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, 2005-2013

Year Homeowners (1) Percent change Renters (2) Percent change
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)
2013 1,096 6.0 188 0.5

(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: © 2016 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, 2013 (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 $1,323 8 $245 4 Montana $938 29 $143 48
Alaska 980 25 168 28 Nebraska 1,151 16 149 41
Arizona 724 44 192 17 Nevada 687 46 191 18
Arkansas 1,183 14 212 9 New Hampshire 885 36 149 41
California (5) 966 26 203 13 New Jersey 1,058 21 163 31
Colorado 1,160 15 168 28 New Mexico 898 34 186 20
Connecticut 1,274 9 200 14 New York 1,213 13 209 10
Delaware 709 45 152 40 North Carolina 1,008 23 146 46
D.C. 1,150 17 158 33 North Dakota 1,078 20 113 51
Florida 2,115 1 208 11 Ohio 763 43 188 19
Georgia 1,044 22 226 6 Oklahoma 1,654 4 245 4
Hawaii 953 27 215 7 Oregon 568 50 163 31
Idaho 561 51 155 38 Pennsylvania 863 37 157 35
Illinois 938 29 172 26 Rhode Island 1,334 7 178 24
Indiana 887 35 183 21 South Carolina 1,214 12 195 16
Iowa 832 40 147 43 South Dakota 915 31 120 50
Kansas 1,343 6 176 25 Tennessee 1,090 19 213 8
Kentucky 981 24 170 27 Texas (6) 1,837 2 247 2
Louisiana 1,822 3 246 3 Utah 609 49 146 46
Maine 776 42 147 43 Vermont 814 41 153 39
Maryland 904 33 158 33 Virginia  911 32 156 36
Massachusetts 1,263 10 198 15 Washington 676 47 165 30
Michigan 839 39 204 12 West Virginia 844 38 179 22
Minnesota 1,222 11 147 43 Wisconsin 665 48 130 49
Mississippi 1,395 5 250 1 Wyoming 952 28 156 36
Missouri 1,143 18 179 22 United States $1,096   $188  

(1) See footnote 1 on the previous chart for state funds and residual markets included.
(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) 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: ©2016 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.