Facts + Statistics: Renters insurance

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, 2009-2018

 

Year Homeowners (1) Percent change Renters (2) Percent change
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
2018 1,249 3.1 179 -0.6

(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: © 2020 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 slightly in the first quarter of 2021 to 65.6 from 65.8 in the fourth 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, 2018 (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 $1,409 13 $222 5 Montana $1,237 22 $147 45
Alaska 984 36 175 22 Nebraska 1,569 9 149 42
Arizona  843 46 175 22 Nevada 776 48 182 18
Arkansas  1,419 12 211 7 New Hampshire 984 36 148 44
California (5) 1,073 31 178 21 New Jersey 1,209 24 160 32
Colorado  1,616 7 164 29 New Mexico 1,075 30 186 13
Connecticut  1,494 11 188 12 New York 1,321 16 189 10
Delaware 873 45 157 35 North Carolina 1,103 28 158 34
D.C. 1,264 21 157 35 North Dakota 1,293 18 126 51
Florida  1,960 2 185 14 Ohio 874 44 169 26
Georgia  1,313 17 214 6 Oklahoma 1,944 4 236 2
Hawaii  1,140 27 181 19 Oregon 706 51 161 30
Idaho  772 49 152 40 Pennsylvania 943 40 157 35
Illinois  1,103 28 166 27 Rhode Island 1,630 5 185 14
Indiana  1,030 33 172 24 South Carolina 1,284 19 184 17
Iowa  987 35 144 47 South Dakota 1,280 20 127 50
Kansas  1,617 6 172 24 Tennessee 1,232 23 195 8
Kentucky  1,152 26 166 27 Texas (6) 1,955 3 225 4
Louisiana  1,987 1 234 3 Utah 730 50 155 38
Maine  905 42 149 42 Vermont 935 41 153 39
Maryland  1,071 32 161 30 Virginia  1,026 34 152 40
Massachusetts  1,543 10 191 9 Washington 881 43 160 32
Michigan  981 38 185 14 West Virginia 970 39 189 10
Minnesota  1,400 14 140 49 Wisconsin 814 47 143 48
Mississippi  1,578 8 252 1 Wyoming 1,187 25 146 46
Missouri  1,383 15 179 20 United States $1,249   $179  

(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: © 2020 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, 2018 (1)

 

Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 Louisiana $1,987 1 Oregon $706
2 Florida 1,960 2 Utah 730
3 Texas (2) 1,955 3 Idaho 772
4 Oklahoma 1,944 4 Nevada 776
5 Rhode Island 1,630 5 Wisconsin 814
6 Kansas 1,617 6 Arizona  843
7 Colorado  1,616 7 Delaware 873
8 Mississippi 1,578 8 Ohio 874
9 Nebraska 1,569 9 Washington 881
10 Massachusetts 1,543 10 Maine 905

(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: © 2020 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, 2019

 

State Percent Rank (1) State Percent Rank (1)
Alabama 68.8% 15 Montana 68.9% 14
Alaska 64.7 38 Nebraska 66.3 27
Arizona 65.3 35 Nevada 56.6 48
Arkansas 65.5 33 New Hampshire 71.0 7
California 54.9 49 New Jersey 63.3 40
Colorado 65.9 32 New Mexico 68.1 17
Connecticut 65.0 37 New York 53.5 50
Delaware 70.3 11 North Carolina 65.3 35
District of Columbia 41.5 51 North Dakota 61.3 46
Florida 66.2 28 Ohio 66.0 30
Georgia 64.1 39 Oklahoma 65.5 33
Hawaii 60.2 47 Oregon 62.9 42
Idaho 71.6 5 Pennsylvania 68.4 16
Illinois 66.0 30 Rhode Island 61.7 45
Indiana 69.3 13 South Carolina 70.3 11
Iowa 70.5 10 South Dakota 67.8 18
Kansas 66.5 24 Tennessee 66.5 24
Kentucky 67.0 22 Texas 61.9 44
Louisiana 66.5 24 Utah 70.6 9
Maine 72.2 2 Vermont 70.9 8
Maryland 66.8 23 Virginia 66.1 29
Massachusetts 62.2 43 Washington 63.1 41
Michigan 71.6 5 West Virginia 73.4 1
Minnesota 71.9 3 Wisconsin 67.2 20
Mississippi 67.3 19 Wyoming 71.9 3
Missouri 67.1 21 United States 64.1%  

(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 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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