.

For example, 5.1% or 1 in 20 insured homes make a claim each year — for varying reasons. 97.2% of claims are due to property damage, such as wind and hail, theft and more, while 2.8% are due to liability, such as medical payments and property damage. Learn more about claims statistics in the table below.

How many people rent in the U.S.? According to our predictions based on the latest Census data, there could be over 109 million people renting homes in the U.S. as of 2023. The last official figures collected were in 2021, when over 102 million renters were confirmed.

Costs of homeowners insurance vs. renters insurance. In general, you can expect your renters insurance quote to be less than for homeowners insurance. That's because homeowners insurance includes the building structure itself, which isn't the case for renters insurance policies.

Renters insurance does not cover the dwelling structure like homeowners insurance does, which contributes to the lower premium. However, the cost of your renters insurance policy will vary, depending largely on the amount of coverage you buy.

Landlord insurance and homeowners insurance do not cover your tenants' personal belongings. That's why you may want to make renters insurance a condition of your lease. Renters insurance may help protect your tenants' possessions, and also provide them with some liability protection.

Homeowners and renters insurance are similar. Both cover your personal property (your belongings) for problems like fire and theft. And they both cover you if you are responsible for damages to someone else.

Is the stolen property covered by homeowner's or renter's insurance? ›

Does homeowners insurance cover theft from a home? Typical homeowners (including renters and condominium) policies include coverage for your personal property. Loss due to theft is generally included as part of the personal property protection.

Make sure you're covered for the right amount – your home insurance policy should cover the full value of your home in case of damage or destruction. When it comes to home insurance, you want to make sure you're getting the right amount of coverage.

The 80% rule dictates that homeowners must have replacement cost coverage worth at least 80% of their home's total replacement cost to receive full coverage from their insurance company.

While an intense hurricane season has the potential to cause premium increases next year, Insurify predicts Americans will see a more modest premium increase of 6% in 2024, putting the average annual homeowners insurance rate at $2,522 by the end of the year.

Living in a high-risk location, having hazardous home features, home maintenance issues, your home's history of insurance claims, and more can be reasons an insurance company may determine a house to be uninsurable.

How Much Does Renters Insurance Cost? Renters insurance costs an average of $157 a year for a policy with $15,000 of personal property coverage. The average cost of renters insurance for a policy with $30,000 is $199 annually, and a $50,000 policy costs an average of $260 a year.

Renters insurance is relatively inexpensive. According to NerdWallet, the average renters policy costs about $15 per month for up to $30,000 in personal property coverage. That's solid coverage for less than the cost of a few cups of coffee a week.

The market size, measured by revenue, of the Renters' Insurance industry was $4.5bn in 2023. What was the growth rate of the Renters' Insurance industry in the US in 2023? The market size of the Renters' Insurance industry increased 1.3% in 2023.

What is the market size of the Renters' Insurance industry in the US? The market size of the Renters' Insurance industry in the US is measured at $4.5bn in 2023.