Homeowners insurance vs. renters insurance statistics 2022

What percentage of Americans own homes? We broke down the statistics to see how homeownership compares to renting in the U.S. in 2022.

Kara McGinley

By

Kara McGinley

Kara McGinley

Senior Editor & Licensed Home Insurance Expert

Kara McGinley is a senior editor and licensed home insurance expert at Policygenius, where she writes about homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

Edited byJennifer Gimbel

Jennifer Gimbel

Senior Managing Editor & Home Insurance Expert

Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Updated|2 min read

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

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.

Compare rates and shop affordable home insurance today

We don't sell your information to third parties.

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

Homeowners vs. renters insurance: What coverages are included?

Home

Homeowners insurance

Homeowners insurance includes six main types of coverages:

  • Dwelling: Pays to rebuild your entire house from the ground up after a covered loss.

  • Other structures: Pays to rebuild other structures on your property like fences, sheds, or detached garages after a covered loss. 

  • Personal property: Pays to repair or replace your personal belongings after a covered loss.

  • Liability: Pays for medical and legal bills if someone is injured or their property is damaged while at your home and you’re found legally responsible.

  • Medical payments: Pays for smaller medical payments for your guests if they’re injured at your home — regardless of who is at fault.

  • Loss of use: Pays for hotel stays, dining out, transportation costs, and more if you need to live elsewhere after a covered loss to your home.

Renters

Renters insurance

Renters insurance includes three main types of coverages:

  • Personal property: Pays to repair or replace your personal belongings after a covered loss.

  • Liability coverage: Pays for medical and legal bills if someone is injured or their property is damaged while at your home or apartment and you’re found legally responsible.

  • Loss of use: Pays for hotel stays, dining out, transportation costs, and more if you need to live elsewhere after a covered loss to your home or apartment.

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.

Compare rates and shop affordable home insurance today

We don't sell your information to third parties.

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:

Does home and renters insurance cover belongings stolen or damaged outside my home or apartment?

Yes, both home and renters insurance protect your property if it’s stolen, either from your home or off your property

For example, if someone breaks into your car and steals your laptop, your renters insurance or homeowners insurance policy would come into play for the stolen laptop (the broken windows would still fall to your car insurance company, though).

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.

Home

Homeowners insurance

Homeowners insurance costs an average of $1,899 per year or $158 per month, according to our analysis of 2022 home insurance rate data from across the country.

Homeowners insurance is more expensive than renters insurance because a home policy has dwelling coverage at its core. It’s a good idea for homeowners to have enough dwelling coverage to cover the cost to rebuild their entire home. 

That means if you live in a house that has a replacement cost of $300,000, you should have $300,000 worth of dwelling coverage. This is on top of the coverage you’d add to your policy to rebuild other structures on your property and pay for damage to your belongings and liability protection.

Renters

Renters insurance

Renters insurance costs an average of $180 per year or just $15 per month, according to 2017 data analyzed by the National Association of Insurance Commissioners (NAIC).

A standard renters policy typically contains around $30,000 in personal property coverage and $100,000 in liability coverage, making it a great value.

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: 

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:

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.

Home

Homeowners insurance

Homeowners insurance isn’t required by law, though most lenders require you to take out a homeowners insurance policy when you apply for a mortgage. This is because the lender has a financial interest in the home until the loan is completely paid off, so they want to ensure it’s fully protected against risks. The amount of home insurance coverage you’re required to take out varies by lender.

Renters

Renters insurance

Renters insurance isn’t required by law, though some landlords might require you to have renters insurance as a stipulation of your lease.

Compare rates and shop affordable home insurance today

We don't sell your information to third parties.

References

dropdown arrow

Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. U.S. Census Bureau

    . "

    Quarterly Residential Vacancies, Homeownership, Third Quarter 2022

    ." Accessed November 11, 2022.

  2. Pew Research Center

    . "

    Key facts about housing affordability in the U.S.

    ." Accessed November 11, 2022.

  3. National Multifamily Housing Council

    . "

    Renters and Owners

    ." Accessed November 11, 2022.

  4. Insurance Information Institute

    . "

    Insured homes by state

    ." Accessed November 11, 2022.

Author

Senior Editor & Licensed Home Insurance Expert

Kara McGinley

Senior Editor & Licensed Home Insurance Expert

gray linkedin icon link

Kara McGinley is a senior editor and licensed home insurance expert at Policygenius, where she writes about homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

Editor

Senior Managing Editor & Home Insurance Expert

Jennifer Gimbel

Senior Managing Editor & Home Insurance Expert

gray linkedin icon link

Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Questions about this page? Email us at .