By 2025, the renters insurance penetration rate will surpass 60%, up for 53% in 2022, and around $700 million in premium will be generated by new policies during that time frame, according to researcher firm Emarketer, Inc. The renters insurance market was worth around $4.5 billion in 2023, according to IBISWorld. The market researcher noted that insurers should focus on renters insurance products that are designed for policyholders with incomes of $150,000 or more annually, a segment that has been increasingly renting in recent years. This demographic is also more likely to purchase insurance, while landlords offering higher-end dwellings tend to mandate renters insurance. According to MarketWatch, Inc., the types of renters insurance coverages include:

• Replacement cost coverage: These coverages are more expensive but offers more protection as they pays for lost or damaged belongings at their current market value without factoring in depreciation.
• Actual cash value coverage: This type of coverage factors in depreciation, potentially resulting in lower claim payouts, but it is generally less expensive and suitable for those prioritizing affordability.
• Additional coverage: Opting for additional coverage, such as identity theft protection and extra liability insurance, will increase your monthly premium payments.

The above slideshow reviews some of the types of common claims renters insurance covers, according to Lemonade, Inc. Related:

• States with the highest renters insurance rates
• 3 reasons young adults in college need property insurance
• Renting still less expensive than owning in nearly all of U.S.