Southern Inhospitality: 9 of the 10 Most Expensive Cities for Renters Insurance are in the South | Insurify – Insurance News

The average U.S. tenant pays $264 annually for renters insurance, according to Insurify data. But costs climb much higher in certain areas, especially the South.

Five cities along the Gulf Coast rank among the 10 most expensive cities for renters insurance: New Orleans, Baton Rouge, and Lafayette in Louisiana, and Biloxi and Gulfport in Mississippi. Cities in Kentucky, Georgia, and Arkansas also make the list.

In fact, Detroit, the most expensive city for renters insurance, is the only one among the top 10 that isn’t in the South.

Several factors influence renters insurance costs, and they vary significantly between states and cities. Building and security features, neighborhood property crime rates, area fire incident rates and response times, and individual policy details can all affect renters insurance rates.

Climate risks have made it unprofitable for companies to insure certain regions, according to J.P. Morgan.1 Severe weather, such as hurricanes and wildfires, can lead to expensive claims, driving broader insurance losses that ultimately result in rate hikes.

Key findings

Detroit, Michigan, is the most expensive city for renters insurance, and it’s the only city in the top 10 that isn’t located in the South. Detroit renters pay an annual average of $948 for insurance — more than triple the national average.New York is among the least expensive states for renters insurance, with an annual average rate of just $216. Manhattan renters pay a little more, at $264 per year, but Syracuse renters pay the second-lowest average rates among cities, at $168 per year.Six of the 10 most expensive cities for renters insurance are in Louisiana and Mississippi.Delaware is the least expensive state for renters insurance, with an annual average rate of $180. But Rapid City, South Dakota, is the least expensive city in the country, where renters pay just $156 per year on average.Renters insurance costs have risen significantly in the last two years, according to the Consumer Price Index. The index was 169.9 in September, up from 150.5 in September 2022.2

Cities in Michigan, Mississippi, and Louisiana top list of most expensive cities for renters insurance

Numerous factors affect costs in the most expensive cities for renters insurance. Severe weather, fire risk, and property crime all contribute to increased costs. Chosen policy features, such as deductibles and coverage limits, can also affect costs.

The cities on this list all face risks that increase the number of claims, ranging from building fires to windstorms. Higher insurer losses in the Gulf States from destructive Atlantic hurricanes may also elevate costs in Mississippi and Louisiana.

A renter’s credit history also comes into play in many areas. The average credit score in the U.S. is 715, according to FICO.3 But the average credit score among the 10 most expensive cities for renters insurance is 670.4

It’s also not renters with a higher income who are paying more expensive renters insurance premiums: The average household income in the most expensive cities is $69,994, but among the cheapest cities, it’s $85,032, according to 2024 U.S Census Bureau data.

These are the top 10 most expensive cities for renters insurance in the U.S., according to Insurify data.

1. Detroit, Michigan

Average annual renters insurance premium: $949Cost compared to national average: 260% higher (+$685)

Detroit has the highest renters insurance costs by a wide margin. The average renter pays more than triple the national average for coverage, Insurify data shows.

Wayne County, which includes Detroit, has a high risk index for vulnerability to climate hazards, according to the Federal Emergency Management Agency (FEMA).5 The area faces high risks of tornadoes, strong winds, winter weather, and lightning storms.

Wayne County also has a relatively high number of fire incidents, at more than six per 1,000 people, according to the Institution of Fire Engineers’ Vision 20/20 Project.6 Many areas of Detroit have more than double the number of incidents. Locally and statewide, building fires are the most common incident type.

Since renters policies insure the contents of someone’s home, crime rates can also contribute to higher premiums. Detroit ranks around the national average for burglary and theft, according to the FBI’s 2024 Crime in the U.S. data.7

But rates can still vary significantly, even down to the neighborhood. Residents in southeast Detroit neighborhoods have a 1-in-31 chance of being a victim of property crime, while those in northeast neighborhoods have a 1-in-94 chance, according to Crime Grade.8

While the average credit score in Detroit is 621, which is significantly lower than the national average, Michigan prohibits insurance companies from using credit history in setting rates.

2. Jackson, Mississippi

Average annual renters insurance premium: $519Cost compared to national average: 97% higher (+$255)

Renters in Jackson pay almost twice the national average for insurance, according to Insurify data. Like Detroit, Jackson also faces several severe weather risks. Hinds County has a high risk index for hail, lightning storms, strong winds, tornadoes, and winter weather. Weather hazards like these can increase the frequency of claims and overall insurer losses, which in turn affect premiums.

The average credit score in Jackson is 642, which may also contribute to higher premiums. Jackson also has moderate burglary and theft rates, according to FBI data. The city is safer than 58% of cities, according to Crime Grade. A resident’s chance of being a victim of property crime varies significantly by neighborhood, however, which could also affect renters insurance costs.

Downtown Jackson has a moderate fire risk, at around six incidents per 1,000 people, but trash fires are more common than building fires.

3. Biloxi, Mississippi

Average annual renters insurance premium: $489Cost compared to national average: 85% higher (+$225)

Renters in Biloxi, a city along Mississippi’s Gulf Coast, also face higher insurance costs. Its home county has high risk scores for multiple climate hazards, including hurricanes, tornadoes, and lightning storms, according to FEMA.

The number and type of fire incidents in Biloxi vary widely by neighborhood. Building and cooking fires are the top reported fire type in the city’s north and northeast neighborhoods, where there are around three to six incidents per 1,000 people.

Property crime rates in Biloxi are relatively moderate but vary by neighborhood, with higher rates in the southeast and lower rates in the west. Overall, Biloxi is safer than 80% of U.S. cities, according to Crime Grade. Lower credit scores may also contribute to higher costs: The average credit score in Biloxi is 679, which is below the national average.

4. New Orleans, Louisiana

Average annual renters insurance premium: $487Cost compared to national average: 86% higher (+$223)

New Orleans, another city on the Gulf Coast, faces climate hazards that contribute to higher premiums. Orleans Parish has a high risk index for hurricanes and lightning storms, according to FEMA. Severe storms often lead to extremely costly insurer losses. Between 2019 and 2024, hurricanes caused more than $146 billion in damage across Louisiana, according to the National Centers for Environmental Information.9

Elevated property crime rates in New Orleans likely also contribute to higher renters insurance rates. When it comes to property crime like burglary and theft, New Orleans is less safe than 91% of cities, according to Crime Grade. While rates do vary by neighborhood, they’re high across the board in New Orleans, ranging from a 1-in-26 chance of being a victim of property crime to a slightly lower 1-in-40 chance.

The average credit score in New Orleans is also 670, well below the national average. The fire incident rate is relatively low citywide.

5. Gulfport, Mississippi

Average annual renters insurance premium: $486Cost compared to national average: 84% higher (+$222)

Gulfport is another city along Mississippi’s coast, just east of Biloxi, where renters see high insurance costs. It’s also in Harrison County, which faces climate risks such as tornadoes, lightning storms, and hurricanes.

Gulfport has higher property crime rates and lower average credit scores than Biloxi. Gulfport is safer than just 66% of U.S. cities, according to Crime Grade, compared to Biloxi’s 80%.

But property crime rates vary significantly by neighborhood: A resident has a 1-in-40 chance of being a victim of property crime in the central neighborhoods, while someone in the northwest area has a much lower 1-in-322 chance. The average credit score in Gulfport is 665, 50 points lower than the national average.

Gulfport also faces more significant fire risk than Biloxi, with a rate of more than six fires per 1,000 people downtown, according to Vision 20/20. Building fires are the most common type of fire in several areas of the city.

6. Louisville, Kentucky

Average annual renters insurance premium: $458Cost compared to national average: 74% higher (+$194)

Local climate hazards are likely a main factor influencing renters insurance costs in Louisville. Jefferson County faces several severe weather risks from tornadoes, strong winds, lightning storms, and ice storms, according to FEMA. Most renters insurance policies cover damage from these events, so higher risks can mean more claims and higher costs for insurers.

Building fires can also drive up renters insurance costs. Several areas of downtown Louisville have a fire incident rate of six to 12 fires per 1,000 people, and building fires are the most common type.

The property crime rate in Louisville is slightly higher than in the average U.S. city, according to Crime Grade. Neighborhoods in the western part of the city have the highest rates, where residents have a 1-in-39 chance of being a victim of property crime. The citywide average credit score is 690, below the national average but higher than in other cities in the top 10.

7. Atlanta, Georgia

Average annual renters insurance premium: $443Cost compared to national average: 68% higher (+$179)

Renters in Atlanta pay elevated costs for renters insurance, on average, due to a combination of factors. The city has a slightly higher-than-average property crime rate, according to Crime Grade, which could contribute to higher premiums. Renters insurance costs can vary down to the ZIP code, even before individual factors affect rates, because neighborhoods can have different risks of crime, fire, and weather damage.

Most of Atlanta has a relatively low fire incident rate, but some areas have a rate higher than six per 1,000 people, according to Vision 20/20. Fulton County, home to Atlanta, also faces several weather hazards. The county has a high risk of hail, lightning storms, and tornadoes, according to FEMA.

Below-average credit scores may also lead to higher renters insurance costs: The average credit score in Atlanta is 682.

8. Lafayette, Louisiana

Average annual renters insurance premium: $431Cost compared to national average: 64% higher (+$167)

Renters in Lafayette face higher insurance premiums for several reasons. The property crime rate is significantly higher than the average for U.S. cities, according to Crime Grade. Lafayette is less safe than 88% of cities in terms of property crime, with higher rates in eastern neighborhoods and lower rates in the southwest.

The city’s below-average credit score of 688 may also help explain the higher rates.

Lafayette Parish faces climate hazards such as hurricanes and ice storms, which can increase claims risk and lead to higher renters insurance costs. Parts of the city also have a high fire incident rate: more than 12 fires per 1,000 people in some areas. Building fires, cooking fires, and brush fires are all common types of fires in the city, according to Vision 20/20.

9. Baton Rouge, Louisiana

Average annual renters insurance premium: $425Cost compared to national average: 59% higher (+$156)

In Baton Rouge, especially east of the Mississippi River, higher fire risk and vulnerability to severe weather may increase claims costs and lead to elevated renters insurance premiums. Several neighborhoods in Baton Rouge have a fire incident rate of six to 12 fires per 1,000 people, according to Vision 20/20. Building fires are the leading type of fire in several areas downtown.

East Baton Rouge Parish, which includes most of the city, faces several climate hazards, including hurricanes, ice storms, lightning storms, and tornadoes, according to FEMA. While renters insurance doesn’t cover flood damage, it would cover damage or displacement costs from other severe weather events.

Baton Rouge also has a higher property crime rate than the average U.S. city, according to Crime Grade. It’s less than safe in 81% of cities, with a higher risk of property crime in the west than in the southeast. Credit may also factor into rates, as Baton Rouge has a below-average credit score of 674.

10. Conway, Arkansas

Average annual renters insurance premium: $420Cost compared to national average: 59% higher (+$156)

Renters in Conway may see higher renters insurance costs because of factors shared with other cities on this list. Conway has a higher-than-average property crime rate and is less safe than 76% of U.S. cities, according to Crime Grade. Building fires are also the most common fire type in downtown Conway, where the fire incident rate is around three to six per 1,000 people, according to Vision 20/20.

Weather hazards may also drive up costs. Conway is in Faulkner County, which has a high risk index for ice storms, lightning storms, strong winds, and tornadoes, according to FEMA. Credit may also influence rates, though Conway’s average credit score of 689 is the second-highest among the cities on this list.

The 10 cheapest cities for renters insurance

While crime rates and fire risk still vary, the cheapest cities for renters insurance have higher average credit and lower catastrophe exposure than the most expensive cities. The average credit score among the 10 cheapest cities for renters insurance is 711, much closer to the U.S. average of 715 and 41 points higher than the average among the most expensive cities.

These are the 10 least expensive cities for renters insurance, according to Insurify data.

Most of the cheaper cities for renters insurance are in counties facing fewer or less severe climate hazards.

Casper, Wyoming, and Arlington, Virginia, don’t have any high-risk indices for severe weather, according to FEMA. The most common high-risk climate hazards among these cities are winter weather and ice storms, not the hazards driving high losses, like hurricanes, tornadoes, and wildfires.

Considering the factors altogether can help explain the lower rates. For example, Casper has below-average property crime rates, few climate risks, a moderate fire incident rate, and an average credit score of 705. Arlington has a high crime rate but few climate risks, a low fire incident rate, and a high average credit score of 737.

8 of the 10 most expensive states for renters insurance are in the U.S. South

Zooming out to the state level, renters insurance premiums don’t vary as much. Since renters insurance doesn’t cover the structure of the home, factors like inflation affecting construction costs have a lesser influence on renters premiums than homeowners insurance rates.

As with the cities, the Southern states dominate the top 10 most expensive states for renters insurance, with Michigan and Missouri as the only outliers. Higher property crime and fire incident rates in urban areas with a higher proportion of renters, such as Detroit, St. Louis, and Kansas City, likely drive up costs in those states.

Every state on this list has either a moderate or high fire incident rate, according to Vision 20/20. Mississippi, Arkansas, and Oklahoma have the highest rates, with more than 500 fires per 100,000 people. Many of them also face higher climate-related risks, including hurricanes and tornadoes, which can cause significant insurer losses.

The average credit score across the 10 most expensive states is 699, according to Experian.10 The median household income is $67,552, well below the national average, according to U.S. Census Bureau data, meaning renters in these lower-income states bear a higher insurance burden.

Delaware, South Dakota, and Iowa are least expensive states for renters insurance

Higher credit scores, lower fire incident rates, and less climate risk are common among the cheapest states for renters insurance.

The average credit score among the cheapest states is 728, which is above the U.S. average and nearly 30 points higher than the average score among the most costly states, according to Experian. The average household income is also higher among the 10 least expensive states, at $82,205, according to U.S. Census Bureau data.

Most of these states have lower fire incident rates, according to Vision 20/20. Just one state on this list, Maine, has a fire incident rate of more than 500 fires per 100,000 people. Washington and Nebraska have the lowest rates, with fewer than 250 fires per 100,000 people.

These states also don’t experience as many destructive climate risks affecting urban areas. For example, the hazards with the highest risk index in Delaware are heat waves, ice storms, winter weather, strong winds, and coastal flooding, according to FEMA. Since renters insurance doesn’t cover flood-related damage or displacement costs, higher flooding risk doesn’t affect premiums.

Tips: How to save money on renters insurance

Renters have several strategies available to limit insurance costs.

“Crime, credit history, claims history, and even how much coverage you need can all impact premiums,” said Buddy Parkhurst, a licensed insurance agent with Insurify. “As each of these boxes is checked, you will see higher premiums.”

That means working to maintain a strong credit history, securing against break-ins, and carefully considering coverage amounts and policy features can help tenants save money and avoid paying for coverage they don’t need.

Since personal property coverage is a key component of renters insurance, taking the time to make a thorough home inventory ensures renters know how much coverage to buy. Paying for $50,000 of personal property coverage when renters need only $15,000 is a waste. Still, tenants should have sufficient coverage to replace their possessions in the event of a covered disaster, such as a fire or burglary, according to the Insurance Information Institute (Triple-I).11

Renters insurance, or an HO-4 policy, doesn’t cover everything. Here’s what a renters policy typically covers.

Renters must also choose between actual cash value (ACV) and replacement cost value (RCV) coverage. If a fire damages a renter’s TV, for example, ACV coverage would reimburse them for the depreciated value of the TV. RCV coverage would reimburse them for the cost of replacing the TV with a new one. RCV is the way to go every time, Parkhurst said.

“This will ensure that if you have a claim and need your property replaced, it will not be depreciated,” he said. “This extra endorsement is usually very inexpensive, just a couple of bucks a month.”

Methodology

Insurify data scientists analyzed thousands of proprietary renters insurance quotes from all major national insurance companies to calculate the average cost of renters insurance. Unless otherwise stated, rates represent the monthly cost of a six-month policy for a 30-year-old single male renter with coverage limits of $30,000 for personal property and $300,000 for liability.