How much is renters insurance?

So how much is renters insurance? You pay less for this than for almost any other bill. In 2023, a full 12 months of cover on the average renters policy cost $173. The latest count puts the cost at about $14 a month, according to the National Association of Insurance Commissioners (NAIC). The state you live in and the amount you insure affect your price, though not by much.

How much is renters insurance in your state?

The HO-4 form is the standard renters policy, and the NAIC tracks tenant payments for it in each state. At $263 a year, Mississippi has the highest price. At $125, South Dakota has the lowest price. North Dakota and Wisconsin follow closely. All seven states that cost more than $200 are in the South.

Source: NAIC, Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner's Insurance Report: Data for 2023 (published July 2026), Table 5, HO-4 (renters) total average premium by state.

This part surprised me. In a decade, renters insurance prices have hardly changed. In 2013 the US average was $188, and in 2022 it was $171, according to the Triple-I's NAIC data table. During that period, the cost of an owner's home policy rose from $1,096 to $1,569.

What is covered by renters insurance?

Three parts make up a standard policy, according to the Texas Department of Insurance:

• Personal property cover. Your stuff, like your couch and your laptop. Fire, smoke, theft and vandalism are covered. Some water damage is covered too. Even items stolen out of your car or during your travels get covered.
• Liability. When a guest is hurt or you damage another person's property, a lawyer and any judgment are covered up to your limit.
• Loss of use benefits. When a covered loss makes your home impossible to live in, it pays added costs for a hotel, meals and a short rental during repairs.

After a guest falls at your place, most policies also pay medical bills, often $1,000 to $5,000, according to the Triple-I. The building itself falls under your landlord's policy. It won't replace your couch, and it won't pay for your hotel either.

What renters insurance doesn't pay for

The gaps count as much as the cover. As Virginia's insurance regulator and also the Texas Department of Insurance describe, these are the common ones:

• Flooding. A separate flood policy is what you need, for example one from the National Flood Insurance Program.
• Earthquakes. Earthquakes need an add-on.
• The car that belongs to you. That's the job of auto insurance.
• Pricey things past a cap. For cash, the common limit is $100; for jewelry and watches, it's $500; for things you use for work, it's $2,500.

How much cover do you need?

Start by listing what you own and what each item would cost to replace. Don't skip the simple stuff: clothes, pots, towels, bedding. Add up those amounts and you have your property limit.

Extra coverage is cheaper than you'd think. In 2023, NAIC data put the yearly average at $185 for property cover in the $30,000 through $34,999 range. Policies in the $100,000 through $124,999 range averaged $328. Liability limits often begin at $100,000, though some experts suggest $300,000, per the Triple-I.

Your price changes most with these two choices:

• How your claims are paid. Take a laptop you paid $1,300 for two years back. The same kind costs $500 now. According to the Texas Department of Insurance, a basic policy pays $500. Replacement cost cover pays for a brand new one, and it costs about 10% more.
• Your deductible amount. You pay it before the insurer pays. Raising it from $500 to $1,000 can lower your premium by up to 25%.

Is renters insurance worth it?

My take: yes, for nearly every renter. Run the numbers for a fire. If replacing your things would cost $30,000, one year of coverage at $185 is less than 1% of that amount. A guest could sue for more than you own after breaking a leg on your stairs.

Your lease may require it even though no law forces you to buy coverage, the Texas Department of Insurance notes. If you're a student, you may not need a policy of your own. A homeowners policy held by a parent may cover a dependent's belongings away from home, usually no more than 10% of the property coverage amount.

Renting comes with a quiet perk too. On our basis, home insurance costs a typical owner about $1,308 a year, roughly 7 times what renters pay. Include that gap in any honest count of the cost of owning a home.