As a renter, you should be familiar with the renters insurance statistics, especially nowadays, in light of the ongoing pandemic and the economic consequences it caused.
Unfortunately, the consciousness regarding this issue isn’t at a high level. People are still struggling to coordinate between their everyday life and new circumstances that took place. Still, we should keep in mind that securing ourselves as renters might be more important these days than ever before.
Thus, stay with us and get familiar with all the relevant statistics on this topic.
Renters Insurance Statistics (Editor’s Choice)
- 41.5% of renters spent a minimum of 30% of their income on rent in 2019.
- Theft is the most common claim regarding renters insurance.
- 25% of examinees feel like the information on renter’s policies isn’t concise enough.
- The number of high-income renters has been on the rise since 2016.
- In 2019, New York was the metropolitan area with the highest percentage of renting households.
- Louisiana is the most expensive state for homeowners insurance.
- Renters’ insurance in Michigan costs $155 a year.
- Renters’ insurance in Utah costs $135 per year.
Renters Insurance Facts
Even though trends regarding renters insurance are prone to change, some facts seem consistent over the years. For example, every household usually spends a large part of their income on rent, and it doesn’t seem like this will change any time soon.
1. 41.5% of renters spent a minimum of 30% of their income on rent in 2019.
Judging by US Census’ renters insurance stats, almost half of renters spent at least 30% of their household income on rent and utilities. Also, Florida is the state with the highest percentage among all states—52.4%.
2. Theft is the most common claim regarding renters insurance.
This fact tells a lot about the society we live in. Furthermore, the process of filing a renters’ insurance claim isn’t complicated. In conclusion, if you are a renter, it is best to keep your possessions protected.
By the way, storm damage and flooding are the next two most common claims.
3. 27% of renters insurance customers have difficulties understanding what their policy covers.
Renters insurance statistics point out that most examinees stated the insurance plan was confusing and difficult to understand. Also, many of them could hardly understand what the policy covered and comprehend the deductible.
This should be a signal for the renters’ insurance providers to try and make contracts clearer and easier to understand for an average customer. It is of essential importance that users know what their policy covers, and what their rights and obligations are.
4. 33% of consumers stated that more detailed information would make shopping easier.
Renters insurance facts show that a third of consumers say that renters insurance often doesn’t explain all the required information. Thus, they feel like the purchase would be easier if the policy provided more detailed information. In addition, the same number of examinees stated the comparisons between plans should be more explicit.
5. 25% of examinees think the information on renter’s policies isn’t concise enough.
A fourth of questioned customers explained that the information provided by the company should be more concise. Almost the same percentage of respondents (24% to be precise) feel like renter insurance rates aren’t crystal clear and the pricing information needs to be more transparent.
6. 84% of customers plan to keep their current renters’ insurance coverage.
The majority of respondents are satisfied with their current rent insurance coverage. Thus, they are willing to keep the same policy. On the other hand, 11% plan to increase their coverage, while only 5% want to decrease it.
Homeowners vs. Renters Statistics
In the last few years, the number of rented units (as opposed to homeowners) has been through some changes. These days, the number of people who own their apartments is dropping.
7. In 2021, the homeownership rate dropped by 2% in the US.
In Q2 and Q3 2021, the homeownership rate stood at 65.4 percent, down from 67.4 percent in Q3 2020. Moreover, New York state renters insurance statistics from 2020 show that NY had 53.6% of owner-occupied households. West Virginia was first with 78.2%, while Delaware was second with 77.9%, and Maine was third with 77.1%.
8. The renter share of occupied housing units decreased to 35.4% in 2019.
Even though the renter share had increased from 2010 to 2016, it began declining since then, renters insurance statistics and facts confirm. To illustrate, the rate was 36.4% in 2016, and it fell to 35.4% in 2019.
It is interesting to note that 49% of rental housing in 2019 belonged to people younger than 30.
9. Renting is now more common among family households and people between 35 and 64.
In the 2000s (and the years before that), renters insurance industry statistics imply that families and people from 35 to 64 were usually owners of their homes. However, since 2016, the trend has changed, and families and the stated age groups more often become renters.
10. The number of high-income renters has been on the rise since 2016.
We’ll take a step back here since the last available data is from 2018. Still, between 2016 and 2018, the number of high-income renters increased. That is a radical change compared to previous years.
In comparison, 93% of renters’ growth was made by low-income households in the 2000s, renters insurance information facts show.
11. In 2019, New York was the metropolitan area with the highest percentage of renting households (27%).
It is expected that the Big Apple has the highest percentage of renting households, as it is a city where most of its population wasn’t born there. As expected, Los Angeles follows New York with 24%. San Diego and Miami share third place, with 21% of renting households. Also, San Jose is fourth with 20%, based on 2019 research.
Renters Insurance Cost
We have already mentioned the low number of renter insurance users, even though the insurance itself can be affordable. Moreover, we’ve tried to find some of the cheapest renters insurance policies for you and show you how much time you need to get an insurance policy.
12. The average renters insurance price is $326 annually.
This means that the average cost of renter insurance in the US is $27 monthly. That is the insurance policy price with a recommended coverage level of $40,000. Of course, the cost differs based on the coverage level and your state. Thus, it is best to consult an agent and see which option will suit your needs.
13. On average, it takes less than half an hour to get renters’ insurance.
This is one of the encouraging statistics on renters insurance. In most companies, it can take anything from five minutes to half an hour to apply for this type of insurance. Still, the approval time depends on the company.
When signing a policy, you decide when it will begin. You can sign the day you bought the policy or some day in the future (it can usually start in a few months tops, usually three).
Renters Insurance Trends
In times of progressing and transforming digitalization, the trends in the insurance industry have changed as well. Here are some of the hottest trends in the last few years.
14. 51% of consumers consult an insurance agent before purchasing renters insurance.
More than half of surveyed people said they would consult an insurance agent before buying a renters policy, renters insurance facts prove. Keep in mind that it is always best to consult an agent and get familiar with all the options you have in front of you since this might save you from a potential financial loss.
15. 73% of customers who have used an agent earlier would do it again.
Lately, it looks like people are more willing to take advice from an expert and ensure the best yet economically affordable policy to meet their requests. On the other hand, 12% of consumers who didn’t use an agent earlier would do it the next time they purchase a renters’ policy.
16. Renters’ insurance market share is estimated to be worth $4.0 billion in 2022.
Although the growth in the last few years (2017 to 2022) has been much higher—1.9%, the market size is expected to decline to -1.7 in 2022. This is a little step back for the industry. Still, it is somewhat expected, with the pandemic and the effect it had on the economy in general.
Renters Insurance Stats by State
Not only do the prices of renters’ insurance differ from one company to another, but they also vary from one state to another.
17. Louisiana is the most expensive state for homeowners insurance.
The average expenditure in Louisiana is $2,037. Oklahoma is very close, with $2,000, while Florida is slightly cheaper, with average spending of $1,988. Texas is fourth with $1,982, followed by Rhode Island with $1,731.
On the other hand, the cheapest renters insurance cost is in Oregon, with an average of only $727. Utah, Wisconsin, and Nevada follow with less than $800.
18. In 2019, West Virginia had the highest percentage of owner-occupied housing units.
Besides West Virginia, there are Delaware, Maine, and Alabama. On the other hand, the District of Columbia has the lowest share of the housing units occupied by owners. The next one is New York, followed by California, Hawaii, and Nevada.
19. Renters insurance in Michigan costs $155 a year.
If you were wondering ‘How much is renters insurance in Michigan?’, here is the answer. This means its rates are lower by $29 compared to the national average.
Still, to make sure you have bought the most economical renters’ insurance, you should compare the prices across the state. For example, companies like Frankenmuth Insurance offer low prices, up to $102 a year. The next most affordable company would be Hastings Mutual with $111 annually.
20. Renters insurance in Utah costs $135 per year.
So, we’ve seen that Michigan is rather affordable when it comes to renters’ insurance prices. But how much is renters insurance in Utah? Utah offers renters’ insurance policies cheaper than the national average. The typical fee for annual insurance would be $135, which is $49 less than the national average.
Allstate seems to have the cheapest offer of $105 for a year, followed by AAA, whose insurance costs $110. State Farm and MetLife come next, with average prices of around $121.
21. Renters insurance in Oregon will cost you $114 annually.
You can purchase renters’ insurance in Oregon for less money than in other states. So, how much is renters insurance in Oregon? While the national average is $159, it is about $46 less in Oregon. So, Oregon renters insurance is cheaper by almost a third of the national fee—29%, to be exact. Of course, the price differs from one company to another, but MetLife is said to have the lowest prices, as low as $88 annually.
22. Renters’ insurance in Arizona is $157 a year.
As opposed to the three states we’ve previously discussed, Arizona’s average renters’ insurance cost is higher than the national average. Still, exactly how much is renters insurance in AZ? To illustrate, renters’ insurance in Arizona is $27 higher than in other states.
Furthermore, American Family offers one of the most economical renters’ insurance policies, costing $121 annually. In second place is ACA with $122, while State Farm, Farm Bureau and Travelers offer $126, $127, and $129, respectively.
23. Renters insurance in California costs $195 a year.
The renters insurance in California cost is slightly higher than the national average. While the national average is around $160 a year or $13 per month, in California it is $16 per month. State Farm offers the lowest costs for policies, with an average of $13 monthly, which is $3 less than the state’s average. Besides State Farm, Liberty Mutual offers similar prices, while the policies of others are usually higher.
Why Are Renters Insurance Statistics Important?
Even though most renters aren’t aware they need renters’ insurance, it is a great benefit, especially for people living in places prone to natural disasters. Of course, people aren’t excited about purchasing renter’s insurance in the heat of the pandemic, but if you give it a thought, it can turn out to be more valuable than you believe.
In conclusion, renters insurance can help you preserve your economic independence if anything goes wrong, from a natural disaster to a theft.
People Also Ask
What percentage of renters have renters insurance?
Unfortunately, only 57% of renters have renters insurance. That may come off as a surprise, considering the amount of money they can save in case of a disaster or any other issue covered by the insurance policy. Also, the average cost of this type of insurance can be pretty low and more than affordable. If you are one of the renters without renters insurance, maybe it is time to change your perspective and view on the issue.
Who has the cheapest rental insurance?
The pricing depends on the particular company and the state you live in. In this regard, Oregon has the lowest prices—around $706 a year. Furthermore, Utah, Idaho, and Nevada have similarly low rental insurance prices.
On the other hand, Louisiana is the most expensive state regarding this type of insurance. There, annual insurance will cost you around $1,000 (the precise average price is $955). Florida is the second most expensive, with an average annual fee of $1,960. Texas and Oklahoma are next, with the prices of around $1,950.
How much is State Farm renters insurance monthly?
State Farm offers one of the lowest prices for renters insurance. For example, its policy of up to $30,000 in personal property coverage is more than affordable. You will pay $144 a year for it, or $12 every month. You have to agree that it is economical to insure the property you live in for the price of a couple of drinks in a cafe. The company’s insurance policy can combine with other types of insurance (for example, renters and auto) for an additional discount.
How long does it take to get approved for renters insurance?
In most companies, you can apply for your renters’ insurance in less than half an hour, while in some, you can do it even in five minutes. Still, the time for approval depends on the specific company. Another benefit is that, when signing a policy, you decide when it will begin. You can sign the day you purchased the policy or some day in the future (it can usually start in a few months tops, usually three).
What is a good renters insurance rate?
A reasonable renters insurance rate depends on the state you live in. Nonetheless, we have already mentioned State Farm as a company with very affordable insurance rates. Also, it has offices in all 50 states.By contrast, Louisiana has the highest prices—$2,000 a year. Florida, Texas, and Oklahoma are also very expensive, with an average of around $1,960. On the other hand, if you want to save some pennies, renters insurance statistics indicate you should live in Oregon, Utah, Idaho, or Nevada.