Renters Insurance By the Numbers (2024)

FAQs

Renters Insurance By the Numbers? ›

The average renter's insurance premium was $211 per year, or about $18 a month. The most popular deductible was $500. Only 18 percent of insured renters had noticed an increase in their premiums over the last year, compared to 43 percent of insured homeowners.

3.8 million: California has the highest number of households with renters insurance, at 3.8 million households across the state. 17 million: Across the state of California 17 million people rent. 40%: 40% of all homes across the state of California are comprised of renters.

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.

Typically, renters insurance provides four types of coverage: personal property coverage, renters liability insurance, guest medical expenses, and additional living expenses. Personal property or personal belongings coverage is what most people think of when it comes to renters insurance.

The average cost of renters insurance is about $15 to $20 per month¹. However, what you end up paying depends on a number of factors.

Key Findings. 55 percent of U.S. renters, or 61 million people, currently have renter's insurance policies. This number could rise to more than 65 million within the next year. 75 percent of insured renters are required by their landlords to obtain renter's coverage.

Insurance is all about risk, so customers that live in areas with higher risks of claims usually have to pay more for coverage. Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code.

You'll choose your deductible when you buy a renters insurance policy. A higher deductible means your claims will cost you less money out of pocket. Typically, renters insurance deductibles are $500 or $1,000, but companies often provide a range of options.

Renters insurance premiums can rise if you have a bad credit score, while good credit can lower them. Paying off debts can help you establish credit. Location: The cost of renters' insurance varies depending on the crime rate in your locality and proximity to a fire station from where you live.

What is typically not covered by renters insurance? ›

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy.

Standard renters insurance will likely only cover situations listed in your policy, like fire, theft, and vandalism. Natural disasters, like floods and earthquakes, are generally excluded, though you may be able to add extra protection for an additional cost.

Renters insurance policies are helpful in three ways: repairing or replacing your belongings if damaged, paying for living expenses if you're displaced, and covering damages to others.

In most cases, yes, your insurance premiums will increase after filing a renters claim. As it recalculates your premiums in the wake of a claim, your insurance company will generally consider the type, amount and frequency of claims. The more often you file claims, the riskier you are to insure.

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

After reviewing more than 20 of the largest renters insurance providers in the country, our team rated Lemonade 4.6 out of 5 stars based on our in-depth methodology.

44.1 million American households are renters. The average renter's insurance policy costs $180 per year. Recent data indicates over one-third of renter households are single tenants living alone, making up 38.1% of the total. Married couples account for 26.1% of renters, while 24.3% are other family arrangements.

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.

The Cost of Renters Insurance by Location

Insurers look closely at the property crime rate in your area, which affects your likelihood of filing a claim for stolen property. Your risk of natural disasters, such as tornadoes or hurricanes, also affects your cost of coverage.