Facts + Statistics: Renters insurance

The average homeowners insurance premium rose by 1.6 percent in 2017, following a 1.6 percent increase in 2016, according to a November 2019 study by the National Association of Insurance Commissioners, the latest data available. The average renters insurance premium fell 2.7 percent in 2017 after falling 1.6 percent in 2016 and 1.1 percent in 2015.

Nationwide, 46.0 percent of renters spent at least 30 percent of their household income on rent and utilities in 2017, according to the U.S. Census. In California the percentage was 52.5 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 slightly to 36.2 percent in 2017 and again in 2018 to 35.6 percent. In 2018 people under the age of 30 accounted for 50 percent of people in rental housing, according to the National Multifamily Housing Council (NMHC).

In 2017 large cities with the high proportions of renting households included New York (45 percent), Los Angeles (39 percent), San Francisco and Washington, D.C (both 37 percent), and Dallas (36 percent) and according the NMHC’s analysis of U.S. Census statistics. On a state by state basis the District of Columbia had the most people living in rental units (35 percent) followed by New York (24 percent) and California (17 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, 2008-2017

 

Year Homeowners (1) Percent change Renters (2) Percent change
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
2017 1,211 1.6 180 -2.7

(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 and liability of tenants.
(3) Less than 0.1 percent.

Source: © 2019 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 fell in the first two quarters of 2019 but grew to 64.8 percent by the third quarter, back to the same level it was at the end of 2018, 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, 2017 (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  $1,433 12 $235 3 Montana $1,174 24 $146 45
Alaska  959 37 166 28 Nebraska 1,481 10 143 47
Arizona  825 46 178 20 Nevada 755 48 178 20
Arkansas  1,373 13 212 7 New Hampshire 972 35 149 42
California (5) 1,008 32 182 17 New Jersey 1,192 23 165 29
Colorado  1,495 8 159 33 New Mexico 1,017 31 187 15
Connecticut  1,479 11 192 11 New York 1,309 15 194 9
Delaware 833 45 159 33 North Carolina 1,086 28 157 37
D.C. 1,235 20 158 35 North Dakota 1,253 19 120 51
Florida  1,951 2 188 12 Ohio 862 43 175 22
Georgia  1,267 18 219 6 Oklahoma 1,885 4 236 2
Hawaii  1,102 27 185 16 Oregon 677 51 163 30
Idaho  730 49 153 39 Pennsylvania 931 40 158 35
Illinois  1,056 29 167 27 Rhode Island 1,551 6 182 18
Indiana  1,000 33 174 23 South Carolina 1,269 17 188 12
Iowa  964 36 144 46 South Dakota 1,202 21 123 50
Kansas  1,584 5 172 25 Tennessee 1,196 22 199 8
Kentucky  1,109 26 168 26 Texas (6) 1,893 3 232 5
Louisiana  1,968 1 235 3 Utah 692 50 151 41
Maine  882 42 149 42 Vermont 918 41 155 38
Maryland  1,037 30 161 32 Virginia  999 34 152 40
Massachusetts  1,488 9 194 9 Washington 854 44 163 30
Michigan  942 38 182 18 West Virginia 940 39 188 12
Minnesota  1,348 14 140 48 Wisconsin 779 47 134 49
Mississippi  1,537 7 258 1 Wyoming 1,156 25 147 44
Missouri  1,285 16 173 24 United States $1,211   $180  

(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 and liability 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: © 2019 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, 2017 (1)

 

Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 Louisiana $1,968 1 Oregon $677
2 Florida 1,951 2 Utah 692
3 Texas (2) 1,893 3 Idaho 730
4 Oklahoma 1,885 4 Nevada 755
5 Kansas 1,584 5 Wisconsin 779
6 Rhode Island 1,551 6 Arizona  825
7 Mississippi 1,537 7 Delaware 833
8 Colorado  1,495 8 Washington 854
9 Massachusetts 1,488 9 Ohio 862
10 Nebraska 1,481 10 Maine 882

(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: © 2019 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, 2018

 

State Percent Rank (1) State Percent Rank (1)
Alabama 70.3% 11 Montana 67.4% 24
Alaska 63.7 41 Nebraska 66.4 28
Arizona 65.7 31 Nevada 57.8 48
Arkansas 64.7 38 New Hampshire 73.4 2
California 55.1 49 New Jersey 65.0 36
Colorado 64.4 39 New Mexico 68.0 21
Connecticut 65.3 34 New York 51.0 50
Delaware 70.8 10 North Carolina 65.2 35
D.C. 39.9 51 North Dakota 61.9 44
Florida 65.5 33 Ohio 67.3 25
Georgia 63.8 40 Oklahoma 69.5 17
Hawaii 59.5 47 Oregon 62.0 43
Idaho 69.2 18 Pennsylvania 69.9 12
Illinois 66.0 29 Rhode Island 60.7 46
Indiana 69.8 13 South Carolina 72.0 6
Iowa 68.9 20 South Dakota 69.1 19
Kansas 67.3 25 Tennessee 68.0 21
Kentucky 69.8 13 Texas 62.7 42
Louisiana 65.7 31 Utah 72.2 5
Maine 71.2 8 Vermont 71.4 7
Maryland 66.6 27 Virginia 66.0 29
Massachusetts 61.5 45 Washington 64.9 37
Michigan 73.0 3 West Virginia 74.7 1
Minnesota 69.8 13 Wisconsin 67.9 23
Mississippi 72.5 4 Wyoming 71.1 9
Missouri 69.7 16 United States 64.4%  

(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 2018 West Virginia, Iowa, 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.

 

 
Percent Of Renter Occupied Units Spending 30 Percent Or More Of Their Income On Rent And Utilities, 2017

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 40.8% 39 Montana 40.2% 42
Alaska 42.0 30 Nebraska 36.8 50
Arizona 44.8 17 Nevada 45.5 13
Arkansas 39.5 45 New Hampshire 44.5 20
California 52.5 1 New Jersey 49.0 6
Colorado 49.2 5 New Mexico 43.3 26
Connecticut 48.3 8 New York 49.7 4
Delaware 43.6 25 North Carolina 42.4 29
D.C. 44.9 16 North Dakota 36.6 51
Florida 52.4 2 Ohio 41.1 34
Georgia 44.4 22 Oklahoma 40.5 40
Hawaii 51.7 3 Oregon 48.6 7
Idaho 41.7 31 Pennsylvania 42.5 28
Illinois 45.2 14 Rhode Island 43.0 27
Indiana 41.7 31 South Carolina 44.8 17
Iowa 38.8 46 South Dakota 37.8 49
Kansas 41.0 35 Tennessee 40.9 38
Kentucky 38.4 47 Texas 44.5 20
Louisiana 47.5 9 Utah 41.7 31
Maine 40.4 41 Vermont 46.9 11
Maryland 47.5 9 Virginia 43.7 23
Massachusetts 46.5 12 Washington 45.2 14
Michigan 44.6 19 West Virginia 39.6 44
Minnesota 43.7 23 Wisconsin 41.0 35
Mississippi 40.2 42 Wyoming 38.0 48
Missouri 41.0 35 United States 46.0%  

(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, 46 percent of renters spent at least 30 percent of their household income on rent and utilities in 2017.
  • In 2017 North Dakota, Nebraska, South Dakota, Wyoming and Kentucky had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. California, Florida, Hawaii, New York and Colorado had the highest percentage.

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