Facts + Statistics: Renters insurance

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The average homeowners insurance premium rose by 3.1 percent in 2018, following a 1.6 percent increase in 2017, according to a January 2021 study by the National Association of Insurance Commissioners, the latest data available. The average renters insurance premium fell 0.6 percent in 2018 marking the fourth consecutive annual decline. Renters insurance premiums fell 2.7 percent in 2017.

Nationwide, 45.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2019, according to the U.S. Census. In Florida the percentage was 52.4 percent of renters, the highest among all the states.

The renter share of all occupied housing units in the United States increased steadily from 33.4 percent in 2010 to 36.4 percent in 2016, according to the Census Bureau, but dropped in the next three years to 35.4 percent in 2019. In 2019 people under the age of 30 accounted for 49 percent of people in rental housing, according to the National Multifamily Housing Council (NMHC).

In 2019 metropolitan areas with the high proportions of renting households included New York (27 percent), Los Angeles (24 percent), San Diego and Miami (both 21 percent), and San Jose (20 percent), according the NMHC’s analysis of U.S. Census statistics. Metropolitan areas are regions that consists of a city and surrounding communities that are linked by social and economic factors, as established by the U.S. Office of Management and Budget and are much larget than the city for which they are named. On a state-by-state basis New York had the most people living in rental units (24 percent) followed by California and North Dakota, both with 17 percent, Maryland with 15 percent and Nevada with 14 percent. 

Renter household growth seems to have plateaued by 2019, according to Harvard’s Joint Center for Housing Studies’ America’s Rental Housing 2020. Meanwhile the number of high-income renters has continued to climb between 2016 and 2018, a sharp reversal of trends in the 2000’s when low-income households drove 93 percent of renter growth. In addition, renting is now more common among age groups and family types such households headed by 35-64 year olds and those with children which in the past were more likely to own their homes.

 
Average Premiums For Homeowners And Renters Insurance, 2010-2019

 

Year Homeowners (1) Percent change Renters (2) Percent change
2010 $909 3.3% $185 0.5%
2011 979 7.7 187 1.1
2012 1,034 5.6 187 (3)
2013 1,096 6.0 188 0.5
2014 1,132 3.3 190 1.1
2015 1,173 3.6 188 -1.1
2016 1,192 1.6 185 -1.6
2017 1,211 1.6 180 -2.7
2018 1,249 3.1 179 -0.6
2019 1,272 1.8 174 -2.8

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(3) Less than 0.1 percent.

Source: © 2022 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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  • The U.S. homeownership rate stood at 65.4 percent in the second and third quarters of 2021, down 2 percentage points from 67.4 percent in the third quarter of 2020, according to the U.S. Census Bureau.
  • The 2010 Census showed that in some of the largest cities renters outnumbered owners, including New York, where 69.0 percent of households were occupied by renters, followed by Los Angeles (61.8 percent), Chicago (55.1 percent) and Houston (54.6 percent).

 

 
Average Premiums For Homeowners And Renters Insurance By State, 2019 (1)

 

  Homeowners Renters   Homeowners Renters
State Average
premium (2)		 Rank (3) Average
premium (4)		 Rank (3) State Average
premium (2)		 Rank (3) Average
premium (4)		 Rank (3)
Alabama  $1,463 12 $219  5 Montana $1,287 19 $149  40
Alaska  962 38 182  14 Nebraska 1,564 9 144  46
Arizona  850 46 164  24 Nevada 791 48 179  19
Arkansas  1,456 13 208  7 New Hampshire 1,021 34 146  45
California (5) 1,177 28 175  20 New Jersey 1,237 23 156  35
Colorado  1,618 7 159  28 New Mexico 1,126 30 186  10
Connecticut  1,531 10 183  13 New York 1,357 16 185  11
Delaware 908 43 153  36 North Carolina 1,193 26 159  29
D.C. 1,275 20 158  30 North Dakota 1,236 24 115  51
Florida  1,988 3 180  18 Ohio 853 45 163  26
Georgia  1,362 15 209  6 Oklahoma 2,000 2 235  3
Hawaii  1,182 27 174  21 Oregon 727 51 158  31
Idaho  799 47 148  43 Pennsylvania 955 39 153  37
Illinois  1,054 33 157  32 Rhode Island 1,731 5 182  16
Indiana  983 36 164  25 South Carolina 1,303 17 182  17
Iowa  913 42 132  48 South Dakota 1,218 25 117  50
Kansas  1,519 11 167  23 Tennessee 1,259 21 189  8
Kentucky  1,172 29 162  27 Texas (6) 1,982 4 220  4
Louisiana  2,037 1 236  2 Utah 743 50 149  41
Maine  936 41 149  39 Vermont 947 40 151  38
Maryland  1,125 31 157  33 Virginia  1,080 32 149  42
Massachusetts  1,617 8 186  9 Washington 908 44 157  34
Michigan  999 35 182  15 West Virginia 968 37 185  12
Minnesota  1,433 14 135  47 Wisconsin 750 49 127  49
Mississippi  1,622 6 252  1 Wyoming 1,244 22 147  44
Missouri  1,299 18 173  22 United States $1,272    $174  

(1) Includes state funds, residual markets and some wind pools.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Ranked from highest to lowest. States with the same premium receive the same rank.
(4) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(5) Data provided by the California Department of Insurance.
(6) Texas data were obtained from the Texas Department of Insurance.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: ©2022 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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Top 10 Most Expensive And Least Expensive States For Homeowners Insurance Premiums, 2019 (1)

 

Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 Louisiana $2,037 1  Oregon $727
2 Oklahoma 2,000 2  Utah 743
3 Florida 1,988 3  Wisconsin 750
4 Texas (2) 1,982 4  Nevada 791
4 Rhode Island 1,731 5  Idaho 799
5 Mississippi 1,622 6  Arizona  850
6 Colorado  1,618 7  Ohio 853
7 Massachusetts 1,617 8  Delaware 908
8 Nebraska 1,564 9  Washington 908
9 Connecticut 1,531 10  Iowa 913

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) Texas data were obtained from the Texas Department of Insurance.

Source: © 2022 National Association of Insurance Commissioners (NAIC). Further reprint or distribution strictly prohibited without written permission of NAIC.

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Percent Of Occupied Housing Units That Are Owner Occupied, 2021

 

State Percent Rank (1) State Percent Rank (1)
Alabama 70.0% 13 Montana 69.5% 17
Alaska 66.8 35 Nebraska 67.8 23
Arizona 67.6 25 Nevada 59.1 48
Arkansas 67.0 32 New Hampshire 72.5 7
California 55.9 49 New Jersey 64.4 40
Colorado 66.8 35 New Mexico 69.5 17
Connecticut 66.6 37 New York 55.4 50
Delaware 72.6 6 North Carolina 66.9 34
D.C. 41.6 51 North Dakota 63.1 45
Florida 67.4 29 Ohio 67.2 31
Georgia 66.0 38 Oklahoma 65.5 39
Hawaii 62.6 46 Oregon 63.8 42
Idaho 71.9 8 Pennsylvania 69.9 14
Illinois 67.5 27 Rhode Island 63.3 43
Indiana 71.1 12 South Carolina 71.8 10
Iowa 71.9 8 South Dakota 69.4 19
Kansas 67.0 32 Tennessee 67.5 27
Kentucky 68.7 21 Texas 62.6 46
Louisiana 67.3 30 Utah 69.7 15
Maine 74.8 2 Vermont 72.7 5
Maryland 67.8 23 Virginia 67.6 25
Massachusetts 63.2 44 Washington 64.0 41
Michigan 73.2 3 West Virginia 75.2 1
Minnesota 73.0 4 Wisconsin 68.1 22
Mississippi 69.7 15 Wyoming 71.4 11
Missouri 68.8 20 United States 65.4%  

(1) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • In 2019 West Virginia, Maine, Minnesota and Wyoming had the highest percentage of owner-occupied housing units.
  • The District of Columbia had the lowest percentage of owner-occupied units, followed by New York, California, Nevada, and Hawaii.

 

 
Percent Of Renter Occupied Units Spending 30 Percent Or More Of Their Income On Rent And Utilities, 2021

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 43.4% 34 Montana 37.9% 50
Alaska 45.0 25 Nebraska 42.7 38
Arizona 47.9 13 Nevada 52.1 4
Arkansas 39.9 47 New Hampshire 42.6 39
California 52.7 3 New Jersey 48.9 9
Colorado 50.5 5 New Mexico 44.3 29
Connecticut 49.1 8 New York 50.3 6
Delaware 47.0 16 North Carolina 44.5 27
D.C. 45.1 24 North Dakota 38.5 49
Florida 54.9 1 Ohio 40.6 44
Georgia 47.6 14 Oklahoma 42.0 41
Hawaii 53.4 2 Oregon 48.6 10
Idaho 43.2 36 Pennsylvania 44.2 31
Illinois 44.4 28 Rhode Island 45.8 21
Indiana 43.3 35 South Carolina 44.9 26
Iowa 41.2 42 South Dakota 35.0 51
Kansas 39.7 48 Tennessee 43.9 33
Kentucky 40.6 44 Texas 47.5 15
Louisiana 48.4 12 Utah 45.3 23
Maine 42.9 37 Vermont 46.8 17
Maryland 49.3 7 Virginia 46.1 19
Massachusetts 48.5 11 Washington 46.3 18
Michigan 46.1 19 West Virginia 41.1 43
Minnesota 45.5 22 Wisconsin 40.6 44
Mississippi 44.3 29 Wyoming 44.0 32
Missouri 42.2 40 United States 47.4%  

(1) Percent of renter-occupied units spending 30 percent or more on rent and utilities such as electric, gas, water and sewer, and fuel (oil, coal, etc.) if paid by the renter.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • Nationwide, 45.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2019.
  • In 2019 North Dakota, South Dakota, West Virginia and Kentucky had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. Florida, California, Vermont and Hawaii had the highest percentage.

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