Renters Insurance

Renters Insurance

A 2015 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance. Among renters, only 40 percent said they had renters insurance. However, this proportion has been increasing since the first time the question was asked in 2011, when 29 percent of renters said they had renters insurance.

Nationwide, 47.9 percent of renters spent at least 30 percent of their household income on rent and utilities in 2014, according to the U.S. Census. In California the percentage was 53.8 percent of renters, the highest among all the states.

The rentershare of all households in the United States increased steadily from 34.1 percent in 2009 to 37 percent in 2014 according to the Census Bureau. In 2014 large cities with the high proportions of renting households included New York (51 percent), Washington, D.C. (42 percent) and Dallas, Houston and Los Angeles (41 percent each) according to National Multifamily Housing Council’s (NMHC) analysis of U.S. Census statistics. On a state by state basis District of Columbia had the most people living in rental units (35.9 percent) followed by New York (24.3 percent) and California (16.8 percent). The NMHC analysis also found that 51 percent of people living in rental housing were under 30 years old.

Relative to other households, renters are more likely to be single-person households, according to Harvard’s 2015 State of the Nation’s Housing Report. As of early 2013, 37 percent of renters are single-person households, a much larger share than the 23 percent of owner-occupants.

 

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE, UNITED STATES, 2004-2012

Year Homeowners (1) Percent change Renters (2) Percent change
2004 $729 9.1% $195 1.6%
2005 764 4.8 193 -1.0
2006 804 5.2 189 -2.1
2007 822 2.2 182 -3.7
2008 830 1.0 182 (3)
2009 880 6.0 184 1.1
2010 909 3.3 185 0.5
2011 979 7.7 187 1.1
2012 1,034 5.6 187 (3)

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, one- to four-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: © 2015 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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  • A 2015 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance but only 40 percent of renters had renters insurance.
  • The U.S. homeownership rate was 63.4 percent in second-quarter 2015, down from 64.7 percent a year ago to the lowest rate since 1967, 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, 2012 (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  $1,248 6 $239 3 Montana $871 29 $145 46
Alaska  942 25 161 33 Nebraska 1,040 17 150 41
Arizona  691 44 195 17 Nevada 674 46 193 18
Arkansas  1,096 15 215 9 New Hampshire 848 30 150 41
California (5) 980 22 207 12 New Jersey 981 21 166 31
Colorado  1,038 18 169 29 New Mexico 844 31 183 20
Connecticut  1,160 9 196 15 New York 1,158 10 211 11
Delaware 678 45 153 40 North Carolina 927 26 134 48
D.C. 1,103 14 164 32 North Dakota 1,038 18 115 51
Florida  2,084 1 217 8 Ohio 721 43 185 19
Georgia  975 23 226 6 Oklahoma 1,501 4 234 4
Hawaii  957 24 221 7 Oregon 567 50 168 30
Idaho  538 51 157 36 Pennsylvania 804 36 156 37
Illinois  881 28 171 27 Rhode Island 1,233 7 182 21
Indiana  840 33 182 21 South Carolina 1,134 13 196 15
Iowa  779 40 147 45 South Dakota 789 38 118 50
Kansas  1,213 8 174 25 Tennessee 1,008 20 212 10
Kentucky  916 27 171 27 Texas (6) 1,661 3 228 5
Louisiana  1,742 2 242 2 Utah 580 49 145 46
Maine  741 42 149 43 Vermont 782 39 154 39
Maryland  837 34 160 34 Virginia  843 32 158 35
Massachusetts  1,150 11 206 14 Washington 648 47 173 26
Michigan  802 37 207 12 West Virginia 771 41 176 24
Minnesota  1,140 12 149 43 Wisconsin 631 48 130 49
Mississippi  1,314 5 244 1 Wyoming 821 35 156 37
Missouri  1,091 16 182 21 United States $1,034   $187  

(1) See previous chart for state funds and residual markets included.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, one-to four-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) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms. In addition, due to the Texas Windstorm Association (which writes wind-only policies) classifying HO-1, 2 and 5 premiums as HO-3, the average premium for homeowners insurance is artificially high.

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: © 2015 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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PERCENT OF OCCUPIED HOUSING UNITS THAT ARE OWNER OCCUPIED, 2014

 

State Percent Rank (1) State Percent Rank (1)
Alabama 67.7% 15 Montana 66.4% 22
Alaska 62.5 39 Nebraska 65.9 26
Arizona 61.1 44 Nevada 53.6 49
Arkansas 65.8 28 New Hampshire 70.2 6
California 53.7 48 New Jersey 63.3 38
Colorado 63.9 36 New Mexico 66.9 17
Connecticut 66.4 22 New York 53.0 50
Delaware 70.3 5 North Carolina 64.2 34
D.C. 40.6 51 North Dakota 63.8 37
Florida 64.1 35 Ohio 65.3 30
Georgia 62.2 40 Oklahoma 65.1 32
Hawaii 56.7 47 Oregon 60.7 45
Idaho 68.0 13 Pennsylvania 68.8 10
Illinois 65.5 29 Rhode Island 58.8 46
Indiana 68.6 11 South Carolina 68.0 13
Iowa 70.9 4 South Dakota 68.2 12
Kansas 66.6 20 Tennessee 66.1 24
Kentucky 66.1 24 Texas 61.2 43
Louisiana 64.4 33 Utah 69.2 9
Maine 71.3 3 Vermont 70.0 8
Maryland 65.9 26 Virginia 65.3 30
Massachusetts 61.6 42 Washington 61.7 41
Michigan 70.2 6 West Virginia 72.2 1
Minnesota 71.7 2 Wisconsin 66.6 20
Mississippi 67.7 15 Wyoming 66.9 17
Missouri 66.9 17 United States 63.1%  

(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 2014 West Virginia, Minnesota and Maine 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, Nevada, California and Hawaii.

PERCENT OF RENTER OCCUPIED UNITS SPENDING 30 PERCENT OR MORE OF THEIR INCOME ON RENT AND UTILITIES, 2014

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 44.7% 34   Montana 41.1% 44
Alaska 46.8 18   Nebraska 38.8 47
Arizona 45.6 27   Nevada 46.9 16
Arkansas 41.8 43   New Hampshire 46.9 16
California 53.8 1   New Jersey 50.0 6
Colorado 48.1 10   New Mexico 45.8 26
Connecticut 49.7 7   New York 51.4 5
Delaware 46.3 22   North Carolina 46.3 22
D.C. 45.5 29   North Dakota 36.4 49
Florida 53.6 2   Ohio 44.3 36
Georgia 47.5 13   Oklahoma 39.9 46
Hawaii 52.6 3   Oregon 51.9 4
Idaho 41.9 42   Pennsylvania 46.6 19
Illinois 46.3 22   Rhode Island 49.3 8
Indiana 45.4 31   South Carolina 46.3 22
Iowa 40.2 45   South Dakota 35.9 51
Kansas 42.0 41   Tennessee 45.6 27
Kentucky 43.2 40   Texas 45.3 33
Louisiana 45.4 31   Utah 43.7 37
Maine 46.6 19   Vermont 47.2 14
Maryland 48.8 9   Virginia 46.6 19
Massachusetts 47.8 12   Washington 47.1 15
Michigan 48.0 11   West Virginia 37.9 48
Minnesota 45.5 29   Wisconsin 44.6 35
Mississippi 43.5 39   Wyoming 36.2 50
Missouri 43.6 38 United States 47.9%  

(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, 47.9 percent of renters spent at least 30 percent of their household income on rent and utilities in 2014.
  • In 2014 South Dakota, Wyoming, North Dakota and West Virginia had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. California, Florida, Hawaii and Oregon had the highest percentage.