75+ Renters Insurance Statistics

If you rent a home or apartment, you might mistakenly believe that if there’s a catastrophe, fire, or burglary, the landlord is financially responsible. While the landlord needs to have insurance to protect the building itself, that policy doesn’t extend to your living expenses or personal possessions in the event that something happens. The only way to protect yourself against such situations is with a renters insurance policy.

Statistics on the rate of renters insurance reveal that more and more renters are getting coverage and yet many with a policy still don’t know what that policy will pay for. This article will review important statistics on renters insurance in the United States.

Renters Insurance Coverage Types

Renters insurance is similar to homeowners insurance but designed for individuals who rent properties like houses and apartments. There are not as many policy options as homeowners insurance which makes it easier to find the coverage you need.

According to the Insurance Information Institute, renters insurance coverage, sometimes called tenants insurance, as three types of protection:

1. Personal possessions
2. Liability
3. Additional living expenses

The table below breaks down what each of those covers, and how to figure out how much Insurance you need to buy as a renter.

Source: III; US Treasury

According to Investopedia, the average renter has a value of $20,000 in personal belongings. This means that the average renter should carry personal possessions coverage of at least $20,000.

Despite the fact that 55% of renter occupied households have rental insurance, the insurance company Assurant conducted a survey in 2018 which confirmed that around the time the largest increase in renters insurance took place, many renters were still uncertain as to what their coverage included.

• 57%: 57% of renters either didn’t know who was responsible for theft or property damage, or thought that it was the responsibility of the landlord or property management company.
• 97%: 97% of renters are unaware that if their dog bites someone, they get coverage through renters insurance.
• 81%:  81% of renters are unaware that if their toilet overflows and it damages a rug, renters insurance would cover that damage.
• 84%:  84% of renters are unaware that if someone visiting has a trip and fall accident that results in an injury, while inside the rental property, renters insurance would cover their medical.
• 57%:  57% of renters are unaware that if their home is made inhabitable because of a fire from a neighboring apartment, their coverage would include the cost of temporary housing.
• 3.21%: The average premium for dwelling fire policies increased from 2019 to 2020 by 3.21%.
• 75%: The average renters insurance policy covers about 75% of possible issues or “exposures”.

Source: III; Assurant

Average premiums for renters insurance

The majority of renters do not know what their coverage is, and those without renters insurance cite the cost as one of the biggest reasons why they don’t have insurance, noting that they assume the premiums will be too high but they don’t actually know how much they cost.

• $173/$250: The average annual cost is $173 per year and deductibles of $250 for renters insurance across the United States, according to Assurant.

Below is a table listing the average premiums for renters insurance across the United States from 2011 through 2020:

Source: III

The data above shows that over the last 10 years, the average cost of renters insurance has gone down steadily since 2014.

Let’s take a closer look at each state.

The table below shows the average renters insurance cost for 2020 by state:

Source: III

Using the data above, the ten most expensive states are as follows:

1. Florida
2. Oklahoma
3. Louisiana
4. Texas
5. Rhode Island
6. Mississippi
7. Colorado
8. Massachusetts
9. Nebraska
10. Connecticut

Similarly, the ten least expensive states in which to buy renters insurance are as follows:

1. Oregon
2. Wisconsin
3. Utah
4. Idaho
5. Nevada
6. Arizona
7. Ohio
8. Delaware
9. Washington
10. Maine

Average coverage amount of renters insurance

According to Assurant, the average coverage for renters insurance is $10,000 for personal belongings and $100,000 for liability coverage.

However, renters insurance offers the same flexibility as homeowners insurance in that you can choose the amount of coverage you get for personal property, liability coverage, your deductible, and whether you want to pay your premiums monthly or annually.

In addition to the state in which you live, there are other factors that can influence the cost of your coverage:

1. Annual payments are slightly less expensive compared to monthly payments.
2. Higher credit scores can decrease the cost of renters insurance.
3. Being a smoker can hypothetically increase the cost because it increases the risk of damage.
4. Location in an area known to experience natural disasters like floods, fires, tornados, or hurricanes can increase the risk and subsequent cost of coverage.

Number of renters who have renters insurance

Data from the most recent 2020 poll from the International Insurance Institute (III) has found that 57% of all tenants have some form of renters insurance, which is the highest they have ever recorded. That figure is also double what it was in 2012 when the III began recording statistics on renters insurance in the US.

• 55%: 55% of renter-occupied homes across the United States have renters insurance.
• 45 million: Across the United States there are roughly 45 million renter-occupied homes.
• 25 million: Of the 45 million tenant occupied homes, more than 25 million of them have renters insurance.
• 15%: The number of renters with renters insurance has increased 15% between 2018 and 2020.
• 2018-2020: The timeframe from 2018-2020 represents the largest two year increase the III has ever recorded for statistics on renters insurance in the US.
• 24%: Of those renters who do not have insurance, 24% said they’ve never even thought about it.

Source: III; Assurant

Urbanization: Increasing renters insurance

More and more residents are choosing to reside in urban areas which has put a great deal of pressure on development, affordability, and renter occupied homes. The National Association of Insurance Commissioners noted that urban areas tend to have more renters and, by extension, more renters insurance than rural areas, increasing the average premiums based on large cities in each state.

California has the highest population out of all 50 states, at 38 million people. California is also the most heavily urbanized, with more heavily populated major cities and urban areas than any other state. of the 38 million people, 17 million of them are renters, or, nearly 40% of all residents are renters.

• 3.8 million: California has the highest number of households with renters insurance, at 3.8 million households across the state.
• 17 million: Across the state of California 17 million people rent.
• 40%: 40% of all homes across the state of California are comprised of renters.
• 94.2%:  The state of California is 94.2% urbanized.
• 87.4%: The state of New York is 87.4% urbanized.
• 2.6 million: New York state has the second highest number of households with renters insurance, at 2.6 million households across the state.
• 20 million: New York state has a population of 20 million people, almost half of California.
• 49.7%: 49.7% of all homes across the state of New York are comprised of renters making it the state with the highest number of renters next to the District of Columbia.
• 2.3 million: Texas has the third highest number of households with renters insurance at 2.3 million.
• 1.6 million:  Florida has the fourth highest number of households with renters insurance at 1.6 million.

Source: III; NAIC; LATimes; VisualCapitalist

Data on renters insurance across different states reveals that 1% of the population of the state of California has renters insurance, but by comparison just over 10% of the population of New York state has renters insurance. This vast difference is represented by the difference in population and the total number of renters in each state.

Rent vs. Homeownership Statistics

The National Multifamily Housing Council has compiled data on the age distribution of households for renter occupied versus owner occupied and found that 55% of renter-occupied householders are under 45 while 73% of owner-occupied householders are over 45 signifying that the majority of renters are younger individuals while the majority of homeowners remain much older individuals. Moreover, only 5% of owner-occupied householders are under the age of 30.

That same data paints a clear picture that the distribution of ages across renter-occupied homes is more evenly balanced between age groups (23% are 30 or younger; 32% are 30-45; 28% are 45-65; 17% are 65 or older) while the distribution is heavily skewed for owner-occupied homes (5% of householders are under 30; 23% are 30-45; 40% are 45-65; 33% are 65 or older).

• 35%: The share of renter-occupied households in 2022 was 35%.
• 65%: The share of owner-occupied households in 2022 was 65%.
• 42,221,844: The number of renter-occupied households across America in 2022.
• 84,649,084: The number of owner-occupied households across America in 2022.
• 48%: 48% of renter occupied households in America in 2022 were under the age of 30.
• 24%: 24% of renter occupied households in America in 2022 were between 30 and 44 years old.
• 19%: 19% of renter occupied households in America were between 45 and 64 years old in 2022.
• 10%: 10% of renter occupied households across America were 65 or older in 2022.
• 48,778,190: 48,778,190 rental residents are under the age of 30.
• 24,249,860: 24,249,860 rental residents are between 30 and 44 years old.
• 19,147,544: 19,147,544 rental residents are between 45 and 64 years old.
• 10,339,650: 10,339,650 rental residents are older than 65.
• 33%: 33% of owner occupied homes across America in 2022 had residents under the age of 30.
• 19%: 19% of owner occupied homes in 2022 in America had residents between the ages of 30 and 44.
• 28%: 28% of owner-occupied homes in 2022 across the United States had residents between the ages of 45 and 64.
• 21%: 21% of owner occupied homes in 2022 were owned by individuals 65 or older.
• 72,816,494: 72,816,494 owner occupied residents are under the age of 30.
• 41,872,600: 41,872,600 owner occupied residents are between the ages of 30 and 44.
• 62,188,973: 62,188,973 owner occupied residents are between the ages of 45 and 64.
• 45,741,358: 45,741,358 owner occupied residents or older.

Source: III; NMHC; NAIC

Biggest renters insurance companies

There are dozens of insurance companies offering renters insurance, with many providing situation-specific discounts. However, not all companies operate across all 50 states.

• 18.63%: State Farm is the biggest company for renters insurance across the United States, making up 18.63% of the market.
• 8.44%: Allstate is the second biggest insurance provider for renters insurance, accounting for 8.44% of the market.
• 6.86%: Liberty Mutual is the third largest insurance provider for renters insurance, accounting for 6.86% of the market.
• 6.05%: USAA is the fourth biggest insurance provider for renters insurance, making up 6.05% of the market.
• 5.96%: Farmers is the fifth most prominent renters insurance provider, making up 5.96% of the market.

Source: NAIC

According to US News, the best renters insurance companies are as follows:

Source: US News

Overall, renters insurance is less expensive than many people think. The cost has decreased over the last several years, making it more affordable than ever. Several of the biggest renters’ insurance companies on the market have discounts that can expand coverage based on your state or offer discounts for loyalty and bundling. With renters insurance, you can have peace of mind that your belongings and your liability are protected.