How much is renters insurance for $100,000 in liability coverage?

How much is renters insurance for $100,000 in liability coverage?

As with all types of insurance, the details of your policy will impact on your costs. For renters insurance, your location is an especially important detail that insurance companies consider. Your deductible and coverage level can also significantly impact your costs. 

For a renter seeking a policy with $40,000 in property protection and $100,000 in liability insurance with a $500 deductible, the average monthly cost is $22. 

The table below outlines what you can expect to pay based on the amount of personal property on the policy and the deductible, all with $100,000 in liability coverage. 

How much does renters insurance with $100,000 in liability cost in each state?

As with most types of insurance, your location is a key factor in determining your renters insurance rates. 

The table below includes different rates for each state, each with $40,000 in personal property protection and a $1,000 deductible. 

Most expensive states for $100,000 in liability coverage

Rhode Island and Louisiana residents pay the most for renters insurance, at an average cost of $39 per month. Here are the five most expensive states for renters insurance:

• Rhode Island
• Louisiana
• Arkansas
• Michigan
• North Carolina

Least expensive states for $100,000 in liability coverage

Wyoming residents pay the least for renters insurance coverage, at an average cost of $10 per month. Here are the five least expensive states for renters insurance:

• Wyoming
• New Hampshire
• North Dakota
• Idaho
• Delaware

Renters insurance cost for $100,000 in liability coverage by company

Every insurance company has a slightly different method of determining rates, which leads to different costs from company to company. In general, renters find the cheapest insurance option with State Farm. USAA offers cheaper rates to those who are eligible. Since every situation is unique, it’s a good idea to shop around. 

The table below highlights how much you can expect to pay for a renters insurance policy with $40,000 in property protection, $100,000 in liability coverage, and a $1,000 deductible at top renters insurance companies. 

*USAA only provides coverage to military members, veterans and their families.

Renters insurance cost for $100,000 liability coverage by deductible

Higher deductibles lead to a lower premium in most cases. That trend holds true with renters insurance, but the difference is often minimal.

On average, renters who opt for a $500 deductible pay $22 per month. But renters who opt for a $1,000 deductible pay an average of $20 per month. 

The table below breaks down the average cost by deductible for a renters insurance policy with $40,000 in property protection and $100,000 in liability coverage. 

Renters insurance cost for $100,000 in liability coverage for your credit profile

When insurance companies factor in credit profiles, renters with higher credit scores get lower rates. On the other end of the scale, renters with a poor credit history pay more for insurance. 

For example, renters with excellent credit histories pay an average of $16 per month for insurance, while renters with a poor credit history pay an average of $61 per month for coverage. 

The table below illustrates how renters with different credit histories see different rates for a renters insurance policy with $40,000 in property protection, $100,000 in liability coverage and a $1,000 deductible.

What does $100k in renters liability insurance cover?

If you have $100,000 in liability coverage on your renters insurance policy, that is the limit of what your policy will pay for any liability claim against you.

So, if you are sued and there is a judgment against you for $250,000, your insurance policy will pay $100,000. However, certain costs are not part of the liability limit, including costs to defend you in court.

Liability insurance covers you for:

• Injuries to others for which you are responsible.
• Damage to the property of others for which you are responsible.
• Injuries or property damage caused to others by a child or pet.
• Injuries or property damage to others anywhere in the world.

It's important to note that the liability coverage on a renters insurance policy doesn't apply to any injuries or damage caused by a motor vehicle accident.

How much renters insurance do you need?

You need enough renters insurance to cover all of your personal property. How much coverage that is will be based on the value of your personal belongings. That includes everything from your TV to the dishes in your kitchen.

To determine how much coverage you need, take an inventory of all of your personal belongings and add up their value if you had to replace them today, not what you paid for them. To ensure your renters insurance protects you for the replacement cost of your property, add a replacement cost endorsement to your policy.

Additionally, you need enough liability protection to cover your assets.

Why do landlords require $100k in liability insurance?

Landlords require a certain amount of liability coverage on a renters insurance policy to protect them from being held responsible for your negligence.

It's important to note that landlords also carry their own liability insurance, and if the negligence is on their part, caused by something for which they are responsible, that would fall on their policy.

Methodology

Insurance.com commissioned renters insurance rates in 2023 from Quadrant Data Services. Rates were fielded in all ZIP codes with personal property coverage of $20,000, $40,000, and $60,000, liability at $100,000, and deductibles of either $500 or $1,000.

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