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Last Updated December 2025
- Renters insurance is generally more affordable than homeowners insurance, averaging about $15 a month or $185 a year in 2022, while homeowners insurance at the same time averaged $1,569 a year, according to the most recent data from the National Association of Insurance Commissioners (NAIC)1.
- Renters insurance covers personal property, liability, and additional living expenses. But it does not cover the structure of the building.
- Homeowners insurance typically includes coverage for the building and other structures on the property, like sheds and garages, plus it provides broader liability coverage.
Understanding the key differences between renters insurance and homeowners insurance can help you make informed decisions about protecting your home, your personal property and your financial well-being.
Comparing costs: Renters insurance vs. homeowners insurance
Renters insurance tends to be more affordable, while homeowners insurance typically costs more because of its broader coverage. Here’s how it works:
What factors go into renters insurance costs?
Renters insurance costs generally are lower than homeowners because renters insurance doesn’t cover the building (think: roof, walls, floors) — structural features typically covered by a landlord’s insurance. Renters insurance can provide coverage for the things you own and for your personal liability. Renters insurance in 2022 averaged about $15 a month nationally, or $185 a year, according to recent data from the NAIC. But your costs may vary based on:
- The total value of your personal belongings
- Where you live
- The amount of coverage and the deductible you choose
- Optional coverage for valuable items like jewelry or electronics
What factors go into the cost of homeowners insurance?
A big factor driving the cost of homeowners insurance is that it includes coverage for your home itself, everything from the roof on down to the foundation, plus other structures like sheds, garages and fences on your property.
Factors that can impact homeowners insurance rates include:
- The age, size and condition of the home
- Construction materials used and construction costs in your area
- Location, including proximity to fire departments or risks like flood zones
- Your claims history
- Coverage levels and deductibles that you choose
Homeowners insurance cost comparison at a glance
Costs vary by state, by insurer and by the coverage limits and deductibles you choose.
National average
National average
$1,569
Lowest premiums
Lowest premiums
$893
Oregon
Highest premiums
Highest premiums
$2,677 Florida
Source: NAIC1
All States — Home Insurance Premiums (2022)
| State | 2022 Avg. Premium |
|---|---|
|
National average |
$1,569 |
|
Alabama |
$1,748 |
|
Alaska |
$1,129 |
|
Arizona |
$1,018 |
|
Arkansas |
$1,740 |
|
California |
$1,492 |
|
Colorado |
$2,079 |
|
Connecticut |
$1,814 |
|
Delaware |
$1,103 |
|
Florida |
$2,677 |
|
Georgia |
$1,655 |
|
Hawaii |
$1,431 |
|
Idaho |
$1,002 |
|
Illinois |
$1,343 |
|
Indiana |
$1,191 |
|
Iowa |
$1,268 |
|
Kansas |
$1,583 |
|
Kentucky |
$1,359 |
|
Louisiana |
$2,603 |
|
Maine |
$1,077 |
|
Maryland |
$1,392 |
|
Massachusetts |
$1,871 |
|
Michigan |
$1,056 |
|
Minnesota |
$1,774 |
|
Mississippi |
$1,907 |
|
Missouri |
$1,668 |
|
Montana |
$1,639 |
|
Nebraska |
$1,869 |
|
Nevada |
$948 |
|
New Hampshire |
$1,188 |
|
New Jersey |
$1,417 |
|
New Mexico |
$1,322 |
|
New York |
$1,628 |
|
North Carolina |
$1,621 |
|
North Dakota |
$1,325 |
|
Ohio |
$995 |
|
Oklahoma |
$2,268 |
|
Oregon |
$893 |
|
Pennsylvania |
$1,120 |
|
Rhode Island |
$2,074 |
|
South Carolina |
$1,571 |
|
South Dakota |
$1,756 |
|
Tennessee |
$1,492 |
|
Texas |
$2,397 |
|
Utah |
$937 |
|
Vermont |
$1,109 |
|
Virginia |
$1,332 |
|
Washington |
$1,151 |
|
West Virginia |
$1,113 |
|
Wisconsin |
$957 |
|
Wyoming |
$1,596 |
Source: NAIC1
Understanding the coverage differences
What renters insurance typically includes
- Personal property coverage. If a renter’s belongings are stolen or damaged in a covered event like a fire, this can help pay to repair or replace them.
- Liability coverage. If a renter were responsible for someone else’s injury or damage to their property, this can help cover legal costs and medical expenses.
- Additional living expenses. If a renter has to move to a hotel or short-term rental because of damage from a covered event, this can help cover added costs.
Key coverages typically included in homeowners insurance
- Dwelling coverage. If the home itself is damaged in an event covered by the policy, like fire, wind or hail, this can help pay to make repairs or rebuild.
- Other structures coverage. This can help with costs if detached structures like fences or garages are damaged in a covered event.
- Liability coverage. This can help protect finances if a homeowner insured were responsible for someone else’s injury or damage to their property. It can help cover medical expenses and legal costs, including settlements.
- Loss of use coverage. This is similar to additional living expenses for renters but may offer broader coverage and limits, depending on your policy.
Do renters and homeowners insurance cover liability in the same way?
| Compare | Renters Insurance | Homeowners Insurance |
|---|---|---|
| Who’s covered and how | You (the tenant) and relatives who live with you for accidental injuries or property damage you cause to others | You (the homeowner) and relatives who live with you for accidental injuries or property damage you cause to others |
| Where coverage applies | Inside your rented living space, but not elsewhere in or outside your building. Also, anywhere (except in your car) that you cause accidental harm to another | On your entire property (home, yard, driveway), and incidents anywhere, if you are legally responsible (except those involving your car) |
| What it helps pay for | Medical bills, legal fees and repair costs if you’re found responsible for accidental injury or property damage | Similar costs, but also damage or injuries linked to the structure or land you own |
| Examples of what can be covered |
|
|
| Amount of coverage | Limit typically starts around $100,000, with higher options available | Limit often starts around $300,000 and can be increased |
| Who covers shared or exterior areas | Usually your landlord’s policy | You, through your homeowners policy |
| How to increase protection | Raise your liability limit or add umbrella insurance | Raise your liability limit or add umbrella insurance |
Who should consider each type of insurance?
When renters insurance is a good fit
- You rent an apartment, condo or house.
- Your landlord’s policy doesn’t cover your personal belongings.
- You want to cover your personal liability or temporary living expenses following a covered loss.
When homeowners insurance is a good option — or necessary
- You own your home — most mortgage lenders require it.
- You own your home outright but don’t want to shoulder the full cost of repairs or rebuilding and replacing your belongings after a covered event.
- You need liability protection to cover your assets in case damage or injuries occur on your property or you’re responsible for them.
Common misconceptions about renters insurance
- Many people think their landlord’s policy covers their stuff but it usually doesn’t, unless the landlord is responsible for the loss. Landlord policies typically only cover the building itself and its exterior spaces.
- People may wonder whether renters insurance is worth the cost. Even if you don’t own much, the cost to replace electronics, clothing and furniture can add up fast if they’re stolen or damaged in a covered event. And renters insurance, at a national average of $15 a month1 in 2022, is considered affordable.
How to choose the right insurance for your situation
Evaluate your needs
Whether you’re a renter or a homeowner, here are factors to consider when looking at the kind of coverage you want, and how much.
- What do you own? Estimate the value of your personal property with a home inventory.
- Do you have valuable items? Consider adding extra personal property coverage for high-value items.
- How much liability coverage do you want? Think about how a lawsuit or the medical bills of those you injure could affect you financially if you have to cover the damages or a court settlement. Add up your assets, including property you own, savings and investments to guide you. Also, consider the risks you face — for example, do you invite guests to your swimming pool?
Know the details of your lease or mortgage
Landlords may require renters insurance as part of your lease agreement. Mortgage lenders typically require homeowners insurance until the loan is paid off.
Think long term
Your insurance needs may change. If you’re renting now but plan to buy a home, it’s helpful to understand both types of policies so you can make informed decisions down the line.
How Farmers® can help
Whether you rent or own, Farmers offers customizable insurance policies that can help you protect your financial interests.
1SOURCE: National Association of Insurance Commissioners “Dwelling Fire, Homeowners, Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2022,” published in
All renters figures based on the HO-4 renters insurance policy for tenants, which includes broad named-peril coverage for the personal property of tenants. Includes state funds, residual markets and some wind pools.
All homeowners figures based on the HO-3 homeowners package policy for owner-occupied dwellings, 1 to 4 family units, which provides all risks coverage (except risks specifically excluded) on buildings and broad named-peril coverage on personal property. Includes state funds, residual markets and some wind pools.
In the event of a conflict between this information and the policy, policy language prevails.
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.
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