Important Facts About Condo Insurance in California
Condo insurance is homeowners insurance for people who own a condominium or co-op unit. As the owner, you're typically responsible for any damages to your unit.
While you also have shared rights or interests in the property's common areas, the condo or co-op association is usually responsible for insuring those spaces.
HO-6 condo insurance helps protect your unit and its contents and provides coverage for liability, loss of use, and more. Get a quote now.
Want to know more? This article will explore everything you need to know about condo insurance in California, from how much it costs and what it covers to actionable tips to lower the premium.
Key takeaways
- Condo (HO-6) insurance covers your unit's interior, personal belongings, and liability.
- It is not mandatory in California to have condominium insurance, but it is highly recommended for condo owners.
- The average cost of condo insurance in California can vary by location. However, rates are generally higher in disaster-prone areas.
- You can reduce condo insurance costs by bundling policies, raising deductibles, or improving your unit's safety features.
Is condo (HO-6) insurance mandatory in California?
The state does not legally require condo insurance in California, but it is often mandated by mortgage lenders or condo associations – also called homeowners’ associations (HOAs).
Mortgage lenders typically request proof of HO-6 insurance to protect their investments from interior damage or liability claims. Similarly, HOAs may require condo insurance to fill any gaps in their master policy coverage.
Note: If you rent a condo or co-op, you don’t need condo insurance since you don’t own the unit. However, it’s a good idea to consider renters insurance (HO-4 policy). It can protect your belongings and offer personal liability coverage.
How is condo insurance different from home insurance?
So, is there any difference between condo insurance and homeowners insurance?
Both types of insurance cover personal liability and belongings, but the key difference is what they protect structurally.
Homeowners insurance in California covers the entire structure of your home, including the exterior. On the other hand, a condo insurance quote usually covers only the improvements and upgrades inside your unit.
The Condo Association typically insures the rest of the building.
How much is condo (HO-6) insurance in California?
The cost of condo insurance can vary depending on where you live or your zip code. Nevertheless, the average condo insurance cost in California is $710.
Whether condo insurance in Los Angeles or any other city, insurance companies in California often determine your rate based on several factors, such as:
- Age and type of construction of the building
- Coverage types and amounts you choose
- Deductible level (higher deductibles usually mean lower premiums)
- Location of the condo
- Your claims history
- Your credit score (in most states)
- Your marital status (in most states)
- Proximity to fire stations or hydrants
Another factor, such as having a pool or owning certain dog breeds, can raise your rates due to higher liability risks. Additionally, condos in areas prone to natural disasters, like hurricanes or wildfires, often cost more to insure.
To help you understand better, here’s the condo insurance cost by location:
Urban areas
In bustling cities such as Los Angeles, San Francisco, and San Jose, condo insurance costs are typically higher. For instance, you can expect to pay around $1,092 annually.
These higher premiums are due to increased risks, such as theft, vandalism, and the high value of condos in these urban areas.
Coastal regions
If you own a condo in beautiful coastal cities like San Diego, your premiums may fall around $660 annually. Coastal regions often face risks such as wind or water damage, which can raise rates slightly
Inland areas
Inland cities such as Sacramento, Fresno, or Bakersfield generally have lower condo insurance premiums, averaging $602 annually.
These areas are less prone to natural disasters like wildfires or coastal storms, reducing insurance costs.
High-risk zones
Certain parts of California are considered high-risk due to natural disasters. For example:
- Wildfire zones: If your condo is near wildfire-prone areas such as Redding, you could pay $576 or more annually for insurance.
- Earthquake zones: In cities near major fault lines, such as San Bernardino or parts of the Bay Area, premiums can also climb. While standard HO-6 policies don’t cover earthquake damage, purchasing separate earthquake insurance adds to the total cost.
What does condo insurance cover in California
Condo insurance in California protects the interior of your condo unit, including any upgrades you have made, like updated kitchen cabinets or new flooring.
It also covers your personal belongings, such as electronics, appliances, and jewelry. Additionally, it offers coverage for loss of use, personal liability, and medical payments to others.
Here’s a breakdown of what’s included in standard California condo insurance policies:
- Dwelling coverage - Dwelling coverage pays to repair or replace the structural parts of your condo unit that you are responsible for if a disaster like a fire damages them. This typically includes everything inside your unit, including paint, flooring, and cabinetry. Sometimes, your HOA’s master policy may also cover these elements if it’s an all-in policy.
- Personal property coverage - HO-6 insurance in California also helps cover your personal belongings, including clothing, furniture, electronics, and other valuables. If items like jewelry, watches, firearms, or silverware are stolen, personal property coverage could help replace them.
- Loss of use coverage - If your California condo becomes unlivable due to covered loss or damage, loss of use coverage could help cover living expenses such as travel, temporary housing, or other costs needed to maintain your usual standard of living.
- Personal liability coverage - Liability coverage could help protect you if someone sues you for personal injury or property damage. Most policies provide coverage quotes of at least $100,000, with the option to increase this amount.
- Medical payments to others coverage - This coverage could help pay for minor medical expenses if a guest is wounded in your house. In California, it also includes workers’ compensation for occasional employees, like babysitters, housekeepers, or gardeners, who work in your home for fewer than ten hours a week.
California condo insurance coverage exclusions
While most condominium insurance in California provides the necessary protection, there are certain exclusions every Californian should know.
Many Californians wonder, "Does condo insurance cover water damage?" The answer depends on what caused the damage.
According to the Insurance Information Institute (III), condo insurance quotes may cover water damage from accidents like burst pipes, rain, or ice dams. However, it usually doesn’t cover sewer backups, drain issues, or flooding damage. For those, you’ll need extra coverage or a separate policy.
That being said, here are a few common California condo insurance coverage exclusions:
- Vehicle theft or damage: Personal items in your car may be covered, but the vehicle itself is not. For that, you’ll need auto insurance with optional comprehensive coverage.
- Earthquake and flood damage: Standard condo insurance in California doesn’t cover damage caused by floods or earthquakes. As a property owner, you’ll have to buy a separate insurance policy.
- Property of a tenant: If you rent out your condo, your tenant’s belongings are not covered under your policy.
- Earthquake and flood damage: Damage caused by earthquakes or floods is excluded unless you purchase separate coverage.
- Outdated systems or code upgrades: Insurance won’t cover systems or equipment that must be brought up to code.
- Damage from leaks or sewer backup: Standard policy quotes usually don’t include coverage for water damage from leaks or sewer backups.
Add-on coverage options
To enhance your protection, consider these additional coverage options:
- Unit assessment coverage: If your HOA charges a special assessment to cover a loss, this add-on could help pay your share of the cost.
- Umbrella insurance: For extra liability protection, a personal umbrella policy could help cover large claims or lawsuits after you reach the limit of your condo liability coverage. It may also protect against libel or slander cases.
- Scheduled personal property: Standard personal property coverage often has limits for high-value items. This add-on, sometimes called a “floater,” offers extra protection for valuables like jewelry, fine art, collectibles, or wine.
- Flood insurance: Since flood damage isn’t included in standard policies, you may need separate flood insurance. Policies are often issued through the National Flood Insurance Program, and some mortgage lenders may require it.
Tips on how to reduce costs of condo insurance in California
No matter what, you should always request and compare quotes. This will help you find the most affordable and comprehensive condo insurance in California.
Want to lower your condo insurance premium further? Follow these actionable strategies to the T:
Bundle your policies
Many insurance companies offer discounts if you buy multiple condo and auto insurance policies. Bundling could save you up to 20% or more, depending on your provider.
Take advantage of discounts
Your insurance company in California may provide discounts that are easy to qualify for. You may save money by having fire, smoke, or burglar alarms, installing a new roof, or staying claims-free for a few years.
Improve your credit score
In some states, your credit history could affect your premium. If you live in one of these states, improving your credit score could lower your rate over time.
Make home improvements
Add safety features such as fire alarms or burglar deterrents, which could help save you money. Installing storm-resistant shutters or garage doors may also reduce your premium in storm-prone areas.
Raise your deductible
Your deductible is the amount you pay out of pocket for a covered claim. Choosing a higher deductible could lower your premium, but make sure it’s an amount you can afford to pay if needed.
These are a few strategies to lower your condo insurance costs while getting the necessary coverage.
Still have questions?
Want to learn more about condo insurance in California? Here are some frequently asked questions.
Is condo insurance in California included in HOA fees?
No, condo insurance is not typically included in HOA fees. HOA fees cover common areas and shared structures, while HO-6 insurance protects your personal property and the unit's interior.
Why is it hard to get condo insurance in California?
Obtaining condo insurance in California can be challenging due to increased risks like wildfires, earthquakes, and other natural disasters. Insurers often limit policies or raise premiums in high-risk areas.
Why are so many insurance companies leaving California?
Many insurers are leaving California due to the high frequency of natural disasters, rising claims costs, and stringent state regulations that limit their ability to adjust premiums.
Who has the cheapest condo insurance in California?
The cheapest condo insurance in California can vary by provider and location. Companies such as State Farm, Progressive, and Allstate often offer competitive rates. Still, you should compare condo insurance quotes, which is key to finding the best deal.
Does California have an insurance mandate?
While California doesn’t have a mandate requiring condo insurance, lenders often require it for mortgage approval. It’s also commonly recommended for financial protection.
