How Much Is Renters Insurance?

L.A. Insurance has conducted in-depth research on renters insurance rates in 2025. We found that the average cost can vary widely depending on several factors. One of the most important is location. For example, someone living with family in a two-bedroom apartment in Montana will likely pay much less than the same person living in Michigan.

Other factors like the rate of property crime in your area, the amount of coverage you choose, whether your policy uses actual cash value or replacement cost, your deductible, claim history, pet ownership, home inventory, and insurance provider can also influence your renters insurance cost.

The national average cost of renters insurance in 2025 is $23 per month or $276 per year, based on data from sources like ValuePenguin, NerdWallet, Forbes, III, and Progressive. Your rate may be slightly higher or lower than the U.S. average rate, depending on your situation.

Keep reading to learn more about the cost of renters insurance. In this article, we’ll cover:

• Average Renters Insurance Cost in 2025  
• How Much Is Renters Insurance in Your State?  
• How Much Does Renters Insurance Cost in Your City?  
• What Factors Affect Renters Insurance Rates?  
• How to Lower Your Renters Insurance Cost?  
• How Much Renters Insurance Do You Need?  
• Bottom Line and FAQs about the Cost of Renters Insurance

Average Renters Insurance Cost in 2025

So, how much does renters or tenant insurance cost? On average, it's about $23 per month or $276 per year in the U.S. But that's just a general estimate. The exact amount varies from person to person.

The Insurance Information Institute (III) reported in 2021 that the average premium was $14 per month or $170 annually. Since then, rates have gone up in many areas. In some states, renters now pay around $30 per month.

According to Forbes, you can expect to pay about $13 per month or $157 per year for $15,000 of personal property coverage. If you opt for $30,000 or $50,000 in coverage, the average yearly cost rises to $199 and $260, respectively.

Based on our findings, most renters in 2025 can expect to pay somewhere between $12 and $30 per month, or $144 to $360 annually, depending on their location and coverage needs.

Some insurers may offer much cheaper rates, like $4 per month or $16 a year. In that case, you should be able to successfully compare the coverage amount, deductible, and other factors to see whether that meets your needs. You should also keep in mind that this rate can go high for renters with higher coverage, poor credit, or a low deductible.

But even at the higher end, renters insurance remains one of the most affordable types of property insurance in the U.S. It’s also one of the smartest investments you can make to protect your stuff.

If you’re in Michigan, Colorado, Texas, Nevada, Florida, or any other state looking for affordable renters insurance, contact L.A. Insurance today. We’re the most affordable insurance agency around, offering the cheapest renters insurance quote instantly. Get a quote online or call for an inquiry at (800) 893-9393.

How Much Is Renters Insurance in Your State?

Renters insurance costs vary a lot from one state to another. Some states are more prone to wildfires, floods, or theft. Others have stricter insurance laws or higher housing costs.

For example, renters in Louisiana or Mississippi may pay over $30 a month, while those in Wyoming or Wisconsin may pay under $16. Your state’s average also reflects factors like property crime rates, climate risks, and urban density.

As of July 2025, the average cost of renters insurance by state in the United States is as follows:

More>> How Much Does Renters Insurance Cost in Michigan?

5 Cheapest States for Renters Insurance

Some states offer surprisingly low renters insurance rates. These are often low-crime areas with fewer natural disasters and affordable housing.

If you live in one of these states, you might only spend $16 to $20 per month. Here are the five cheapest states for renters insurance in 2025:

1. Wyoming: $16/month
2. North Dakota: $16/month
3. Montana: $16/month
4. New Hampshire: $17/month
5. Vermont: $17/month

5 Most Expensive States for Renters Insurance

On the other hand, some states are much more expensive. High property crime, storm risk, and insurance regulation all play a role. In these places, renters insurance can easily cost around $30 or more.

Here are the five most expensive states in 2025:

1. Louisiana: $36/month
2. Arkansas: $35/month
3. Georgia: $33/month
4. Mississippi: $32/month
5. Alabama: $31/month

How Much Does Renters Insurance Cost in Your City?

Where you live has a big impact on how much you pay. Some cities are more expensive due to crime, weather risks, or cost of living. Others are cheaper simply because they’re safer or less populated.

For example, if you’re in New Orleans, you will likely pay more than someone in Durham, North Carolina. Below is a table showing average renters insurance costs in select U.S. Cities in 2025: 
 

Note: These rates are based on a standard policy with $30,000 in personal property coverage and a $500 deductible. Your actual price may vary based on your ZIP code, credit score, and chosen coverage limits.

What Factors Affect Renters Insurance Rates?

As you have read, renters insurance rate in the United States isn’t fixed for everyone. It can change for each individual depending on several factors, including your location, lifestyle, and even your dog.

Here are the key factors that determine how much you’ll actually pay for renters insurance in 2025:

• Your ZIP code and city crime risk  
• The amount of personal property coverage
• Your deductible
• Type of coverage: actual cash value vs. replacement cost
• Your credit score (in most states)
• Claim history
• Type of residence and its safety features
• Pet ownership
• Insurance provider and available discounts

Location and ZIP Code

Where you live matters more than you think.

If your city of residence has a high property crime rate or is prone to natural disasters like wildfires, floods, or hurricanes, this will cost more to insure your rental space.

Also, insurers consider how close you’re to a fire station or fire hydrant. That can bring your rate down.

For example:

• Renters in Detroit, MI, pay up to $31/month
• In contrast, Durham, NC, renters pay as little as $10/month

Even a different ZIP code within the same city can affect your premium.

Personal Property Coverage Limits

The more stuff you insure, the more you’ll pay.

Renters' policies typically start at $15,000 in coverage and go up to $100,000 or more. Here’s how much the cost increases with coverage:

You can adjust this based on your home inventory. If you have more electronics, furniture, or valuables, you can go for higher limits.

Renters Insurance Deductible

A deductible is the amount that you agree to pay to your insurer before your insurance kicks in. The higher the deductible, the lower the premium. Simple. Check the following table to see how your deductible affects your renters insurance cost:  

You should choose your deductible based on your budget and risk tolerance. If you’re renting in a safe city or there’s not much chance of weather or crime-related risks, you can go for a higher deductible.

Type of Coverage: Actual Cash Value (ACV) Vs. Replacement Cost

What kind of coverage you choose matters.

• Actual Cash Value (ACV) pays you for what your items are worth now (depreciated).
• Replacement Cost Coverage (RCC) pays for brand-new replacements.

RCC costs about 14% more, but it’s often worth the peace of mind.

Example: If your 5-year-old laptop is stolen, ACV might pay $200. RCC would give you $800 to buy a similar new one.

Your Credit Score

Most insurers use a credit-based insurance score to set your rate. Better credit usually means lower rates. Here’s how credit impacts renters insurance costs:

Please note that the credit-based insurance pricing system isn’t factored in every state. As of 2025, this doesn’t apply in states like California, Hawaii, Maryland, Michigan, Massachusetts, Oregon, or Utah, where using credit for insurance pricing is banned.

Claim History

If you have filed renters insurance claims in the past 3 to 5 years, expect to pay more than average.

Even one claim, especially for theft, water damage, or dog bite liability, can raise your rate. This happens because insurers view frequent claimants as higher risk.

Pro Tip: Staying claim-free can make you eligible for loyalty or safe-renter discounts over time.

Type of Home and Safety Features

If you live in a gated complex or a newer high-rise, you’ll most likely face a relatively lower rate.

On the other hand, renting a single-family home may be more expensive. That’s because homes are prone to break-ins and structural damage.

While setting renters insurance rates, insurers also look at safety features like:

• Smoke detectors
• Burglar alarms
• Sprinklers
• Fire extinguisher

If your building has these safety features, this might earn you discounts of 5% to 15%.

Pet Ownership

If you’re a pet parent, you might have to pay extra for renters insurance compared to those who don’t own a pet.

Certain insurance companies charge more or ask you to shop for extra liability coverage for your pet. For instance, if you own a certain dog breed, such as:

• Pit bulls
• Rottweilers
• Dobermans
• Wolf hybrids

You’ll probably face higher rates. Besides, if your dog has a bite history, it may raise red flags for insurers. However, if your pet is well-trained and non-aggressive, some carriers may still offer full coverage.

Insurance Provider and Discounts

Every insurance company is different. They asses the policyholders and other risk factors differently. Some may offer discounts as well. That’s why the rate varies based on insurance provider.

Some renters insurance companies offer generous discounts if you:

• Bundle with auto insurance
• Set up automatic payments
• Go paperless
• Stay claim-free for years

If you think you’re paying too much for renters insurance, keep reading. We’ll discuss how you can reduce renters' insurance costs in the following section.

How to Lower Your Renters Insurance Cost

Even though renters insurance is already affordable, there are smart ways to cut your monthly premium even more. You don’t have to sacrifice coverage to save. You just need to understand what affects the cost and how to use that to your advantage.

Below are the best, research-backed ways to lower your renters' insurance rates in 2025:

1. Increase Your Deductible

Your deductible is what you pay out of pocket before your insurance kicks in. The higher the deductible, the lower your monthly cost.

• A $1,000 deductible is cheaper than $250.
• Only increase it if you can afford to pay it during a claim.
• This change alone can save you 10–20% yearly.  

2. Improve Your Credit Score

Most insurers use your credit score (or insurance score) to set your rate. Better credit is equal to lower risk, which means a lower price. Tips to improve your credit-based insurance score:

• Pay your credit card and debit card bills on time
• Lower your overall debt
• Keep credit lines open and active

If your state allows it and if you’re a renter with excellent credit, you can pay up to 65% less.

3. Bundle Your Policies

If you already have auto insurance or even pet insurance, bundling them with renters insurance can get you a multi-policy discount.

For example, pairing your vehicle insurance and renters coverage through the same company often results in lower rates from top insurance brands like L.A. Insurance. 

4. Install Safety Features

Insurance companies reward renters who reduce risk. Adding safety devices may earn you a discount.

Consider installing:

• Smoke detectors
• Burglar alarms
• Fire extinguishers
• Smart locks
• Water sensors (to detect leaks or water damage)

If your rental already includes these, let your insurer know.

5. Choose a Lower-Risk ZIP Code (if possible)

Your ZIP code affects your rate. Living near a fire station or in a low-crime area can reduce your premium.

If you’re planning to move, compare insurance quotes for different neighborhoods before signing your lease.

6. Avoid Small Claims When You Can

Too many claims, even small ones, will raise your future insurance cost. High-frequency claimants are seen as risky.

Instead, consider covering minor losses out of pocket. That keeps your insurance record clean, which qualifies you for claim-free discounts.

7. Limit High-Value Add-ons

Scheduling high-value items (like jewelry or collectibles) increases your insurance coverage, but also raises your cost.

Only add what’s necessary. Or get separate property insurance or investment-specific coverage for rare items if needed.

8. Ask About Discounts

You’d be surprised how many renters don’t ask. Every insurance company has different discount programs.

Ask about:

• Loyalty discounts
• Paperless billing
• Paying your premium upfront
• Security system credits
• Senior or student discounts
• Living in a gated community

Even being a non-smoker could qualify you for a lower insurance policy rate.

9. Shop Around and Compare Quotes

Never settle on the first insurance quote you get. Use online tools to compare renters insurance across multiple providers.

You should try to keep the same coverage limits and policy details when comparing. That way, you can accurately measure who offers the best deal.

10. Use Only the Coverage You Need

If your home inventory is worth $20,000, don’t buy a policy with $50,000 in personal property coverage. You’ll only pay for what you don’t need.

Make sure to evaluate how much coverage makes sense based on your lifestyle, location, and belongings. Then customize your plan accordingly.

By following just a few of these tips, most tenants can cut their yearly cost by 10% to 30%, without losing important protection.

How Much Renters Insurance Do You Need?

Renters insurance doesn’t just cover your stuff. It protects your legal liability, your living space, and even your guests. To figure out how much coverage you need, you first need to know the parts of a typical renters insurance policy.

1. Personal Property Coverage

This covers your belongings, furniture, clothes, electronics, and more, in case of theft, fire, smoke, vandalism, water damage, or other covered events. Most renters need $20,000 to $50,000 in personal property coverage, depending on how much you own. You can calculate this by doing a simple home inventory.

2. Liability Insurance for Renters

This pays for damages or injuries you accidentally cause to others. For example, if your dog bites a visitor or someone slips into your apartment. Most policies include $100,000 in liability insurance, but if you have assets or a high-risk pet, aim for $300,000 or more.

3. Medical Payments to Others

This covers small medical bills if someone gets hurt in your rental, no matter who’s at fault. Most policies include $1,000 to $5,000 in medical payments coverage. It's helpful if a guest has a minor injury, like a twisted ankle.

4. Loss of Use (Additional Living Expenses)

Also called loss of use, this covers hotel stays, meals, and other costs if your rental becomes unlivable due to damage (like a natural disaster or flood, if covered). Most renters choose 20% to 30% of their personal property limit for this. For example, if your property coverage is $30,000, you’ll have about $6,000 to $9,000 in loss of use coverage.

5. Optional Coverages

Some renters may need to add extra protection for:

• Identity theft
• Expensive jewelry or collectibles
• Pet insurance or breed-specific liability

Flood insurance, especially if living in high-risk zones (note: this is not included in standard property insurance).

Quick Table on How Much Renters Insurance You Need

If you're not sure how much to choose, start with a basic renters insurance quote and customize from there. Compare plans from different insurance companies.

How Much Is Tenant Insurance: The Bottom Line

Tenant insurance is one of the most affordable types of property insurance available in the United States today. In 2025, the average cost is around $23 per month or $276 per year, depending on where you live and how much coverage you choose. But rates can range from $12 to $30+ per month based on factors like location, credit score, deductible, and so on.

FAQs About Renters Insurance Cost in 2025

How much is renters insurance for $100,000 in coverage?

Renters insurance with $100,000 in personal property coverage usually costs between $25 and $35 per month, depending on your location, deductible, and provider.

How much do you have to pay per month for renters insurance?

Most renters pay around $12 to $30 per month in 2025. The national average is $23 per month, but your actual rate may vary.

How much is renters insurance for a one-bedroom apartment?

For a one-bedroom unit, renters typically need $25,000 to $40,000 in coverage. Expect to pay $15 to $25 per month, on average.

What is the most common amount for renters insurance?

Most renters choose around $30,000 in personal property coverage and $100,000 in liability insurance, which balances price and protection.

What information do I need for a renters insurance quote?

You’ll need your address, ZIP code, coverage amount, deductible preference, details about any pets, and a rough home inventory value.

Is renters insurance more expensive than home insurance?

No. Renters insurance is much cheaper. While homeowners insurance often exceeds $100/month, renters pay about $23/month, on average.

Why do renters insurance rates vary by state?

Rates vary due to weather risks, crime rates, housing costs, and state laws. High-risk states like Louisiana have higher average premiums.

What’s the difference between renters insurance and home insurance?

Renters insurance covers only your belongings and liability, not the building. Home insurance covers the structure, contents, and property as a whole.

How to get a renters insurance quote and compare?

Start by visiting the websites of trusted insurance companies or using online comparison tools. Enter your ZIP code, coverage needs, and details like pet ownership or security features. Compare quotes side by side, checking for coverage limits, deductibles, and available discounts before choosing the best value.

References:

1. Bishop, L. (2025, July 20). Average cost of Renters insurance (2025). ValuePenguin. https://www.valuepenguin.com/average-cost-renters-insurance  
2. Facts + Statistics: Renters insurance | III. (n.d.). https://www.iii.org/fact-statistic/facts-statistics-renters-insurance
3. Metz, J. (2025, July 21). Average renters insurance cost for 2025. Forbes Advisor. https://www.forbes.com/advisor/renters-insurance/how-much-is-renters-insurance/
4. Corporation, P. (2025, July 22). How much is renters insurance? https://www.progressive.com/answers/average-renters-insurance-cost/
5. Schlichter, S. (2025, July 24). The average renters insurance cost. NerdWallet. https://www.nerdwallet.com/article/insurance/how-much-is-renters-insurance