Renters insurance runs between $170 and $216 annually in the U.S., which breaks down to roughly $14 to $18 per month. That’s less than a couple of Starbucks runs. Most people shell out $12 to $25 monthly, though some pay $30 or more in expensive areas. Location matters big time—North Dakota residents pay around $114 yearly while Mississippi hits $222. The cost depends on coverage amounts, deductibles, and where someone lives. There’s more to understand about what drives these prices.
Design Highlights
- Renters insurance costs $170 to $216 annually on average, or approximately $14 to $18 per month in the U.S.
- A typical policy with $20,000 property coverage and $100,000 liability costs about $16 monthly.
- Location significantly impacts rates; North Dakota averages $114 annually while Mississippi reaches $222 annually.
- Higher personal property values and lower deductibles increase premiums, with $60,000 coverage costing around $30 monthly.
- Monthly costs typically range from $12 to $25, though high-risk areas may exceed $30 per month.
Renters insurance is cheap. Like, really cheap. The average cost in the U.S. hovers around $170 to $216 per year as of 2025. That’s roughly $14 to $18 monthly. Less than a couple of coffees at Starbucks. Most people pay between $12 and $25 per month, though some unlucky souls in pricier areas might shell out $30 or more.
For less than your daily coffee habit, renters insurance averages just $14 to $18 per month nationwide.
Why so affordable? Simple. Renters insurance doesn’t cover the actual building you live in. That’s the landlord’s problem. You’re just insuring your stuff and liability protection, which costs way less than homeowners insurance.
The price tag depends heavily on what you’re covering. A typical policy with $20,000 in property coverage and $100,000 in liability runs about $16 monthly. Bump that property coverage up to $60,000, and you’re looking at closer to $29 or $30 per month. Every $100,000 you add in liability coverage tacks on roughly another dollar to your monthly bill.
Location matters. A lot. States with lower crime rates and less extreme weather get the best deals. North Dakota leads the pack at around $114 to $123 annually. South Dakota, Minnesota, Wisconsin, and Wyoming also enjoy relatively cheap rates.
Meanwhile, residents in Mississippi ($222), Arkansas ($205), and Alabama ($219) pay nearly double. Urban areas and high-risk ZIP codes automatically mean higher premiums because theft and natural disasters aren’t exactly rare occurrences there. Louisiana and Florida rank among the most expensive states due to natural disaster risks, with monthly premiums reaching $32 and $28 respectively.
Deductibles play their part too. Most policies offer deductible options of $250, $500, or $1,000. Pick a $250 deductible and expect to pay around $18 monthly. Go with $1,000 and that drops to about $15. Higher deductibles lower your premium but mean more cash out of pocket when you file a claim. The $500 deductible hits the sweet spot for most renters.
The value of your belongings drives cost as well. Got expensive electronics, jewelry, or fancy furniture? You’ll need higher coverage limits, which means higher premiums. Pretty straightforward math. Keep in mind that high-value items like expensive jewelry or collectibles may require additional coverage riders beyond standard policy limits. Creating an inventory of possessions helps determine how much coverage you actually need and can prevent overpaying for unnecessary protection.
State-to-state differences can exceed 50% in annual costs. That’s wild. The same exact coverage might cost you $114 in North Dakota but over $200 in Mississippi. Geography is destiny when it comes to insurance rates.
Bottom line? Renters insurance won’t break the bank. For what amounts to pocket change each month, you get protection for your belongings and liability coverage. Not a bad deal.
Frequently Asked Questions
Does Renters Insurance Cover Damage Caused by Roommates?
Renters insurance doesn’t cover damage caused by roommates. Period.
Whether they accidentally trash your stuff or intentionally destroy it, the policy won’t pay out. That includes theft by a roommate—even if they’re listed on the same policy.
Insurance companies specifically exclude damage from wear and tear, accidents, or intentional acts involving roommates.
It’s a hard reality: roommates damaging each other’s belongings simply isn’t a covered event, regardless of how the policies are structured.
Can I Cancel My Renters Insurance Policy at Any Time?
Most renters insurance policies allow cancellation at any time. No magical lock-in period.
However, insurers typically require written notice—often 30 days ahead—via email, letter, or their online portal. Some charge minor cancellation fees, usually $25 or less, especially for mid-term exits.
Here’s the catch: canceling before moving out might violate lease terms requiring continuous coverage. That could mean fines or landlord headaches.
Best move? Keep coverage active until keys are returned and the final walkthrough wraps up.
Is Renters Insurance Tax Deductible for Home Offices?
Renters insurance is tax deductible for home offices, but only if the space is used exclusively and regularly for business.
Self-employed individuals can claim it. Employees working from home? Generally out of luck.
The catch: the office must be the principal place of business, not just somewhere to check emails occasionally.
Deductions are calculated either through the simplified method ($5 per square foot, max $1,500) or by prorating the percentage of space used for business.
Do I Need Renters Insurance if My Landlord Has Insurance?
Yes, tenants need renters insurance even if their landlord has insurance. Here’s why: landlord insurance only covers the building structure and the landlord’s property.
It doesn’t cover a tenant’s personal belongings, liability for injuries, or additional living expenses if the unit becomes uninhabitable. The landlord’s policy protects their investment, not the tenant’s stuff.
Renters insurance is a separate policy tenants must purchase independently to protect themselves.
Will Renters Insurance Cover My Belongings in a Storage Unit?
Yes, renters insurance typically covers storage unit belongings, but there’s a catch.
Coverage is usually capped at 10% of total personal property limits—so a $30,000 policy only covers $3,000 in storage. Some insurers slap on even lower flat limits, like $1,000.
Standard perils like theft and fire are covered. Floods, earthquakes, pests, and mold? Nope.
Coverage might also drop after 30-90 days. Deductibles still apply, obviously.
