Average Renters Insurance Cost

The average renters insurance cost for United States tenants is fairly affordable. According to the National Association of Insurance Commissioners, the average renter pays just $189 in annual premiums. Keep reading to review more specific renters insurance cost estimates by state and learn about other factors beyond location that affect cost.

State-by-State Average Renters Insurance Cost

Home insurance rates vary partly based on where the dwelling is located. Naturally, a home that is situated in an area of high hurricane or hail damage risk will require higher annual premiums. Renters who live in Texas are burdened with the highest rate of HO-4 tenant insurance, with an average premium of $261. Mississippi comes in second with an average rate of $252. Other areas with above-average renters insurance rates include Oklahoma, California and Louisiana. In contrast, North Dakota is the most affordable state for renters insurance, with an average rate of $119.

Other Factors That Affect Cost of Renters Insurance

Numerous factors beyond home or apartment location contribute to the cost of renters insurance. Some of these factors include size of the rental property, year of construction, type of building and total value of personal belongings to be insured. Credit score of the renter may also be taken into account when determining the level of risk. As a result, renters with low credit scores may be required to pay higher rates.

Lowering the Cost of Renters Insurance

If you believe your renter insurance cost is too high, then there are several ways to go about reducing your annual premiums. First and foremost, you might consider requesting price quotes from competing insurance providers. Looking into available discount programs may also be worthwhile. Common discounts offered to renters include multi-policy discounts, senior citizen discounts and discounts for activating a security alarm. Offering to pay your annual premium on a 6-month or annual basis may also be a smart way to lower the cost of your renters insurance. Another option is to raise the deductible of your policy. However, this should be done with caution, as it will require you to pay more out of pocket in the event of hazard or theft.