What is the average price of renters insurance?

Renters insurance premiums vary by common risk factors, such as your home's location and required coverages. Nationwide, the average annual cost of renters insurance is $170 (Opens in a new tab). However, prices range from a high of $258 in Mississippi to a low of $114 in North Dakota (iii.org, 2021).

This article addresses each state's average annual renters insurance costs. It also details factors contributing to your prices and ways to lower your renters insurance premiums.

What affects renters insurance prices?

Insurance companies use the following coverage-related details to calculate your renters insurance rates.

Your details

• Claim history: The number of renters insurance claims you have filed.
• Credit history: Personal and insurance credit scores.
• Coverage gaps: Periods you have gone without renters insurance or have allowed an existing policy to lapse.

Renters insurance savings tip: Improving your credit score may reduce your renters insurance prices.

Renters insurance details

• Coverages: Standard renters insurance policies typically cost less than those with added endorsements, such as Equipment Breakdown insurance.
• Deductibles: Policies with high deductibles usually boast lower premiums than those with low deductibles.
• Discounts: Savings programs like AutoPay or Paperless Billing may help reduce renters insurance rates.
• Limits: Base renters coverage limits, such as those in a standard renters insurance policy, yield lower premiums than those with higher coverage limits.
• Payment frequencies: Annual payments versus biannual or monthly payments may decrease renters insurance costs.

Renters insurance savings tip: Work with your insurance agent to find qualifying savings programs, such as our loyalty and bundling discounts.

Rental home details

• Location: Crime rates, proximity to fire stations and disaster risks may significantly impact insurance premiums.
• Age: Newer homes are typically less damage-prone, decreasing your insurance claim risks.
• Construction: Homes made from materials combating local environmental threats, such as brick versus wood in a wildfire-prone area, may be less risky to insure.
• Pets: Renters with high-risk pets, such as dogs with a history of biting, pose an increased liability risk.
• Safety features: Water leak detectors, fire extinguishers and smart home systems may lower renters insurance prices.

Renters insurance savings tip: If you have a home security system, you may qualify for our Safe, Secure, Smart home discount. Contact your agent for details.

Renters insurance discounts

With qualifying savings programs, you may be able to lower your renters insurance prices. The following are more American Family Insurance discounts to discuss with your agent.

• Bundling discounts
• Full Pay discount
• Generational discount

Get a renters insurance quote

Contact a local American Family agent for your custom renters insurance quote. They can help you get the coverage you need with qualifying discounts and savings programs.

For more tenant resources, visit our renters insurance FAQs.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

The information on this webpage represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Coverage features and limits vary by state and may be subject to change. Some products are not available in every state. Discount availability and eligibility vary by state and policy terms. (Discounts apply to auto and property policies.) Please check with your agent and read the policy for exact details on coverages and exclusions.

*Customers who bundle their auto and renters insurance may save up to 5% on both policies together (as of December 2023).

 **“Archived Tables.” III, https://www.iii.org/table-archive/21407. Accessed 21 Jan. 2025.