Average Renters Insurance Cost By State

The National Association of Insurance Commissioners (NAIC) informs the public that the average renters insurance would cost about $189 in annual premium. If you compute it in a monthly basis, the average renters insurance cost is $15.75. This goes to prove that the renters insurance cost in United States is fairly affordable as opposed to the notion of being expensive. Other states though have higher premium insurance rates compared to others as there are varying rates across the country. The difference in premium rates is attributable to many factors. The number one factor is the location because there are states that are high risk in earthquake, flood, windstorm, hailstorm, tornado, or hurricane. The renters insurance cost is also proportional to a state’s cost of living which means that if New York’s cost of living is high, the premium rate also is high.

Let us take the case of Texas and North Dakota and try to explain how and why the average renters insurance cost is mostly defined by state. Statistics show that the state of Texas has the highest average renters insurance cost among all 50 states countrywide. Being the second largest and having the highest population in the United States, Texas provides a lot of job opportunities which attracts many people to live or take a job here. Since most people who migrate or takes a job in Texas are just starting a new life, they would not be able to afford to buy a house hence they will rent one. Getting a renters insurance in Texas is a little bit over than the usual average renters cost – $261 per annum or $21.75 per month. The reason for this is because of the natural disasters (hurricanes, tornadoes, hail storms, wildfires, flooding) that takes place in this state all year round. Living in the most high risk area poses a lot of danger and concerns of damages and loss. This is the premise why the average renters insurance of Texas is the highest.

Conversely, the North Dakota state has the lowest average cost – $119 per annum or $9.92 per month. Unlike Texas, the reason for having the cheapest premium rate among all states is because there is less risk to calamities and aside from this fact, the cost of living is low. In fact, a study was made and results show that from within the state’s population, only 11.8% lives below the poverty line and when compared to the national average it is still at a minimal percentage – 13.6%. You might even be surprised to hear that one resident in West Fargo, North Dakota confirms that he only had to pay $66 per annum for his tenant insurance which covers $20k (personal property loss); $30k (personal liability); $1k (medical coverage), $500 (all perils deductible).

As mentioned earlier, the location is only one but not a single factor in computing for your premium cost. While you may find out how much is the average renters insurance cost of your state, there are other variables that also comes into play. The age of your house, the type of policy that you will purchase, the security or safety systems that are installed in your house, the amount of deductible you are willing to pay, your credit history, the value of the coverage and more.

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