Written by: Gordon Alford | Co-founder of InsuRabbit.com | Updated on: October 31, 2026
Renters insurance is one of the most affordable types of insurance you can buy, yet many renters skip it because they assume it’s expensive or that their landlord’s policy already covers them. In reality, it typically costs about $14 a month on average, and it protects your belongings, your liability, and your living costs if a covered loss forces you out of your home.
The short answer: Renters insurance costs about $165 a year, or roughly $14 a month, based on 2026 rate data from NerdWallet. Official regulator data tells a similar story: the most recent state-by-state figures from the National Association of Insurance Commissioners (NAIC) put the national average at $171 a year. Your price can be higher or lower depending on where you live, how much coverage you choose, your deductible, and the discounts you qualify for.
Below, we break down average costs, what drives your price up or down, and how to get the right coverage for less.
How much is renters insurance on average?
According to NerdWallet’s 2026 analysis, the average renters insurance cost in the U.S. is $165 per year, or about $14 per month. That figure is based on quotes for a sample renter with $30,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible.
For comparison, the NAIC’s most recent state-by-state data, from 2022 and published by the Insurance Information Institute, shows an average premium of $171 per year. The two numbers measure slightly different things: NerdWallet’s reflects current quotes for one sample renter, while the NAIC’s reflects what policyholders actually paid on average.
State regulators report similar ranges, too. For example, the Missouri Department of Commerce and Insurance says renters can expect to pay about $8 to $21 per month for $20,000 to $30,000 worth of coverage.
Keep in mind that averages are just a starting point. Your own quote depends on your situation, so the only way to know your actual price is to compare quotes.
Renters insurance cost by state
Where you live has a big effect on what you pay. According to NerdWallet’s 2026 rate data, average annual costs range from about $120 to $315, depending on the state.
Most expensive states for renters insurance:
- Louisiana: $315 per year
- Mississippi: $250 per year
- Georgia: $250 per year
Least expensive states for renters insurance:
- Vermont: $120 per year
- Wyoming: $120 per year
- Alaska, Iowa, and Maine: $125 per year each
The NAIC’s regulator data points the same way: in its latest figures, Mississippi, Louisiana, and Alabama had the highest average premiums, while North Dakota, South Dakota, and Minnesota had the lowest. Both sources linked above list averages for every state, so you can see how yours compares.
What affects the cost of renters insurance?
Several factors determine your premium. According to the Wisconsin Office of the Commissioner of Insurance, cost depends on the fire protection rating, the type of building, its location, and the amount of coverage you buy. Here’s how each one plays a role:
- Location: your state, city, and even neighborhood affect your rate, as the state averages above show.
- Type of building: Wisconsin’s regulator notes that renters in fire-resistant buildings, or in buildings with four or fewer apartments, generally pay less, while large apartment buildings generally cost more.
- Fire protection rating: the fire protection rating where you live is one of the factors Wisconsin’s regulator lists.
- Coverage amount: the more personal property and liability coverage you buy, the more you’ll pay.
- Deductible: generally, the higher your deductible, the lower your premium. However, make sure you could afford to pay it if you file a claim.
- Replacement cost vs. actual cash value: replacement cost coverage costs a bit more, but it pays to replace items at today’s prices. Actual cash value subtracts depreciation.
Depending on your state and insurer, your credit history may also play a role. Learn more in how credit can affect renters insurance rates.
Actual cash value vs. replacement cost: why it matters for price
This choice affects both your premium and your payout. The Missouri Department of Commerce and Insurance offers a simple example: under actual cash value coverage, a TV you bought for $1,000 might be worth only $300 when it’s stolen or destroyed, because of depreciation. Replacement cost coverage, on the other hand, aims to pay for a new item similar to the one you lost.
Replacement cost coverage usually raises your premium, but for many renters the difference in payout after a loss is worth it. Not sure which fits you? See how to choose the right renters coverage.
How to lower your renters insurance cost
Because renters insurance is already relatively inexpensive, a few smart moves can make it even more affordable. The Missouri Department of Commerce and Insurance suggests checking whether you qualify for discounts such as:
- Monitored alarms
- Fire extinguishers and sprinkler systems
- Deadbolts on exterior doors
- Bundling your renters and auto insurance
In addition, consider these steps:
- Choose a higher deductible if you have savings to cover it.
- Buy the right amount of coverage. Make a home inventory so you neither overpay nor end up underinsured.
- Compare several quotes. Wisconsin’s regulator notes that companies differ not only in cost but also in claims service and coverage.
For more ideas, read our tips on getting the best deal on renters insurance.
What does renters insurance cover for the price?
A standard renters policy, known as an HO-4, typically bundles several protections. According to the Wisconsin Office of the Commissioner of Insurance, these include:
- Personal property: covers your belongings against perils such as fire, smoke, theft, vandalism, and falling objects.
- Personal liability: covers bodily injury and property damage to others caused by your negligence.
- Medical payments: covers injuries to others in your home, regardless of fault.
- Additional living expenses: covers reasonable, necessary costs of living somewhere temporarily after a covered loss.
Renters policies also have limits. The Missouri Department of Commerce and Insurance notes that they don’t cover floods, earthquakes, or sewer and water backups. For a full breakdown, see what renters insurance covers.
Is renters insurance worth the cost?
For most renters, the math is simple. At an average of about $14 a month, a policy costs far less than replacing a laptop, a couch, and a closet full of clothes after a fire or burglary. Moreover, your landlord’s insurance usually won’t help.
The Missouri Department of Commerce and Insurance notes that it’s unlikely a landlord carries insurance for tenants’ personal possessions, since landlord policies typically cover only the building.
Some landlords even require it. Find out more about whether renters insurance is required.
Frequently asked questions
How much is renters insurance per month?
About $14 a month on average. NerdWallet’s 2026 data puts the average at $165 a year, and the NAIC’s most recent regulator data puts it at $171 a year. The Missouri Department of Commerce and Insurance cites a range of about $8 to $21 per month for $20,000 to $30,000 of coverage.
Which state has the most expensive renters insurance?
Louisiana, at about $315 a year, according to NerdWallet’s 2026 rate data, followed by Mississippi and Georgia. The NAIC’s most recent regulator data ranks Mississippi first, followed by Louisiana and Alabama.
Which state has the cheapest renters insurance?
Vermont and Wyoming, at about $120 a year each, according to NerdWallet’s 2026 rate data. In the NAIC’s most recent data, North Dakota had the lowest average premium.
Does a higher deductible lower my renters insurance cost?
Generally, yes. Wisconsin’s insurance regulator notes that the higher the deductible, the lower the premium, but make sure you can afford the deductible if you file a claim.
Does my landlord’s insurance cover my belongings?
Usually not. Landlord policies typically cover only the building, not tenants’ personal possessions, according to the Missouri Department of Commerce and Insurance.
Can roommates share one renters insurance policy?
Sometimes, but it has drawbacks. Read whether roommates should share renters insurance before you decide.
The bottom line
So, how much is renters insurance? On average, about $165 to $171 a year, or roughly $14 a month, though your price depends on your state, building, coverage, deductible, and discounts. Because companies differ in price, coverage, and claims service, comparing quotes is the best way to find the right policy at the right price.
Ready to see what you’d pay? Compare renters insurance quotes for free with InsuRabbit.
