If you’re a renter, a comprehensive renters insurance policy is important. Renters insurance covers your belongings against potential damage and losses, such as theft. It also protects you against third-party lawsuits related to bodily injury and property damage.
Renters insurance premiums depend on several factors, but your location is one of the biggest. For example, living in a state prone to natural disasters—such as hurricanes or tornadoes—could affect your policy. If your city has a high crime rate, your renters insurance might be more expensive.
Find out how your state can affect your renters insurance in terms of coverage requirements and cost.
In this guide:
- Do any states require renters insurance?
- Do available limits and coverages change by state?
- Do any insurance companies offer coverage in some states but not others?
- Does your home state affect your renters insurance premium?
Do any states require renters insurance?
No states have laws requiring tenants to carry renters insurance. However, in most states, landlords can require tenants to get renters insurance as part of their lease agreement. One exception is Oklahoma, where landlords are not allowed to require renters insurance.
Even if you aren’t required to have renters insurance, this coverage provides valuable protection in case of damage, vandalism, theft, and lawsuits. Plus, if something happens to your unit, the loss of use portion of your renters insurance will pay for temporary housing, food, and parking while it undergoes repairs.
Do available limits and coverages change by state?
In general, renters insurance coverage limits don’t vary by state. Unlike car insurance, tenants aren’t required to carry a minimum amount of renters insurance. However, the coverage types and limits available will depend on your insurance company.
No matter the state, most standard renters insurance policies include the following coverages:
- Personal property coverage: This policy protects your personal belongings, such as clothing and furniture, against various perils. Most policies have limited coverage for valuable items.
- Loss of use coverage: Loss of use coverage pays for basic living expenses if your unit is damaged and you need to relocate while it’s repaired. This is sometimes called additional living expenses.
- Personal liability coverage: Covers your financial responsibility in the event of a third-party bodily injury or property damage liability claim. It also pays for your legal fees, court costs, and settlements.
- Medical payments coverage: This policy pays for a guest’s medical bills if they get injured at your home. The coverage applies whether or not you were liable for their injury.
Every renters insurance policy is different, but most policies exclude coverage for events such as floods and earthquakes, no matter what state you live in. If you live in a state where these disasters are common, a separate earthquake insurance or flood insurance policy may be worth purchasing.
Just like with other insurance policies, it’s wise to review your coverage at least once a year. You may have acquired additional personal property and want to ensure your renters policy covers it, or you might find a better rate for similar coverage.
Do certain renters insurance companies offer coverage in some states but not others?
Certain renters insurance companies offer coverage in some states but not others. For example, Lemonade, Farmers, and Nationwide don’t sell renters insurance in every state, whereas USAA, State Farm, Liberty Mutual, and Allstate offer renters insurance nationwide.
In the table below, you can see where some of the biggest renters insurance companies do and don’t sell coverage.
|Insurance company||States where coverage is not sold|
|USAA||No states excluded|
|State Farm||No states excluded|
|Allstate||No states excluded|
|Liberty Mutual||No states excluded|
>>Read more: Renters insurance in California
Does your home state affect your renters insurance premium?
The state you live in has an impact on the cost of your renters insurance policy. This is due to a variety of factors, such as crime rates and weather risks.
As of 2019, the average cost of renters insurance in the U.S. is $174 per year, according to the Insurance Information Institute (Triple-I). This breaks down to around $14 per month. However, some states have higher and lower premiums than the national average.
In the table below, you can see which states have the most expensive average renters insurance premiums.
|State||Average annual premium|
These states have the lowest average renters insurance premiums:
|State||Average annual premium|
Do any renters insurance companies offer coverage in all 50 states?
Many renters insurance companies offer coverage in all 50 states. Based on our research, the following companies sell renters insurance coverage nationwide:
What are the most expensive states for renters insurance?
According to data from Triple-I, the most expensive states for renters insurance are:
If you live in one of these states, it’s wise to compare rates from several insurance companies to find the most affordable premium.
What are the cheapest states for renters insurance?
Based on average rate data, the cheapest states for renters insurance are:
- South Dakota
However, remember that renters insurance premiums also depend on your ZIP code. If you live in a major city or a neighborhood with a high crime rate, your premium might be higher than the state average.
What other factors affect renters insurance premiums?
Your renters insurance premium is based on a variety of factors. In addition to your state, your age, gender, claim history, coverage limits, and coverage types can all influence your premium. Comparing quotes can help you find the cheapest renters insurance policy.