Homeowners insurance vs. renters insurance statistics 2022

The U.S. homeownership rate is around 66% as of November 2022, according to the U.S. Census Bureau. [1] Owning a home has its advantages, it’s a long-term investment that helps you build equity, it can give you a form of stability, and can at times result in tax benefits. But how does renting compare to homeownership in the U.S.? We broke down the facts, figures, and statistics surrounding renting vs. homeownership across the country.

Renters vs. homeowners: By the numbers

• 70% of Americans believe that it’s harder for young adults to buy a home than previous generations [2]

• 46% of Americans spent 30% or more of their income on rent in 2020 [3]

• $1,334 was the median asking price for rent for vacant, for-rent units as of the third quarter of 2022 [4]

• $301,700 was the median asking sales price for vacant, for-sale units as of the third quarter of 2022 [5]

• 47% of renters are under 30 years old [6]

• 33% of owner-occupied households are under 30 years old, and 28% are between 45 to 64 years old [7]

• $1,899 is the average cost of homeowners insurance per year 

• $180 is the averagecost of renters insurance per year

• 93% of homeowners have a homeowners insurance policy as of 2020 [8]

• 57% of renters had a renters insurance policy as of 2020 [9]

Homeowners insurance vs. renters insurance

Below are the differences between home and renters insurance.

	Homeowners insurance	Renters insurance
Who needs it …	Homeowners	Renters
What it covers …	Dwelling, other structures, personal property, liability, medical payments, and loss of use	Personal property, liability, and loss of use
What it costs …	$1,899 per year on average	$180 per year on average
Discounts available?	Yes	Yes
When it’s required …	You have a mortgage on the home	Varies by landlord
How it’s paid …	Premiums paid monthly, quarterly, or annually	Premiums paid monthly, quarterly, or annually
Includes a deductible?	Yes	Yes
	Learn more about homeowners insurance	Learn more about renters insurance

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Homeowners vs. renters insurance: What coverages are included?

When you rent a house or apartment, the dwelling and other structures coverage of the home is your landlord’s problem and is covered by their landlord or rental property insurance policy. That's why your renters policy doesn’t cover this. 

Keep in mind that the landlord’s policy does not cover your belongings, so if you want to ensure your property is covered, you’ll want to take out a renters insurance policy yourself. Some landlord policies include medical payments coverage if a tenant’s guest is injured while at the property, but this isn’t always the case.

Renters insurance vs. homeowners insurance: What perils are covered?

Below are the types of damage, or perils, that are covered by home and renters insurance.

Renters insurance perils covered

With a renters insurance policy, your belongings are covered against 16 named perils: 

• Fire and lightning

• Windstorm and hail

• Explosions

• Riots

• Damage by aircraft

• Damage by vehicle (not your own)

• Smoke damage

• Vandalism

• Theft

• Volcanic eruption

• Falling objects

• Weight of snow, ice, and sleet

• Damage from steam- and water-heating appliances and systems

• Leakage or overflow of water or steam

• Freezing of plumbing, heating, and air conditioning

• Short-circuit damage caused by electrical appliances

Homeowners insurance perils covered

Homeowners insurance policies are all-risk policies, meaning your home and property are covered for the above 16 named perils, as well as anything not explicitly excluded in your policy. 

Common home insurance exclusions include:

• Flood damage

• Earthquake damage

• Sump pump or drainage backups

• Maintenance issues

• Pest infestations 

Homeowners vs. renters insurance: What does it cost?

Homeowners insurance is more expensive than renters insurance because it includes coverage for both the structure of the house, as well as the contents inside. Here's how it breaks down for each.

What determines the price of home and renters insurance?

Insurance companies look at the following factors when determining the price of your renters or homeowners insurance premiums: 

• Proximity to natural disaster risk zones

• Crime rate where you live

• Credit score

• Claims history

• Deductible amount 

• Value of personal property

• Discounts you qualify for

Homeowners vs. renters insurance: Are discounts available?

Insurance companies offer discounts for both homeowners and renters insurance. A few of the most popular discounts available include:

• Safety discounts for installing a security system, deadbolt locks, and more

• Bundling discounts for bundling your renters or home policy with your auto policy

• Loyalty discounts for being insured with the same company for so many years

• Paid-in-full discounts for paying your premiums in full for the year instead of monthly

Another way to lower your premiums is to raise your deductible — this is the amount you have to pay out of pocket before your insurance company pays out your claim. Deductibles for both home and renters insurance typically range from $500 to $2,000. The higher your deductible, the cheaper your premiums will be. 

Re-shopping your insurance every year is a good way to save on your premiums, too. It’s a good idea to shop around annually because another insurer may offer you the same coverage at lower rates. You can re-shop your home and renters insurance and compare companies with one of our Policygenius experts.

Homeowners vs. renters insurance: When is it required?

Neither are required by law, though you might still need to get homeowners or renters insurance depending on the below.