Skip to Content

How much does a typical renter’s insurance policy cost per month?

How much does a typical renter’s insurance policy cost per month?
Enable Accessible Reading Disable Accessible Reading

The average cost of renters insurance in the US As discussed above, selecting a higher excess on your renters insurance policy can reduce your premium. If you can demonstrate that you are a low-risk customer, you will often pay lower rates, so if you are a tenant with fire alarms, burglar alarms, deadbolts or other security features, you may qualify for a discount from your insurer. Note that if you have flatmates, your tenants’ insurance will not cover flatmates, who need their own policies. While this is still less than what homeowners have to pay for homeowners insurance, it can be a significant cost for many renters.

Mississippi, Alabama, Louisiana and Texas are some of the most expensive states for renters insurance. Renters’ insurance is not required by law, but landlords can require tenants to purchase renters’ insurance as a condition of the rental agreement. Insurers often consider that people with a history of claims are more likely to make claims in the future as well. The change in rental rates nationally is difficult to attribute to a single factor, however, statistics compiled by iProperty Management show that tenants are leaving the cities for the suburbs.

Having a dog may not make your insurance directly more expensive, but having a dog may mean you need more cover. The excess on your renters’ insurance is the amount you must pay before you receive compensation in the event of a claim. Only 40 per cent of renters have renters’ insurance, but that doesn’t mean you should stop taking out a policy for yourself.