Renters Insurance

Renters Insurance

A 2014 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance. Among renters, only 37 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, 48.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2012, according to the U.S. Census. In California the percentage was 54.6 percent of renters, the highest among all the states. In some of the largest cities, renters significantly outnumber homeowners. In 2010, 69 percent of households rented their homes in New York City, followed by Los Angeles (61.8 percent), Chicago (55.1 percent) and Houston (54.6 percent), according to the U.S. Census. A 2012 report from the latest U.S. Census also shows that the number of people living in city centers is increasing, with Chicago experiencing the largest numeric gain in its downtown area.

The renter share of all households in the United States increased steadily from 34.1 percent in 2009 to 34.6 percent in 2010 to 35.4 percent in 2011, according to an April, 2013 report by the Census. In 2011 the metropolitan areas with the highest share of renting households were Los Angeles-Long Beach-Santa Ana, CA (50.8 percent), followed by New York-Northern New Jersey-Long Island, NY-NJ-PA (48.9 percent), San Diego-Carlsbad-San Marcos, CA (46.7 percent), Las Vegas-Paradise, NV (46.4 percent) and San Francisco-Oakland-Fremont, CA (46.3 percent). (Note: each metropolitan area encompasses a broader area than an individual city). Young adults are more likely than other age groups to live in rental housing, with 72 percent of householders under age 30 or younger living in rental housing, according to an analysis by the National Multi Housing Council. Relative to other households, renters are also more likely to be single-person households, according to Harvard’s 2013 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, 2003-2011

Year Homeowners (1) Percent change Renters (2)  Percent change
2003 $668 12.6% $192 3.2%
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 0.0
2009 880 6.0 184 1.1
2010 909 3.3 185 0.5
2011 978 7.6 187 1.1

(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.

Source: ©2013 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 2014 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance but only 37 percent of renters had renters insurance.
  • The U.S. home ownership rate was 65.4 percent in 2012, down from 66.1 percent in 2011, 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 renter occupied, followed by Los Angeles (61.8 percent), Chicago (55. 1 percent) and Houston (54.6 percent).
  • There were 10.7 million renters policies in 2011, up by 10 percent from 9.7 million in 2010, and up by 53 percent from 7.0 million in 2006.

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE BY STATE, 2011 (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 (2)
Alabama  $1,163 6 $230 4 Montana  $818 28 $147 40
Alaska  924 21 171 26 Nebraska  958 20 151 37
Arizona  675 43 200 12 Nevada  689 42 199 13
Arkansas  1,029 15 220 7 New Hampshire  811 29 152 36
California (5) 967 18 208 11 New Jersey  915 22 168 28
Colorado  961 19 175 23 New Mexico  793 31 189 16
Connecticut  1,096 10 196 15 New York  1,097 9 210 10
D.C. 1,083 12 167 29 North Carolina  869 25 132 42
Delaware 664 44 159 32 North Dakota  969 17 117 43
Florida  1,933 1 210 10 Ohio  644 45 183 17
Georgia  906 24 228 5 Oklahoma  1,386 5 235 3
Hawaii  907 23 176 22 Oregon  559 49 170 27
Idaho  518 50 160 31 Pennsylvania  744 37 154 35
Illinois  822 27 172 25 Rhode Island  1,139 7 183 17
Indiana  779 33 179 19 South Carolina  1,091 11 199 14
Iowa  713 41 149 39 South Dakota  721 39 117 43
Kansas  1,103 8 177 21 Tennessee  915 22 213 9
Kentucky  839 26 175 23 Texas (6) 1,578 3 225 6
Louisiana  1,672 2 238 2 Utah  563 48 147 40
Maine  714 40 150 38 Vermont  748 36 155 34
Maryland  800 30 161 30 Virginia  782 32 155 34
Massachusetts  1,072 13 213 8 Washington  626 46 174 24
Michigan  774 34 208 11 West Virginia  743 38 178 20
Minnesota  1,056 14 150 38 Wisconsin  592 47 133 41
Mississippi  1,409 4 252 1 Wyoming  770 35 156 33
Missouri  1,022 16 182 18 United States $978   $187  

(1) Includes policies written by Citizens Property Insurance Corp. (Florida) and Citizens Property Insurance Corp. (Louisiana), Alabama Insurance Underwriting Association, Mississippi Windstorm Underwriting Association, North Carolina Joint Underwriting Association and South Carolina Wind and Hail Underwriting Association. Other southeastern states have wind pools in operation and their data may not be included in this chart.
(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: ©2013 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, 2012

State Percent Rank (1) State Percent Rank (1)
Alabama 68.8% 13 Montana 67.1% 20
Alaska 63.4 40 Nebraska 66.3 29
Arizona 62.6 41 Nevada 54.9 48
Arkansas 66.2 31 New Hampshire 70.9 7
California 54.0 49 New Jersey 65.1 36
Colorado 64.0 38 New Mexico 67.7 17
Connecticut 66.9 23 New York 53.7 50
Delaware 70.8 8 North Carolina 65.4 35
D.C. 41.5 51 North Dakota 65.0 37
Florida 65.6 34 Ohio 66.3 29
Georgia 63.7 39 Oklahoma 66.4 27
Hawaii 56.9 47 Oregon 61.6 45
Idaho 68.4 14 Pennsylvania 68.9 12
Illinois 66.6 25 Rhode Island 60.0 46
Indiana 69.4 10 South Carolina 68.1 16
Iowa 71.9 2 South Dakota 67.1 20
Kansas 66.4 27 Tennessee 66.7 24
Kentucky 67.0 22 Texas 62.3 42
Louisiana 65.7 33 Utah 69.6 9
Maine 71.4 3 Vermont 71.0 6
Maryland 66.5 26 Virginia 66.2 31
Massachusetts 62.2 44 Washington 62.3 42
Michigan 71.1 5 West Virginia 72.0 1
Minnesota 71.4 3 Wisconsin 67.3 19
Mississippi 68.2 15 Wyoming 69.0 11
Missouri 67.5 18 United States 63.9%  

(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 2012 West Virginia, Iowa, Maine, Minnesota and Michigan 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.

HOUSEHOLD INCOME SPENT ON RENT AND UTILITIES, 2012

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 42.6% 41 Montana 42.3% 44
Alaska 44.3 39 Nebraska 39.4 47
Arizona 47.7 13 Nevada 48.6 9
Arkansas 42.5 42 New Hampshire 46.1 24
California 54.6 1 New Jersey 51.3 3
Colorado 48.6 9 New Mexico 46.0 25
Connecticut 49.6 8 New York 50.4 4
Delaware 45.6 31 North Carolina 44.8 37
D.C. 45.8 28 North Dakota 31.7 51
Florida 54.2 2 Ohio 45.4 32
Georgia 47.7 13 Oklahoma 42.4 43
Hawaii 50.3 5 Oregon 50.0 6
Idaho 45.8 28 Pennsylvania 45.9 26
Illinois 47.0 17 Rhode Island 47.8 12
Indiana 45.4 32 South Carolina 46.3 23
Iowa 41.5 45 South Dakota 36.7 50
Kansas 40.9 46 Tennessee 45.3 34
Kentucky 42.7 40 Texas 44.5 38
Louisiana 45.7 30 Utah 46.4 20
Maine 47.2 16 Vermont 46.9 18
Maryland 48.0 11 Virginia 46.4 20
Massachusetts 46.8 19 Washington 47.7 13
Michigan 49.8 7 West Virginia 38.9 48
Minnesota 45.3 34 Wisconsin 45.9 26
Mississippi 45.2 36 Wyoming 38.8 49
Missouri 46.4 20 United States 48.1%  

(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, 48.1 percent of renters spent at least 30 percent of their household income on rent and utilities in 2012.
  • In 2012 North Dakota, South Dakota, Wyoming, West Virginia and Nebraska had the lowest  percentage of rental units in which occupants spent 30 percent or more of their income on rent. California, Florida, New Jersey, New York and Hawaii had the highest percentage.