Facts + Statistics: Renters insurance

The average homeowners insurance premium rose by 1.6 percent in 2016, following a 3.6 percent increase in 2015, according to a January 2019 study by the National Association of Insurance Commissioners, the latest data available. The average renters insurance premium fell 1.6 percent in 2016 after falling 1.1 percent in 2015.

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 renter share 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, 2007-2016

 

Year Homeowners (1) Percent change Renters (2)  Percent change
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
2014 1,132 3.3 190 1.1
2015 1,173 3.6 188 -1.1
2016 1,192 1.6 185 -1.6

(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: © 2018 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 Insurance Information Institute’s 2018 Pulse Survey found that 91 percent of homeowners had homeowners insurance, but only 46 percent of renters had renters insurance.
  • The U.S. homeownership rate was 64.4 percent in third quarter 2018, up from 63.9 percent a year ago, 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, 2016 (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  $1,386 12 $245 4 Montana $1,130 23 $145 44
Alaska  974 34 148 43 Nebraska 1,402 11 141 46
Arizona  803 46 181 19 Nevada 742 48 182 17
Arkansas  1,348 13 223 7 New Hampshire 965 36 154 37
California (5) 1,000 32 200 9 New Jersey 1,174 22 163 27
Colorado  1,446 10 156 36 New Mexico 996 33 198 10
Connecticut  1,455 8 196 14 New York 1,309 15 198 10
Delaware 816 45 159 30 North Carolina 1,098 26 157 33
D.C. 1,225 19 163 27 North Dakota 1,239 18 113 51
Florida  1,918 3 181 19 Ohio 850 43 182 17
Georgia  1,200 20 230 6 Oklahoma 1,875 4 247 3
Hawaii  1,026 29 154 37 Oregon 659 51 159 31
Idaho  703 49 150 41 Pennsylvania 927 39 157 33
Illinois  1,042 28 167 26 Rhode Island 1,496 7 180 22
Indiana  1,003 31 179 23 South Carolina 1,285 16 188 16
Iowa  945 38 141 46 South Dakota 1,125 24 114 50
Kansas  1,548 5 177 24 Tennessee 1,185 21 207 8
Kentucky  1,085 27 169 25 Texas (6) 1,937 2 241 5
Louisiana  1,967 1 252 2 Utah 664 50 141 46
Maine  866 42 151 39 Vermont 898 41 158 31
Maryland  1,022 30 161 29 Virginia  966 35 151 39
Massachusetts  1,451 9 198 10 Washington 822 44 157 33
Michigan  952 37 197 13 West Virginia 917 40 196 14
Minnesota  1,340 14 142 45 Wisconsin 762 47 132 49
Mississippi  1,525 6 275 1 Wyoming 1,120 25 150 41
Missouri  1,280 17 181 19 United States $1,192   $185  

(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) 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: © 2018 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 Premiums, 2016 (1)

 

Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 Louisiana $1,967 1 Oregon $659
2 Texas (2) 1,937 2 Utah 664
3 Florida 1,918 3 Idaho 703
4 Oklahoma 1,875 4 Nevada 742
5 Kansas 1,548 5 Wisconsin 762
6 Mississippi 1,525 6 Arizona  803
7 Rhode Island 1,496 7 Delaware 816
8 Connecticut 1,455 8 Washington 822
9 Massachusetts 1,451 9 Ohio 850
10 Colorado  1,446 10 Maine 866

(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) 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.

Source:2018 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, 2016

State Percent Rank (1) State Percent Rank (1)
Alabama 68.5% 12 Montana 68.0 16
Alaska 64.5 34 Nebraska 65.3 26
Arizona 63.2 38 Nevada 54.9 48
Arkansas 64.6 33 New Hampshire 70.1 6
California 53.6 49 New Jersey 63.2 38
Colorado 64.8 31 New Mexico 67.4 17
Connecticut 64.8 31 New York 53.3 50
Delaware 69.8 8 North Carolina 64.2 36
D.C. 39.2 51 North Dakota 63.2 38
Florida 64.1 37 Ohio 65.4 25
Georgia 61.5 44 Oklahoma 64.9 30
Hawaii 57.2 47 Oregon 61.7 43
Idaho 68.5 12 Pennsylvania 68.5 12
Illinois 65.3 26 Rhode Island 58.0 46
Indiana 68.3 15 South Carolina 68.6 11
Iowa 70.6 4 South Dakota 67.2 19
Kansas 65.7 24 Tennessee 65.1 29
Kentucky 66.8 20 Texas 61.1 45
Louisiana 64.3 35 Utah 69.9 7
Maine 71.9 2 Vermont 69.8 8
Maryland 65.9 23 Virginia 65.3 26
Massachusetts 62.0 42 Washington 62.5 41
Michigan 70.3 5 West Virginia 72.4 1
Minnesota 71.3 3 Wisconsin 66.7 21
Mississippi 67.3 18 Wyoming 68.8 10
Missouri 66.1 22 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, 2016

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 41.8% 34 Montana 39.0% 47
Alaska 38.2 48 Nebraska 40.7 39
Arizona 44.3 22 Nevada 47.3 10
Arkansas 39.2 46 New Hampshire 41.8 34
California 52.6 1 New Jersey 49.1 6
Colorado 49.7 5 New Mexico 42.4 30
Connecticut 48.1 8 New York 49.8 4
Delaware 45.6 16 North Carolina 42.6 28
D.C. 45.5 18 North Dakota 36.3 51
Florida 52.1 2 Ohio 42.0 33
Georgia 45.0 20 Oklahoma 39.4 45
Hawaii 51.5 3 Oregon 48.4 7
Idaho 41.3 37 Pennsylvania 43.1 25
Illinois 45.3 19 Rhode Island 45.7 15
Indiana 42.3 31 South Carolina 43.1 25
Iowa 40.5 41 South Dakota 37.2 50
Kansas 40.6 40 Tennessee 42.2 32
Kentucky 40.2 42 Texas 43.9 23
Louisiana 47.4 9 Utah 42.5 29
Maine 42.8 27 Vermont 46.7 12
Maryland 46.3 13 Virginia 45.6 16
Massachusetts 46.8 11 Washington 44.9 21
Michigan 45.8 14 West Virginia 40.0 44
Minnesota 43.3 24 Wisconsin 41.8 34
Mississippi 40.8 38 Wyoming 37.5 49
Missouri 40.2 42 United States 46.1%  

(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, 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.

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