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, 2020

 

State Percent Rank (1) State Percent Rank (1)
Alabama 74.8% 4 Montana 68.4% 33
Alaska 64.1 44 Nebraska 69.8 25
Arizona 68.7 30 Nevada 61.2 47
Arkansas 68.8 29 New Hampshire 74.5 5
California 55.9 49 New Jersey 64.3 42
Colorado 64.9 40 New Mexico 70.3 22
Connecticut 66.9 37 New York 53.6 50
Delaware 77.9 2 North Carolina 68.7 30
D.C. 42.5 51 North Dakota 64.2 43
Florida 68.7 30 Ohio 69.4 27
Georgia 67.3 35 Oklahoma 71.0 20
Hawaii 58.8 48 Oregon 65.2 39
Idaho 71.5 17 Pennsylvania 69.9 24
Illinois 67.3 35 Rhode Island 64.5 41
Indiana 72.7 12 South Carolina 73.6 10
Iowa 72.1 14 South Dakota 71.4 18
Kansas 69.5 26 Tennessee 70.0 23
Kentucky 72.5 13 Texas 66.5 38
Louisiana 69.1 28 Utah 71.7 16
Maine 77.1 3 Vermont 73.1 11
Maryland 72.0 15 Virginia 70.4 21
Massachusetts 62.7 46 Washington 64.1 44
Michigan 74.3 7 West Virginia 78.2 1
Minnesota 74.5 5 Wisconsin 67.9 34
Mississippi 74.2 8 Wyoming 73.9 9
Missouri 71.1 19 United States 66.6%  

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

Source: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey, March 9, 2021.

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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, 2019

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 40.9% 35 Montana 41.1% 33
Alaska 41.0 34 Nebraska 38.4 47
Arizona 43.4 22 Nevada 48.2 5
Arkansas 38.6 45 New Hampshire 44.3 19
California 50.7 2 New Jersey 46.6 9
Colorado 47.7 6 New Mexico 41.7 31
Connecticut 46.3 11 New York 47.3 8
Delaware 46.6 9 North Carolina 42.6 25
D.C. 40.6 37 North Dakota 35.5 51
Florida 52.4 1 Ohio 40.4 38
Georgia 44.8 16 Oklahoma 39.5 42
Hawaii 49.7 4 Oregon 45.5 14
Idaho 42.7 24 Pennsylvania 43.6 21
Illinois 42.4 26 Rhode Island 45.9 13
Indiana 41.7 31 South Carolina 42.0 28
Iowa 38.6 45 South Dakota 35.9 50
Kansas 39.5 42 Tennessee 42.1 27
Kentucky 38.3 48 Texas 44.8 16
Louisiana 44.4 18 Utah 41.8 29
Maine 39.8 41 Vermont 50.6 3
Maryland 47.4 7 Virginia 42.9 23
Massachusetts 46.3 11 Washington 45.3 15
Michigan 44.3 19 West Virginia 36.3 49
Minnesota 41.8 29 Wisconsin 40.0 40
Mississippi 40.2 39 Wyoming 39.5 42
Missouri 40.7 36 United States 45.1%  

(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, 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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