How Much Does Renters Insurance Cost?
Hint: Renters insurance costs much less than you think.
The average cost of renters insurance in the U.S. is around $18/month in 2023 for a policy with $30,000 in coverage, according to ValuePenguin.com.
The average price for Lemonade renters insurance across the U.S. is around $14/month*, as of August 1, 2023. And with rates starting as low as $5 a month (60 bucks a year!), a Lemonade policy offers you the peace of mind and confidence that you, and your precious belongings, are covered.
Before we dive any deeper into the topic , are you wondering if you even need renters insurance in the first place? Yes. Yes, you do. (Your mom was right on that one!)
Turns out, renters insurance protects you against a bunch of all too common situations, like your laptop getting swiped from your bag, your apartment catching fire due to a tipped candle, or your BFF landing in the hospital after a kitchen accident.
TL;DR
- Across the U.S., the average cost of renters insurance in general is around $18/month, as of 2023.
- The average cost of Lemonade renters insurance is around $14 a month but can vary significantly, depending on factors such as your apartment’s location, your deductible, and the actual amount of coverage you need.
- Insurance regulations, and therefore pricing, can differ from state to state.
- You can lower the price of your renters insurance policy by installing security devices such as a fire and burglary alarm, or choosing a higher insurance deductible.
And here’s what we’ll cover in detail:
- The cost of renters insurance
- How much is renters insurance in your state?
- What factors impact my renters insurance rates?
- How can I lower my renters insurance cost?
- What does a basic renters insurance policy cover?
- How much renters insurance do I need?
- How does Lemonade keep its rate affordable?
- Which states currently offer Lemonade Renters insurance?
The cost of renters insurance
The cost of renters insurance can vary significantly, depending on your apartment’s location, deductible, and the amount of coverage you need.
One of the most important factors to keep in mind when considering renters insurance cost is the insurance company you go with. As with any important purchase, be sure to compare quotes and coverage options.
Your Lemonade renters insurance price will depend on a couple of individual factors. Your policy might cost $5/mo, or it could cost $20/mo, depending on a few variables we’ll discuss later.
Keep in mind that insurance regulations, and therefore pricing, can differ from state to state. Lemonade Renters insurance in Texas might be different from our renters insurance in PA.
How much is renters insurance in your state?
For reference, here are some average renters insurance prices across the country as of 2023. These include rates from various insurers, not Lemonade specifically.
| State | Average renters insurance price per month in 2023 |
|---|---|
| Alabama | $29 |
| Alaska | $22 |
| Arizona | $18 |
| Arkansas | $23 |
| California | $17 |
| Colorado | $14 |
| Connecticut | $17 |
| Delaware | $18 |
| Florida | $27 |
| Georgia | $27 |
| Hawaii | $19 |
| Idaho | $14 |
| Illinois | $14 |
| Indiana | $17 |
| Iowa | $13 |
| Kansas | $17 |
| Kentucky | $20 |
| Lousiana | $34 |
| Maine | $12 |
| Maryland | $16 |
| Michigan | $26 |
| Mississippi | $31 |
| Missouri | $21 |
| Montana | $14 |
| Nebraska | $15 |
| Nevada | $20 |
| New Hampshire | $12 |
| New Mexico | $19 |
| New York | $14 |
| North Carolina | $17 |
| North Dakota | $14 |
| Ohio | $18 |
| Oklahoma | $26 |
| Oregon | $14 |
| Pennsylvania | $16 |
| Rhode Island | $18 |
| South Carolina | $17 |
| South Dakota | $12 |
| Tennessee | $20 |
| Texas | $18 |
| Utah | $14 |
| Vermont | $14 |
| Washington | $13 |
| West Virginia | $19 |
| Wisconsin | $13 |
| Wyoming | $14 |
Which factors determine my renters insurance cost?
Let’s dig a bit deeper into this. Here are the factors that can determine your renters insurance.
1. The location of the property
For obvious reasons, the neighborhood you reside in may affect your renters insurance rate. If you live on the coast, you may be more likely to encounter extreme weather. And as an insurance rule-of-thumb, the more likely you are to file a claim, the more your renters insurance will cost.
But your location could also help lower your price! For example, living around the corner from a fire station could help bring costs back down.
2. Your deductible
An insurance deductible is an amount of money you choose when purchasing a policy that will be subtracted from any future claims payouts. So if your $1,000 watch was stolen, and your deductible was $250, your insurance company would pay you $750.
Think of a deductible as your participation in the damage or loss. You’re saying, “I commit X dollars to any claim, and my insurance company will cover the rest.”
The higher your deductible is, the lower your premium could be, but keep in mind that a higher deductible also means you’ll pay a lot more out of pocket in the event of a claim. Different people have different preferences – you’ll have to decide what’s right for yourself at the end of the day.
Btw, you can’t make a claim for anything lower than your deductible. So if the replacement cost of your item is lower than your deductible, there’s no point in making a claim since your insurance company won’t be able to reimburse you for anything.
3. The number of your previously filed claims
If your claims history is pretty extensive, meaning you’ve filed a couple of claims over the last few years, this won’t go unnoticed. Even if they were filed with a different insurance provider, your current insurer will know. This means that they’ll assume that your increased likelihood to file claims will put them at a higher risk, which in turn they insure against by raising your monthly insurance premium.
4. The amount of coverage you choose
The amount of coverage you choose in each category—like loss of use, personal property, and liability coverage—has an impact on the final price of your premium.
At Lemonade, a basic renters insurance policy starts at $5 a month and includes $10,000 of personal property coverage. You’ll probably want to get Extra Coverage for those big-ticket items. And with Lemonade’s Live Policy, it’s easier than you’d imagine.
So if you decide your personal belongings are worth around $40,000, you’ll most likely pay more than if your stuff was worth $20,000. If you’re lying awake at night wondering ‘how much is renters insurance?’, first consider how much renters insurance coverage you’ll need, and then you can look into adjusting that premium.
How can I lower my renters insurance cost?
While monthly prices may cost as much as a latte, adding all of your swag to your policy might leave you looking to lower your price. Luckily, there are some things you can do to help lower your premium.
Security devices
Your home doesn’t need to be ‘smart’ in order to install some devices that will help to lower renters insurance cost. Start with a standard fire alarm and burglar alarm, and you’ve already lowered your risks (for additional tips to secure your home, check out this post). And lowered risks equals lowered premiums. Which equals more lattes?
Bundling
In addition, some insurers might offer you a discount if you choose to buy several insurance policies with them. Bundling your renters policy with other Lemonade products, such as pet insurance or car insurance, will get you a discount.
Don’t forget: You can always update your coverage limits, whenever and wherever, on the Lemonade app with no brokers or paperwork involved.
What does a basic renters insurance policy cover?
There are more reasons to buy a renters insurance policy than you probably thought. As already hinted to before, a typical renters insurance policy covers three main areas: personal property, temporary living expenses, and personal liability/medical bills.
If you want to take a deep dive into the topic, here’s more on what renters insurance does and doesn’t cover.
How much renters insurance do I need?
So you’ve been told you need renters insurance, but aren’t sure exactly how much coverage you need…
Renters insurance coverage is kind of like an umbrella. It protects you from a range of bad things that could happen to you and your stuff.
When you sign up for Lemonade renters insurance you’ll be asked to pick a coverage amount. This means you’ll need to pick how much you’ll want your policy to cover in the event something happens. For let’s say your bag was stolen—how much would you need back to cover the value of the stolen stuff?
Your renters insurance policy is split up into 4 different coverage areas:
- Personal property
- Personal liability
- Loss of use
- Medical payments
Weigh up how much you think you need in terms of your belongings and lifestyle, and how much you think you can pay monthly. Picking higher coverage will push up your monthly premiums slightly, but on the other hand you don’t want to be left without the right amount of coverage in the worst case scenario.
If you’re not sure how much your stuff (ie. Personal Property) is worth, here’s a good tip to figure it out.
Look around your apartment, and mentally calculate the value of all your stuff. How much are your things worth? Think about clothing, furniture, and electronics, but don’t forget about your stuff outside your home, like your bicycle, or that old trumpet you left at your parents’ place.
Long story short, you’ve probably got more stuff than you think…
Follow these simple steps :
1. Walk around your place, and take a video of everything you have
2. Make a list of your most expensive items and estimate how much they cost
3. Figure out how much your bulk items (like clothes) are worth
4. Add this up to determine how much coverage you’ll need
Always round up to the nearest $10,000. So, let’s say you have $18,000 worth of items, you should pick around $20,000 for your Personal Property coverage.
Standard policies start with $10,000 of Personal Property. Boosting your coverage to $30,000 is usually the safer thing to do, and it’s not too pricey.
As for additional coverage – to insure pricier items like jewelry, cameras, musical instruments, bikes, and fine art – you can generally add stuff separately. This is known as scheduled personal property coverage, or ‘Extra Coverage,’ as we call it at Lemonade.
Still not sure what amount of coverage is right for you? Check out our easy guide to how much renters insurance I need?
How does Lemonade keep its rates affordable?
We like to think that our renters insurance rates are quite competitive—and the easiest way to determine your personal price is to get a quote online, which only takes a few minutes.
But let’s be clear: Affordable doesn’t have to mean cheap or unreliable. Lemonade has worked to leverage AI to keep our prices low (long before it was the buzzword on everyone’s lips). We’ve also relied on learnings from behavioral economics that we believe have helped to cut down on fraud.
Lemonade uses AI technology to make insurance way more efficient, enabling renters to score great coverage for incredible prices.
So while the average Lemonade Renters policy in the U.S. only costs around $14/month as of March 31, 2023, you’re able to protect your stuff—and more—without breaking the bank. Remember, you can always try to save even more money by changing your deductible, or lowering your coverage amounts, although that might mean you end up paying more later in the event of a claim.
Which states currently offer Lemonade Renters insurance?
Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, Washington, D.C. (not a state… yet), and Wisconsin.
*This average price is based on all current Lemonade Renters policyholders, regardless of coverage limits, deductibles, or add-ons.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
