Average rental prices are cheaper than average mortgage payments in many major markets these days — and renting comes with lower insurance costs.
According to Triple-I, the average renters insurance policy costs $170 annually, or $14 monthly. The average homeowners insurance policy right now is $2,110 per year, or about $176 per month, according to NerdWallet.
Renters insurance, also known as HO-4 insurance, covers tenants and their belongings in the event of covered damages. It can also provide additional living expenses if a tenant needs to move out for a covered reason, and it can provide liability coverage if someone is injured in the unit.
Like homeowners insurance, renters insurance premiums can vary depending on the size of the property and the location. Renters tend to pay more in weather-prone states, like Mississippi, Alabama, Louisiana and Texas. In Mississippi, for example, renters pay an average of $222 per year for coverage. They pay less in states like Wisconsin and North Dakota, where renters insurance is an average of $114 per year.
That’s still low compared to homeowners insurance in many states. In Oklahoma, the average homeowners policy is $6,210 per year, or about $518 per month.
The slideshow above highlights key 2025 rental trends according to data from Point2Homes.
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