Managing Your Condo Insurance Cost [Know the Numbers]
Imagine you've just purchased a sleek downtown condo with floor-to-ceiling windows and a view that makes your friends jealous. As you're unpacking boxes, a neighbor's overflowing bathtub causes water damage to your newly installed hardwood floors. This is where condo insurance, or HO-6 insurance, becomes your financial lifeline.
But how much does condo insurance cost? On average, condo owners in the U.S. pay about $656 per year for insurance, according to data from Insurance.com. This covers your unit's interior, personal belongings, and potential liabilities, filling the gaps left by your condo association's master policy.
Let's explore HO-6 insurance costs across the country and uncover why your premiums might vary. (Hint: Did you know that living in a gated community could actually lower your rates?)
Key takeaways
- Average condo insurance rates are $656 per year or $55 per month.
- Your condo's location, coverage amounts, and even your credit score can make your rates soar or plummet.
- The cheapest states for condo insurance are Wyoming, Vermont, and Maine.
- The most expensive states for condo insurance are Louisiana, Oklahoma, and Texas.
- You can reduce your rates by bundling policies, improving home security, and boosting your credit score.
How much is condo insurance?
So, how much is insurance for a condo? Let's break it down by the numbers.
The average cost of condo insurance is $656 annually or $55 monthly. This estimate is based on a policy with $60,000 in personal property coverage, $300,000 in liability coverage, and a $1,000 deductible.
But here’s the catch: where you live can cause your condominium insurance rates to fluctuate dramatically.
We ranked annual insurance rates for condos from most expensive to least expensive so you can see where your state falls on the list. These rates are for $60,000 in personal property coverage, $300,000 in liability coverage, and a $1,000 deductible.
- Louisiana: $1,093
- Oklahoma: $1,071
- Texas: $1,007
- Florida: $962
- Alaska: $930
- Arizona: $892
- Colorado: $883
- North Carolina: $882
- Georgia: $872
- Arkansas: $801
- California: $767
- Mississippi: $765
- Massachusetts: $669
- Utah: $668
- Pennsylvania: $657
- New York: $656
- Alabama: $655
- Michigan: $651
- Connecticut: $646
- Maryland: $642
- Oregon: $633
- Nevada: $620
- Tennessee: $616
- Washington: $616
- Illinois: $614
- Indiana: $590
- Rhode Island: $581
- Ohio: $573
- South Carolina: $569
- Virginia: $548
- Nebraska: $542
- Wisconsin: $527
- Washington, D.C.: $503
- New Hampshire: $502
- Idaho: $499
- Montana: $486
- Missouri: $485
- New Jersey: $484
- Kansas: $482
- Kentucky: $476
- Iowa: $435
- Minnesota: $423
- Hawaii: $413
- New Mexico: $408
- Delaware: $407
- South Dakota: $389
- North Dakota: $373
- West Virginia: $373
- Maine: $362
- Vermont: $289
- Wyoming: $272
What coverage types are included in your condo insurance policy?
Condo insurance policies are designed to cover the parts of your condominium you physically own, plus all of your belongings. Your policy may include:
- Dwelling coverage—protects the interior of your condo unit, including walls, flooring, and built-in appliances.
- Personal property insurance coverage—covers the items you own, including furniture, clothing, knickknacks, and electronics.
- Loss of use coverage—pays for temporary housing if a covered event makes your condo uninhabitable.
- Personal liability coverage—provides financial compensation if someone is injured in your condo or you accidentally damage someone else's property.
How much should condo insurance cost by coverage amount?
This table from the National Association of Insurance Commissioners (NAIC) shows how much condo insurance costs countrywide based on how much coverage you have:
Coverage amount | Average annual premium for an HO-6 insurance policy |
|---|---|
Under $14,000 | $395 |
$14,000–$19,999 | $397 |
$20,000–$25,000 | $402 |
$26,000–$31,999 | $427 |
$32,000–$37,999 | $452 |
$38,000–$43,999 | $448 |
$44,000–$49,999 | $457 |
$50,000–$74,999 | $517 |
$75,000–$99,999 | $571 |
$100,000 and above | $857 |
Another thing to remember is that rates will increase as you add liability protection (for bodily injury and property damage) and loss of use coverage (for additional living expenses). Many condo insurance policies come with $100,00 in liability coverage, but you should purchase more if you need it.
Condo association’s master building policy
The amount of condo insurance you need will highly depend on your condo association's master building policy. This policy typically covers the building's exterior and any shared spaces all residents can use.
These shared areas often include:
- Lobbies and hallways
- Elevators
- Clubhouses, game rooms, and recreation rooms
- Gyms and swimming pools
- Parking areas
- Landscaping and outdoor spaces
Master policies can differ a lot between associations. Some might cover things inside your unit, like built-in appliances, while others only protect the basic structure. The more comprehensive the master policy, the less you may need to insure yourself.
Quick tip
Chat with your condo board or manager to understand exactly what's covered under their master policy. You don't want to pay for coverage you don't need or be caught without protection when you need it most.
What factors determine the average cost of condo insurance?
Several factors can cause the price of condo insurance to go up or down:
- Location. Average premiums vary from $272 in Wyoming to $1,093 in Louisiana despite the national average being $656. Understanding how much condo insurance should cost in your area can help you estimate how much you might pay.
- Coverage amounts. Premiums rise as you add more coverage to your policy. For example, in California, policies with $40,000 in personal property coverage average $669 annually, while those with $100,000 in coverage cost average $931.
- Insurance company. Insurers use different algorithms and scoring models to determine your premiums. That’s why you may grab three quotes with completely different condo insurance estimates.
- Your credit score. Around 85% of home insurance companies use credit-based insurance scores to calculate your premiums, which can also affect how much you pay.
- Your claims history. You may pay more for condo insurance if you or the condo you live in has a history of previous claims.
- Master policy type. The type of master policy your condo association has (bare walls, single entity, or all-inclusive) will also influence how much additional coverage you need to purchase yourself. Bare walls is the most basic, while all-inclusive is the most robust.
- Building features. Your building’s age, construction materials, and safety features can impact your condo insurance price.
Condo insurance cost vs. homeowners insurance cost
Now, you may wonder, “Is condo insurance cheaper than home insurance?" The answer is, generally, yes.
Condo insurance (an HO-6 policy) is typically less expensive than homeowners insurance (an HO-3 policy). This price difference primarily stems from the scope of coverage each policy provides.
On average, condo insurance costs $656 per year, while homeowners insurance costs $2,377 annually, according to a report from Insurify. The main reason for this disparity is that condo insurance doesn't need to cover the entire building structure.
Here's a quick comparison of HO-3 and HO-6 policies:
- Structure coverage: Homeowners insurance covers the entire home structure plus detached structures like garages and sheds. But condo insurance typically only covers the part of the building you own, from the drywall in.
- Personal property: Both policies cover personal belongings, but homeowners may have higher coverage limits due to larger living spaces.
- Loss of use: Both often cover additional living expenses, but amounts may differ based on living costs and space size.
What are some common condo insurance discounts?
No matter what type of condo insurance you need, you can usually use discounts to save some money. These discounts vary by insurance company but may include:
- Bundle discount: This is where you combine your condo insurance with another policy at the same company, like auto insurance.
- Safety device installation: Installing smoke detectors, fire alarms, security systems, or water leak detection devices can lower your rates.
- Auto-pay enrollment: You can sometimes earn a small discount by setting up automatic payments (known as autopay) from a bank account.
- Claims-free discount: Maintaining a clean claims history for a certain period can result in lower premiums.
- Gated community discount: Living in a gated or secure community may qualify you for reduced rates.
- Affiliation discounts: Being retired, a member of certain professional organizations, or a graduate of specific universities might make you eligible for special rates.
- Loyalty discount: Staying with the same insurer for multiple years can sometimes lead to lower premiums.
Quick tip…
Remember to ask your insurance provider about any available discounts you may qualify for to maximize your savings.
Tips for lowering condo insurance rates
In addition to discounts, using these tips may also reduce your condo insurance costs:
- Increase your deductible. Selecting a higher condo insurance deductible can lower your premium. But only do this if you’re certain you can afford the higher out-of-pocket cost you’d face if you filed a claim.
- Shop around for condo insurance. Don't settle for the first quote you receive. Grab several condo insurance estimates to find which company will give you the best deal.
- Improve your credit score. Your credit score impacts so many parts of your life, including insurance premiums. Raising your score by paying bills on time and reducing debt can go a long way in helping lower your rates.
- Conduct regular maintenance. Keep your condo in good condition to help prevent claims that would cause premiums to spike.
- Review and update your coverage annually. Reassess your insurance needs each year to confirm you’re not under- or over-insured.
- Consider dropping low-value claims. Filing too many small claims can increase your rates. Sometimes, it's more cost-effective to pay for minor damages out-of-pocket if you can.
- Ask about group insurance policies. Some condo associations offer group rates for unit owners, which can be cheaper than individual policies.
Still have questions?
Even after learning the ins and outs of condo insurance prices, you might find yourself with lingering questions. Here are some FAQs to explore:
What is the average cost for condo insurance in Florida?
Average condo insurance costs in Florida range from $789 per year for $40,000 in personal property coverage to $1,291 per year for $100,000 in coverage. This puts monthly premiums between $66 and $108 on average.
So, why is this condo insurance so expensive? It’s mainly Florida's vulnerability to hurricanes and other natural disasters.
What is the best location for condominiums?
If you're looking for the lowest condo insurance rates, states like Wyoming, Vermont, Maine, North Dakota, and West Virginia tend to offer the most affordable premiums. These areas are known for having lower population density, fewer natural disaster risks, and lower property values, which may play into the lower rates.
So, how much does HO-6 condo insurance cost in these states? Typical policies range from $21 to $39 per month, depending on how much coverage you need.
Do most states require home or condo insurance?
Here’s a surprise: states do not typically require home or condo insurance by law. However, this doesn't mean you can go without it. If your condo is secured by a mortgage, your lender will most certainly require you to have insurance to offset the risk they’re taking on by lending you money.
Plus, many condo associations mandate that unit owners carry individual insurance policies. This requirement is often buried in the fine print of your association's bylaws or covenants.
Even if it's not required, having condo insurance can help protect you financially from potential losses, whether from weather events, theft, or liability claims.
Is a condo the same as a flat?
While "condo" and "flat" are sometimes used interchangeably, they can mean different things depending on where you are. In the U.S., a condominium is a privately owned individual unit within a community of other units. Condo owners jointly own shared common areas and amenities.
A flat typically refers to a single-story apartment within a larger building. This term is more commonly used in the U.K. and some other countries. In the U.S., the main distinction is ownership. You can own a condo, but you typically rent a flat. However, keep in mind that these terms may be used differently in various regions or countries.
Is homeowners insurance necessary for a condominium?
Traditional home insurance isn’t necessary for a condo because you’ll have an HO-6 policy instead. For context, there are eight types of home insurance. HO-3 policies are typically what you think of as traditional homeowners insurance, and HO-6 policies are specifically for condo owners. HO-6 policies cover what the master policy doesn't, including your unit’s interior, your personal items, and your liability.
Why is condo insurance so expensive in some areas?
Condo insurance costs can be higher in some areas if there are higher crime rates, if the condo is in an area with an increased risk of natural disasters, or if building materials and labor have increased. For example, a condo on the beach in Sarasota, Florida, may have higher insurance rates than a condo in Cheyenne, Wyoming, because it's statistically more likely to experience property damage.
How much is condo insurance per month?
Typical condo insurance costs are around $55 per month nationwide. In states like Wyoming, these rates can be as low as $21 per month. In Louisiana, it’s as high as $111 per month.
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