Renters Insurance Cost Per Month – U.S. renters often choose not to insure their homes, and in some states, high premium costs can be a factor.
Over the past decade, the United States has seen an increase in the number of renters occupying housing units compared to homeowners – the US Census Bureau reported between 2010 and 2016, the proportion of renters among all occupied housing units in the United States increased steadily from 33.4 percent in 2010 to 36.4 percent in 2016. While the share of total renters decreased slightly in 2018 to 35.6 percent and has remained at that level since, it is clear that renters are far from an invisible minority.
Renters Insurance Cost Per Month
Renting may be a less long-term investment than buying a home, but protecting your home is important, even if you don’t formally own it. However, renters are less likely to insure their homes – according to the Insurance Information Institute, only 37% of renters invest in renters insurance, compared to a 95% investment rate on home owners insurance. Renters insurance coverage for unexpected events that may occur while renting your home, including personal property coverage, liability coverage, and additional living expenses such as substitution. Likewise, renter’s insurance costs are affected by the same factors as homeowner’s insurance premiums, such as vandalism, weather-related casualties, or other forms of property damage. With everything that renters insurance covers, why don’t all renters want to insure their homes?
Looking At Average Renters Insurance Rates Across All 50 States
One factor driving the low proportion of renters with insurance may be the fact that renters in general are associated with greater economic vulnerability. According to a report by the National Low Income Housing Coalition, renters are more likely to work in low-wage or minimum-wage jobs — renters in general are less likely to have large savings. like homeowners, meaning renters are more vulnerable to economic hardship. . So the cost of renters insurance is a more expensive investment for renters, even though the actual cost of a renters policy is lower than for homeowners. To take a deeper look at national trends, the research team crunched the numbers to identify the states with the most expensive renters insurance premiums.
The data science and research team at , a site to compare homeowners insurance, studied rental premium data from the Insurance Information Institute to determine the states with the most expensive insurance among those is renting. Data on the HO-4 renters insurance policy for tenants issued by the National Association of Insurance Commissioners (NAIC), which includes extensive name-peril coverage for personal property and tenant liability, serves as a basis for measuring the Average renters insurance costs by state.
To determine the average monthly cost of coverage for each state, researchers used rent estimates from real estate data published by Apartment List, an online property rental platform. Property crime rates are derived from the FBI’s Uniform Crime Reporting Program estimates at the state and national levels obtained from their Summary Reporting System (SRS). Property crime, as defined by the FBI, includes the offenses of burglary, theft, motor vehicle theft, and arson.
The rankings on this list are primarily determined by the average cost of renters insurance in each state. However, for states with the same average cost, the state’s property crime rate is used to decide the final ranking, because the property crime rate and the cost of renters insurance are correlated. .
Renters Insurance: What To Know Before You Rent
With the tenth highest renters insurance premiums in the country, Massachusetts started the ranking by presenting an interesting case. Its average renters insurance premium is 8 percent higher than the national average, despite the fact that the property’s crime rate is actually 44 percent below the national average. Massachusetts renters pay higher premiums even though the likelihood of vandalism is relatively low. Especially with rental prices that are 34 percent above average, this suggests that the policies of Bay State renters are primarily determined by other factors.
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New York, the ninth state on our list, has an average renter’s insurance premium equal to that of Massachusetts, but the 13 percent explosion in Massachusetts’ property crime rate puts it ahead of the rest. ranks. New York and Massachusetts are relative outliers on this list – they are the only northeastern states in the top ten, and they both have above-average rent prices and below-average crime rates. The somewhat counterintuitive placement of New York and Massachusetts on this list can be attributed to the overall cost of living in both regions. The average cost of rent means that these are expensive states to live in, all things considered.
Breaking away from the pattern of outliers, Tennessee has the eighth highest renters insurance premiums in the country. With an average premium cost 10 percent higher than average and a property crime rate 21 percent above, Tennessee renters are vulnerable to higher costs when it comes to protection. in their homes. Tennessee’s property crime rate is the 11th highest in the nation, meaning the potential for vandalism or theft can be a driving force in the state’s renters insurance rates.
General Liability Insurance Cost: 2023 Customer Prices
The jump between places seven and eight in the rankings is the biggest to date. Arkansas renters who choose to insure their homes do so at a price 16 percent higher than the national average. While the monthly rent in Arkansas is relatively cheap, the potential liability from property crimes, which occur at a rate 23 percent above average, tends to increase the prices of insurance premiums.
Living in Georgia isn’t always peachy when it comes to securing your rental home. Georgia renters spend 18 percent more on their renters insurance premiums than the national average, even though rent prices are about the same as the US average. With a property crime rate that exceeds the national average at 13 percent, providing insurance for Georgia renters is no cheap feat.
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They say everything is bigger in Texas, which is true for renters insurance policy prices in the Lone Star State. The average renter’s insurance premium in Texas is 23 percent higher than the national average, even though the state’s property crime rate is slightly higher than normal. Texas also has notoriously high home insurance premiums, suggesting that factors such as Texas’ high rate of natural disasters contribute to these high rates.
The Best Cheap Renters Insurance In California
The fourth state on the list continues the pattern of southern representation within the top ten. On average, renters in Alabama pay 24 percent more for insurance than other renters in the United States. Although rent is relatively cheap — Alabama residents spend 23 percent less on a 2-bedroom unit than the rest of the country — higher-than-average property crime rates and high hurricane incidence raise in insurance premiums.
Louisiana has the third highest renters insurance premiums in the country. Louisiana’s statistics are similar to Alabama’s, the previous one on this list – they have similar annual renters’ insurance premiums, but Louisiana overtakes Alabama in the rankings due to its higher rate of property crime. Louisiana has the fourth highest number of property crimes per 1,000 population in the United States, in addition to having the most expensive homeowners insurance premiums in the entire country. Liability from property damage caused by crime as well as highly variable weather conditions likely contribute to their higher renters insurance premiums.
Oklahoma, where rental insurance premiums come in most other states! While only $1 higher than rates in Louisiana and Alabama, Oklahoma’s 24 percent higher than average renters insurance premiums are the second highest in the nation. While Oklahoma experienced more property crime than usual, it did not have the highest property crime rate of all the states on this list. The high cost of renters insurance in Oklahoma is an interesting case and is likely informed by Oklahoma’s unique geography. Tornadoes, winter storms, and droughts are just a few of the natural disasters that Oklahoma experiences, which can increase coverage rates.
Although nicknamed the Hospitality State, Mississippi’s high renters’ insurance premiums seem to tell a different story. To protect their homes, Mississippi renters must pay premiums at rates 31 percent higher than the national average. Interestingly, Mississippi’s property crime rate is slightly above the national average, meaning that other factors such as natural disasters may be more prominent determinants of liability coverage. Mississippi’s geographic location makes many of its communities vulnerable to flooding, which can lead to expensive insurance costs for renters in the state.
The 2023 State Of Resident Experience Report By Second Nature
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The team of data scientists and content specialists present Insights, a series of automotive, home, and health studies that focus on topics that affect us all. Through expert analysis of over 4 million auto insurance applications and an array of leading data sources, the Insights team creates new data-driven articles, analytics in fashion, regional, and national superlatives.
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