How Much Is Renters Insurance? Average Cost in 2026
Renters insurance is one of the cheapest insurance policies you can buy — and one of the most misunderstood. Many renters skip it because they assume their landlord’s insurance covers them, or because they assume it costs far more than it does. Neither is true: your landlord’s policy covers the building, not your belongings, and the average policy costs roughly what a streaming subscription does each month.
How much is renters insurance? The short answer
On average, renters insurance costs about $14 a month — around $171 a year. That figure comes from the National Association of Insurance Commissioners (NAIC), as reported by the Insurance Information Institute (III): the average renters premium in the United States was $171 in 2022, the latest year in that published series. A later NAIC report put the 2023 average at $173 a year, or roughly the same monthly amount.
The NAIC’s own consumer guide gives a wider, more practical range: premiums average between $15 and $30 a month, depending on where you live, the size of your rental, and how much you own. That range is the more useful number, because almost nobody pays the national average exactly. So budget roughly $15 a month for a basic policy, and expect to pay more in a high-cost state, with higher limits, or with a low deductible.
What that money buys
Before judging the price, it helps to know what a standard renters policy — known in the industry as an HO-4 policy — includes: three main protections in the same policy.
Personal property coverage pays to repair or replace your belongings if they are stolen or damaged by a covered event, such as fire, smoke, lightning, theft, vandalism, windstorm, or water damage from a burst pipe. That means furniture, clothing, electronics, and kitchenware. Coverage also usually follows your belongings away from home: property stolen from your car, for example, is generally covered, though often only up to about 10% of your personal property limit.
Liability coverage pays if you are legally responsible for injuring someone or damaging their property — a guest who slips and falls in your apartment, or water from your overflowing bathtub damaging the unit below. It also pays your legal defense costs, up to the policy limit. Liability limits generally start at about $100,000, and some experts recommend at least $300,000 of protection, according to the III. A smaller amount of no-fault medical coverage, usually $1,000 to $5,000, can also pay a guest’s medical bills directly if they are injured in your home.
Additional living expenses (ALE) pays the extra cost of living elsewhere — hotel bills, temporary rentals, restaurant meals — if a covered disaster makes your rental uninhabitable.
For the full picture of what is and is not included, see What Does Homeowners Insurance Cover? A Complete Guide to Coverage and Exclusions — the coverages work in a similar way, except a renters policy does not insure the building itself.
What affects the cost of renters insurance?
No two renters pay the same price. These are the factors that matter most.
Where you live. Location is usually the biggest factor. States with higher crime rates, more severe weather, or higher repair costs charge more, and a policy in a dense city center will usually cost more than the same coverage in a quiet suburb.
How much personal property you cover. A typical quote uses $20,000 to $30,000 of personal property coverage. Raising that limit costs relatively little per extra dollar of coverage, so underinsuring to save a few dollars a month is usually a bad trade: if a fire destroys everything you own, the limit is all you get. The right amount is the cost of replacing everything you own, which you can work out with a room-by-room home inventory.
Your liability limit. Standard liability starts at about $100,000. Raising it to $300,000 — the level some experts recommend — typically adds only a few dollars a month.
Your deductible. The deductible is the amount you pay toward a claim before your insurance starts paying. A $500 deductible is standard. The III notes that raising it to $1,000 may save as much as 25% on your premium — but only choose a deductible you could actually pay tomorrow, because you pay it every time you file a claim.
Replacement cost vs. actual cash value. Actual cash value (ACV) pays what your belongings were worth at the time of the loss, after subtracting depreciation for age and wear. Replacement cost pays what it costs to buy the same item new today. The III says replacement cost coverage costs about 10% more than actual cash value coverage, but it can be well worth the extra cost — a five-year-old television is worth far less under ACV than it costs to replace. Actual Cash Value vs. Replacement Cost
The form of policy. The NAIC describes two standard forms. The broad form — the most commonly bought — covers your belongings against specific listed events, such as fire or theft. The comprehensive form covers a wider range of events unless specifically excluded, and usually costs more.
Discounts. Insurers often discount renters insurance if you bundle it with another policy, such as auto insurance, or if your apartment has a security system, smoke detectors, or deadbolt locks. A recent claim, or a lower credit-based insurance score where your state allows its use, can also raise your premium.
How much is renters insurance by state?
State averages vary widely. The official state-by-state picture is older data — the NAIC figures reported by the III are for 2022 — so treat any state table you see online with care if it does not name its year and source. The pattern is clear: the most expensive states are in the South (Mississippi, Louisiana, and Alabama), and the cheapest are in the Upper Midwest and Plains (North Dakota, South Dakota, and Minnesota). A national average is only a starting point; your own quote, for your address and your coverage, is the only number that matters for your budget.
For a rough sense of your own numbers before you shop, the Renters Insurance Calculator can help you estimate costs based on the coverage you need. Use it as a starting point, then compare real quotes — only an insurer’s quote is a price.
How to lower your renters insurance cost
You do not need to cut coverage to pay less.
Raise your deductible — if you can afford it. Moving from $500 to $1,000 can save as much as 25%, according to the III. Keep the difference in savings so the higher deductible is never a surprise.
Bundle with your auto policy. Buying renters and auto insurance from the same company is the most common discount, and it often cuts the price of both policies. If you already have car insurance, start your renters quote there. How Much Does Car Insurance Cost in 2026? Average Rates and Factors That Affect Your Premium
Choose replacement cost deliberately. It is worth the roughly 10% extra for most people, because ACV payouts shrink fast on older belongings — but if your belongings are mostly new and inexpensive, compare both prices first.
Ask about safety discounts. Smoke detectors, deadbolt locks, a security system, and a sprinkler system can each earn a discount. Tell your insurer what your building already has — you may already qualify.
Compare at least three quotes — on identical coverage. The III’s advice is simple: get at least three price quotes, because prices vary from company to company. Use the same limits, the same deductible, and the same valuation method for each, or you are comparing different policies, not different prices. And do not buy more than you need — but do not buy less, either: a home inventory stops you paying for $50,000 of coverage when you own $25,000 of belongings, and stops you discovering after a fire that your $15,000 limit replaced only half of what you lost.
Is it worth it — and what it does not cover
For most renters, yes. At roughly $14 to $15 a month, a year’s coverage costs less than replacing a single mid-range laptop, and without it a fire, break-in, or burst pipe leaves you paying for everything yourself. The III puts it bluntly: your landlord’s policy will not replace your personal possessions or pay your living expenses while the building is repaired.
Two exceptions: a college student in a dorm may already be covered under a parent’s policy — the NAIC notes a dependent is covered for up to about 10% of the parent’s policy on average, so check the exact limit — and if your landlord requires renters insurance as a lease condition, you need at least the minimum the lease specifies, usually $100,000 of liability coverage.
One caution: floods and earthquakes are not covered by a standard policy. Flood coverage is available separately from the National Flood Insurance Program (NFIP) and from a few private insurers, and earthquake coverage can be added as a separate policy or an endorsement. Your car is not covered either — that is what auto insurance is for — and neither are your roommate’s belongings, unless they are named on your policy.
The short version
- How much is renters insurance? About $14 a month on average ($171 a year in 2022, $173 in 2023, per NAIC data reported by the III), with the NAIC’s consumer guide giving a typical range of $15 to $30 a month.
- Your price depends mostly on where you live, how much personal property you cover, your liability limit, your deductible, and whether you choose replacement cost or actual cash value.
- The most expensive states are Mississippi, Louisiana, and Alabama; the cheapest are North Dakota, South Dakota, and Minnesota (2022 NAIC data).
- Raising your deductible from $500 to $1,000 may save as much as 25%; replacement cost coverage costs about 10% more than actual cash value but pays far more on older items.
- Compare at least three quotes on identical coverage, bundle with auto insurance if you can, and ask about safety discounts.
Frequently asked questions
How much is renters insurance per month?
On average, about $14 a month, based on NAIC data ($171 a year in 2022, $173 in 2023). The NAIC’s consumer guide gives a typical range of $15 to $30 a month, depending on location, rental size, and how much you own.
Why is my quote higher than the average?
The national average is for a basic policy. Your quote rises with a higher-risk location, higher limits, a low deductible, replacement cost coverage, or a recent claim. Compare three quotes on identical coverage to check it.
What is the cheapest renters insurance I can get?
There is no single cheapest company for everyone — prices vary by address, coverage, and insurer. The reliable ways to pay less are a higher deductible you can afford, bundling with auto insurance, safety-device discounts, and comparing three quotes.
Is renters insurance worth it if I don’t own much?
Usually, yes. Most renters own more than they think — furniture, electronics, clothing, and kitchenware often total $20,000 or more. At roughly $15 a month, the policy also covers your liability if someone is injured in your home and your living expenses if a covered disaster forces you out.
A note before you decide
This article explains how renters insurance pricing works in general terms. It is educational information, not personal insurance advice, and it cannot tell you what your premium will be. Prices vary by insurer, state, and your own circumstances, and the averages quoted here come from earlier years and will change. Read your own policy documents, compare real quotes for your address, and talk to a licensed agent or your state insurance department if you are unsure what coverage you need.
Sources
The facts in this article were checked on the following pages, opened on November 5, 2026:
- Insurance Information Institute (III), “Renters Insurance” — three protections; liability limits generally start at about $100,000, some experts recommend at least $300,000; no-fault medical coverage generally $1,000 to $5,000; replacement cost about 10% more than actual cash value; $500 deductible standard, $1,000 may save as much as 25%; at least three quotes; off-premises coverage often 10% of the personal property limit; jewelry generally covered up to $1,500; floods and earthquakes not covered, flood coverage from the NFIP. https://www.iii.org/article/renters-insurance
- National Association of Insurance Commissioners (NAIC), “Renters Insurance: To Purchase or Not to Purchase” — landlord’s coverage covers the building structure; broad form vs. comprehensive form; actual cash value vs. replacement cost; dependents such as college students covered up to about 10% of a parent’s policy on average; riders for unusually expensive items. https://content.naic.org/article/consumer-insight-renters-insurance-purchase-or-not-purchase
- NAIC, “For Rent: Protecting Your Belongings With Renters Insurance” — premiums average between $15 and $30 per month depending on location, size of the rental unit and the policyholder’s possessions. https://content.naic.org/article/consumer-insight-rent-protecting-your-belongings-renters-insurance
- III, “Facts + Statistics: Renters insurance” — average renters premium $171 in 2022 (NAIC); Mississippi, Louisiana and Alabama highest; North Dakota, South Dakota and Minnesota lowest. https://www.iii.org/fact-statistic/facts-statistics-renters-insurance
