How Much Does Condo Insurance Cost? (2022)

  • Typical range: $267 to $949
  • national average: $539
  • Getting homeowners insurance is one of the most important steps in buying a new home, as it protects against potential damage that could be very expensive to repair. Condo owners may believe their unit is covered by HOA or condo association insurance, but that policy generally does not extend to individual condos or their contents.

    Although some hoas may have insurance that covers the entire building, including all units, condo owners may need to purchase separate insurance to protect their personal property. Condominium insurance, also known as HO6 insurance, is a form of homeowners insurance tailored to the unique needs of a condominium building and its residents. ho6 insurance includes homeowners coverage—insuring the roofs, walls, and floors of a condominium—as well as personal property coverage to insure the owner’s personal belongings. this type of insurance often also includes liability coverage to cover damage caused by condo owners or their pets.

    Reading: What does condo insurance cost

    Condo insurance generally protects against the same types of perils that standard homeowners insurance would cover: fire, smoke, theft, falling branches, and certain types of water damage, to name a few. Many weather-related perils are also covered by HO6 insurance. For example, a condominium insurance provider may pay to repair or replace windows damaged by hail or high winds.

    ho6 insurance can be a worthwhile investment for condo owners, even when it’s not required by the condominium association or mortgage lender. Without this coverage, condo owners could end up paying for costly repairs or replacing damaged personal property or stolen possessions entirely out of pocket. How much does condo insurance cost? The average cost of condo insurance for condo owners is $539 per year, but annual rates can range from $267 to $949.

    factors to calculate the cost of condo insurance

    Insurance premiums may vary based on factors such as coverage limits, deductibles, and add-on policies. The location of the building is also an important consideration, as condo insurance rates often vary, sometimes significantly, from state to state. Everyone’s situation is different, and it’s good to know how each person’s specific circumstances may affect their condo insurance rate.

    residence status

    Condo insurance costs tend to vary based on the location of the residence. Condo owners are likely to find that insurance rates are significantly higher in some states compared to others. In general, condo owners should expect to pay higher premiums in states that face a higher chance of experiencing natural disasters, such as tornadoes or hurricanes. The increased risk of catastrophe, and the resulting costly repair work, may mean that condo owners will pay more to insure their property and possessions in some locations compared to others.

    deductible and coverage amounts

    As with homeowners insurance, condo insurance costs can largely depend on the terms of the policy itself. Prices typically go up as policyholders expand coverage and increase their limits. Deductibles also play an important role in determining the cost of ho6 insurance. Selecting a lower deductible will often result in a higher premium, since the insurance provider would bear a larger portion of the replacement or repair costs. the reverse is also true: higher deductibles often lead to lower monthly premiums for policyholders.

    coverage policies

    Insurance costs rise as customers modify their policies, add new terms, and expand coverage. Policyholders who add an endorsement for earthquake insurance, for example, will likely see their premiums increase to pay for that extra coverage. Certain types of coverage, such as liability and loss of use insurance, may be included in a standard condo insurance policy, but that’s not always the case. condo owners who want to increase their liability coverage could request higher policy limits, resulting in higher monthly premiums. Every change made to a standard condo insurance policy can increase the cost of coverage.

    policy discounts

    Insurance providers often offer discounts that help customers reduce the overall cost of coverage. Some of the more common discounts include bundles in which policyholders bundle several types of insurance, such as home and auto, at a lower rate. Insurance companies may also use discounts to entice policyholders to switch providers or simply reward a new customer for signing up for a policy. Taking advantage of such discounts can reduce condo owners’ monthly insurance premiums and the overall amount they spend on condo insurance.

    age and condition of the building

    Anyone who has moved from a newer home to an older one can probably confirm that their homeowners insurance premiums increased after the sale took place. Older properties cost more to maintain and repair, which can lead to higher insurance costs. That same principle also applies to condominium units. An older building may have outdated wiring or plumbing that is at higher risk of failure, and an insurance company may charge a higher rate to offset that risk. conversely, newer construction or renovated units may be covered at a lower condo insurance rate.

    credit score and credit history

    Insurance companies try to assess risk from as many points of view as possible, and that includes the policyholders themselves. Credit scores reflect a person’s ability to manage debt and stay on top of financial obligations, such as paying insurance premiums consistently. a lower credit score could signal to insurance companies that the policyholder is less likely to keep up with premiums each month, and may increase rates as a result. on the other hand, prospective clients may be offered lower condo insurance rates if they have a strong credit score.

    claim history

    Each reported claim costs insurance companies money, even those that are denied. As such, providers could view clients who have a history of filing insurance claims as more expensive to insure than policyholders who have rarely, if ever, filed a claim. With that in mind, it should come as no surprise that customers who make fewer claims can receive a lower condo insurance rate.

    When it comes to condo insurance, in particular, providers can look at the claims history attached to the property to get a better idea of ​​the unit’s condition and the likelihood of a claim being filed. multiple claims for the same type of hazard, such as fire or theft damage, could indicate that owners have not taken the necessary precautions to prevent these incidents. Under those circumstances, insurance providers may have reason to believe that such events are more likely to reoccur, which may result in higher insurance premiums for the condo owner.

    local crime rates

    City dwellers may find that their condo insurance rates are higher than those of people who live in the suburbs or rural areas. Although there are many factors that inform the cost of condo insurance, crime rates are important to consider. Frequent reports of break-ins and robberies in the area could increase the risk of theft or property damage in the eyes of an insurance company. If providers believe that policyholders who live in certain areas are more likely to file stolen property or broken window claims, they may charge those customers higher condo insurance rates.

    proximity to the nearest fire station

    Fire damage is one of the most expensive hazards an insurance company could be required to pay to repair. Insurance providers will often ask if there are safety devices such as smoke detectors on the premises to assess how risky a unit would be to insure against this hazard. They can even check how close the property is to the nearest fire station to see how quickly firefighters can respond to an emergency. If there is reason to believe that firefighters would be able to put out a fire without delay and minimize the amount of damage to the building or unit, then insurance companies could lower the coverage rate.

    dog ownership and dog breeds

    Condo insurance includes liability coverage that helps pay for legal fees, medical bills, and other damages that the policyholder is responsible for paying. this coverage often extends to the policyholder’s pets as well. Liability coverage can come into play if the policyholder’s dog bites a neighbor or someone else’s pet. In that scenario, liability insurance may pay for medical bills or legal fees incurred by the policyholder. insurance companies often point out certain breeds that are more likely to cause harm due to their size or temperament. Dog owners can expect to pay more for condo insurance overall, but those who own riskier breeds, like Pit Bulls or Rottweilers, can face even higher condo insurance rates and, in some cases, will have claims involving dogs. a dog that is considered more dangerous. race denied entirely.

    home security features

    In addition to safety devices like smoke detectors, the presence of home security features like security systems and cameras can help lower the cost of condo home insurance for policyholders . installing home security devices in a highly visible area could minimize the impact of a break-in, if not deter would-be thieves altogether. An insurance provider may view a condo unit with these characteristics as less risky and offer coverage at a lower rate as a result.

    additional costs and considerations

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    While many condo insurance cost factors will affect most homebuyers, there are some additional considerations that may come into play only in certain situations. these scenarios often involve policy add-ons that increase coverage options but also raise the price of insurance. Because there is so much variability here, there is no one-size-fits-all answer to the question “how much is condo insurance going to cost me?” If homeowners select some or all of these additional terms, they could see rates at the higher end of the cost range for condo insurance.

    additional personal property coverage

    Condo insurance includes policy limits, which determine the maximum amount an insurance company can pay on a claim for damaged or stolen property. Condo owners can generally choose to purchase additional personal property coverage to insure valuables for more than the standard coverage limit. doing so will likely increase the cost of insurance, but may be worth the expense for added peace of mind.

    water damage and backup coverage

    Water damage can be a gray area when it comes to homeowners, condo or renters insurance. Knowing when this risk is covered depends largely on the source of the damage. For example, condo insurance will likely pay to repair a broken pipe or a dishwasher that suddenly malfunctions and leaks all over the floor, as well as any resulting damage to the unit. however, coverage for water damage from a clogged sewer line would require a separate endorsement. Flooding is another water-related hazard that probably wouldn’t be covered by a standard condo insurance policy. Condo owners who live on the first floor or in a garden unit will want to consider getting a separate flood insurance policy to protect against flooding.

    Some types of water damage may be covered by homeowners’ insurance if the source is part of the building’s exterior structure or located in a common area. For example, the association’s insurance provider may pay a claim if the building’s roof leaks and causes water damage to a top-floor unit.

    identity theft protection

    Although identity theft protection is rarely included in a standard condo insurance policy, it may be available as an additional endorsement. This type of coverage can help pay for legal bills, lost income, and other expenses or financial losses resulting from identity fraud. Policyholders can enjoy the extra sense of security that comes with identity theft protection, but adding that protection will likely command a higher condo insurance rate.

    occupancy status

    Condo insurance companies may charge higher premiums to policyholders who are away from their primary residence throughout the year; for example, a salesperson who spends a lot of time on the road. With the house unoccupied for long periods of time, there could be a higher risk of burglary and pickpocketing. In addition, insurance providers may be concerned that there is no one in the home to respond to fires, leaks, and other costly covered perils. this consideration does not apply to vacation properties, second homes or rental properties, all of which require separate policies to insure them.

    types of condo insurance

    While HO6 insurance is the only form of homeowners insurance available to condo owners, it’s also important to consider the type of insurance a condo building may carry. The homeowners association policy can determine how much coverage is needed in a HO6 policy to adequately protect the entire unit and its contents, which will affect the cost of condo insurance. condo owners may even find they don’t need much additional coverage beyond personal property and liability protection because the association’s policy is so comprehensive.

    bare wall coverage

    Bare wall coverage is the most limited coverage a condominium association can carry. This coverage mainly insures the structure of the building as well as the common areas accessible to all residents. individual units, including ceilings, walls, and floors, are not included in bare wall coverage. If a condominium building has bare wall coverage, then each member of the association will need to purchase separate condominium insurance to protect their unit and the belongings in it.

    single entity coverage

    Coverage for a single feature extends to the structural components of each building unit, including walls, ceilings, and floors. You can also insure original appliances and fixtures—refrigerators, bathtubs, washers, etc.—installed in the unit. however, there are limitations to this coverage. in particular, replacement accessories are not covered under single entity policies. If a condominium owner installed a steam shower, for example, the building’s single-entity coverage would not insure it. personal property is also excluded from this type of coverage. Although condo owners would have some amount of homeowners coverage, they would likely have to purchase a separate personal property policy to insure all of their possessions.

    full coverage

    Comprehensive coverage is the most comprehensive insurance policy a condominium building can have. As the name suggests, full coverage insures the entire property, including private units, as well as all fixtures and appliances, regardless of their condition. even then, full coverage does not generally extend to personal possessions, so condo owners would still need to obtain their own policies to protect their valuables in case they are damaged, lost, or stolen.

    Do I need condo insurance?

    Generally speaking, it’s a good idea to get ho6 insurance if you live in a condominium building. Although there may be some cases where condo association insurance covers individual units as well as the building itself, many hoas will opt for a less expensive policy with more limited coverage. At a minimum, condo owners may need to purchase a separate policy to insure their belongings, but they may also want to purchase additional endorsements to increase their coverage. The mortgage company or condominium association may also require condo buyers to obtain a certain amount of coverage.

    mortgage lender requirements

    When financing the purchase of a home, whether it’s a single-family home or a condominium, home buyers generally must obtain some form of home insurance. Mortgage lenders make this provision as a way to protect themselves in case the house is destroyed or damaged beyond repair and needs to be rebuilt. As such, lenders may insist that condo owners purchase enough insurance to cover the cost of completely rebuilding the unit and restoring it to its original condition.

    homeowners association requirements

    Homeowners associations may have their own set of requirements related to condo insurance. A HOA will have insurance to cover the exterior and common areas of the building, but that insurance may not extend to the actual units. As part of their HOA agreement, condo owners may be required to purchase condo insurance even if they have paid for their unit in full without any financing. Depending on the location of the building, the condominium association may require condo owners to purchase additional endorsements, such as earthquake or flood insurance, to protect against perils not normally included in a homeowners policy. In some cases, a hoa board can vote to increase cap requirements, forcing residents to increase their current coverage.

    Benefits of getting condo insurance

    Although condo insurance may not be required by law, it’s generally a good idea for condo owners to protect their homes and valuables, not to mention their finances, with this type of insurance. Beyond the standard coverage that condo insurance offers, condo owners may find that there are many add-ons, endorsements, and policy options that further expand the benefits of having condo insurance.

    additional coverage for personal valuables

    Even if your homeowners association has full coverage, condo owners will likely need a separate policy to insure their personal belongings. Policyholders may also have the option to purchase additional coverage for possessions whose value exceeds current coverage limits. In many cases, condo insurance providers allow clients to tailor their policy to their needs, obtaining all the coverage necessary to fully insure their own unit and its contents.

    personal liability protection

    Many homebuyers focus on home coverage and personal property protection when looking for homeowners or condo insurance, but personal liability protection can be just as valuable. Personal liability policies help cover the costs of damage caused by the policyholder, which can include repair costs, medical bills, and legal fees. Personal liability coverage is a typical component of condo insurance policies, so homebuyers may not need to purchase a separate policy to enjoy the sense of security that this type of coverage provides.

    coverage of additional living expenses

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    Condo insurance typically covers perils like fire or some types of water damage that can significantly damage the unit and require extensive repairs. Condo owners may need to vacate the unit while repair work is completed, and staying in a hotel for several days or weeks can be difficult to budget for. Loss of use coverage can cover those costs if policyholders are unable to reside in their unit for a period of time. Having this type of coverage can further protect condo owners from unexpected expenses resulting from property damage.

    additional coverage for damage to buildings

    Although condo associations carry their own insurance, they can still assess damages to condo owners after a covered event that impacts the building structure. This can happen if the cost of making repairs to the building exceeds the coverage limits contained in the association’s policy. With a standard condo insurance policy, homeowners can pay these costs out of pocket. however, a loss assessment endorsement can help cover such expenses so that policyholders do not have to pay any additional money for building repairs.

    medical payment coverage

    Medical payments coverage included with condo insurance may cover medical bills if a guest or visitor is injured inside the policyholder’s unit. Condominium owners can also increase their coverage limits to help pay more of the costs of treating injured visitors. Expanding medical payments coverage in this way is completely optional, but could give condo owners more peace of mind.

    how to save money on condo insurance

    Certain factors that influence the cost of condo owners insurance cannot be controlled by homeowners: location, building age, and crime rates, for example. however, there are several steps condo owners can take to lower condo insurance rates in other ways, ranging from simple adjustments to their policies to major changes to the unit itself.

    • Get quotes from multiple insurance providers and shop around for a lower rate.
    • modify policy terms to lower monthly or annual premiums. assuming a higher deductible will often lead to a lower condo insurance rate.
    • Take advantage of available discounts for a lower rate on condo insurance. Providers may offer discounts to new customers or existing policyholders who bundle two or more policies together.
    • Consider refurbishing an outdated unit to bring it up to modern standards, which could lead to a lower insurance rate.
    • questions to ask about condo insurance

      When shopping for condo insurance, cost is often the number one concern for homebuyers, but there are plenty of other things to consider. It can be hard to know what questions to ask to accurately compare the best homeowners insurance providers and find the right terms and coverage to meet your needs. Asking the following questions can help condo owners better assess which condo insurance company is right for them.

      • what are the coverage limits of my policy?
      • Are there any discounts I can use to lower my condo insurance rate?
      • what deductible options are available and how will they affect the cost of condo insurance?
      • Can I add additional endorsements to my policy to cover more risks or increase coverage limits?
      • Is my dog’s breed covered by the policy’s liability protection terms?
      • Would adding security features like security cameras or fire extinguishers lower my condo insurance rate?
      • frequently asked questions

        Shopping for condo insurance, or any type of insurance, can seem daunting, but homeowners can make this process a lot easier by understanding some of the most important factors to consider. In particular, it’s a good idea to address some of the most common questions people have about the cost and coverage of condo insurance.

        p. What determines the cost of condo insurance?

        There are many factors that can influence the cost of condo insurance, including coverage limits, deductibles and discounts. Risk factors related to both the policyholder and the building can also affect the policyholder’s condo insurance rate. Those risk factors may include the condo owner’s credit and claims history, as well as the location and age of the building.

        p. How much does condo insurance cost on average?

        Across the country, the average cost of condo insurance is $539 per year, but annual rates can range from $267 to $949.

        p. Why do condo insurance costs vary so much by state?

        Some states may face a higher risk of natural disasters such as hurricanes and tornadoes, which can cause more extensive damage requiring expensive repairs. Policyholders may find that hurricane-affected areas like Florida have higher condo insurance rates than places like Utah or South Dakota, which may be less likely to experience natural disasters.

        p. What does condo insurance cover?

        Condominium insurance typically includes homeowners coverage to insure the walls, ceiling, and floors of the unit, as well as personal property coverage to protect the policyholder’s belongings and valuables. it usually also includes personal liability coverage. condo insurance often covers the same types of perils covered by a standard homeowners policy, such as fire, hail, and theft.

        p. What events are not covered by condo insurance?

        Condominium insurance generally does not cover perils related to natural disasters such as floods, earthquakes, and hurricanes. Homeowners may need to purchase separate policies or add endorsements to their existing condo insurance to cover these perils. water damage may be excluded as a covered peril depending on its source. a broken pipe would be covered by many condo insurance policies, but a clogged sewer line probably wouldn’t.

        p. what does hoa insurance cover?

        Depending on the type of condo insurance the homeowners association has, hoa insurance can cover anything from the central structure of the building to individual units. Bare wall coverage is a common policy used by condominium associations and only insures the structure of the building along with the common areas. The most comprehensive hoa policies, with full coverage, will insure walls, ceilings, floors, and fixtures, but won’t cover any personal possessions.

        p. What is the minimum coverage I need?

        Minimum coverage needs may vary based on the value of the policyholder’s possessions, as well as the unit itself. If you financed your condo purchase with a home loan, your lender will likely insist that you get enough condo insurance to cover the full replacement cost of the entire unit. state regulations and condominium association bylaws may require condo owners to also purchase a certain amount of coverage.

        p. whose insurance covers water damage to my unit?

        Water damage coverage depends on its source. Damage from broken pipes in a condo owner’s unit may be covered by your condo insurance, but generally only if the damage resulted from a sudden and accidental event. flood water would require a separate flood insurance policy to cover repair costs. meanwhile, water damage caused by pipes or fixtures located in common areas may be covered by the hoa policy.

        p. Do condo insurance and homeowner’s insurance cover the same risks?

        In many cases, condo insurance and homeowners insurance cover overlapping perils. fire, hail, lightning, smoke, theft, and some instances of water damage are often covered by both homeowners and condo insurance.

        p. Will condo insurance cover damage from other units?

        If the water damage is traced to a neighboring unit, then the condo’s insurance will likely pay for the necessary repairs. your own insurance probably won’t pay for any damages in that scenario because another party is liable.

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