Q

How much is condo insurance? Average cost in 2022

A

Condo owners pay on average $42 a month or $506 per year for coverage. But how much YOU pay will vary based on where you live, your claims history, and coverage level.

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The average cost of condo insurance is is $506 per year or $42 a month, according to the National Association of Insurance Commissioners (NAIC). [1] Also referred to as HO-6 insurance, rates for this type of homeowners insurance vary greatly depending on where you live, your deductible amount, and how much coverage you need for the interior of your unit.

Key Takeaways

  • Your rates are affected by  your location, coverage amounts, credit and claims history, and policy deductible.

  • You can save on condo insurance by choosing a higher deductible, bundling your condo and car insurance, and installing security systems or protective devices.

  • Your condo association’s master policy may provide some amount of coverage for the interior structure of your condo unit.

  • But you need your own HO-6 condo insurance policy to cover your personal belongings and liability.

Average condo insurance cost 

While the average cost of condo insurance is $506 per year, your own rates may vary significantly depending on which state you live in. In fact, the gap between the most and least expensive states for condo insurance is almost $700.

Generally speaking, condo insurance is more expensive in states prone to natural disasters, as the risk of catastrophic property damage is higher. To illustrate this, we broke down the cost of condo insurance in all 50 states and Washington, D.C. Average annual and monthly rates are based on an NAIC analysis of 2018 condo insurance data.  

State

Average annual cost

Average monthly cost

Alabama

$541

$45

Alaska

$396

$33

Arizona

$400

$33

Arkansas

$539

$45

California

$535

$45

Colorado

$417

$35

Connecticut

$399

$33

D.C.

$369

$31

Top 5 most expensive states for condo insurance

The most expensive states for condo insurance have a combined average rate of $747, over 30% higher than the national average. This is no surprise considering each of these states are susceptible to frequent tropical storms or tornadoes in any given year.

StateAverage annual costAverage monthly cost
Florida$964$80
Texas$790$66
Louisiana$748$62
Oklahoma$631$53
Mississippi$600$50

Top 5 cheapest states for condo insurance

The cheapest states for condo insurance had a combined average rate of $292, around 42% lower than the national average. Most of these states don’t experience a high frequency of extreme weather, so they generally see lower rates.

StateAverage annual costAverage monthly cost
Utah$269$22
Wisconsin$280$23
Iowa$295$25
South Dakota$307$26
Maryland$310$26

Average condo insurance cost by coverage amount

In addition to your condo’s location, your rates are also based on the amount of dwelling coverage in your policy. In many cases, the policy that covers your condo building and common areas does not extend to individual units. So you’ll need this coverage to cover damage to your floors, walls, bathroom fixtures, and anything else that is built into your condo.

Below is the average annual premium for 10 different levels of coverage, according to the NAIC.

Coverage limitAverage annual costAverage monthly cost
$13,999 and under$31$373
$14,000 to $19,999$31$366
$20,000 to $25,999$37$445
$26,000 to $31,999$34$407
$32,000 to $37,999$34$403
$38,000 to $43,999$36$434
$44,000 to $49,999$34$413
$50,000 to $74,999$39$473
$75,000 to $99,999$45$534
$100,000 and over$71$857

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What does condo insurance cover?

A standard HO-6 condo insurance policy includes six primary coverages that protect you financially in the event of property damage or an expensive lawsuit.  

  1. Dwelling coverage: Pays to repair the interior structure of your condo — including walls, floors, and countertops — if it’s damaged by a covered loss.

  2. Personal property coverage: Pays to repair or replace your belongings, including clothing, appliances, furniture, and electronics in the event of damage or theft. 

  3. Loss of use coverage: If you’re unable to stay in your condo after a covered loss, this will pay for relocation expenses, lodging, restaurant meals, and other additional living expenses while your condo is being repaired.

  4. Loss assessment coverage: This is an optional coverage that pays for losses assessed to you and other condo owners if the building itself or property belonging to the condo association is damaged or stolen. Condo insurance will only reimburse you for loss assessments if the cause of damage is covered by your policy. 

  5. Liability coverage: Covers the cost of legal expenses if you're held liable for injury or personal property damage to someone else.

  6. Medical payments coverage: Covers the cost of medical expenses if one of your condo guests sustains a minor injury. 

Genius tip: Check your condo association’s master policy

The amount of dwelling coverage you need depends on your condo building’s master policy and whether coverage extends to the inside of each unit. The more the master policy covers, the less dwelling coverage you need (and the cheaper your rates will be).

  • Bare walls coverage: The most basic type of master policy, it generally only covers the condo building and personal property belonging to the condo association, but it won’t cover anything inside of your unit. If your building has bare walls coverage, you’ll need enough dwelling coverage to pay for a complete rebuild of your individual condo unit. You’ll also need enough personal property coverage to cover all of your belongings inside.

  • Single entity coverage: This type of master policy coverage extends to built-in property within your condo. That means your floors, walls, fixtures, and anything built into the unit are all covered. However, unit improvements and alterations are generally not covered. Similar to bare walls coverage, you’ll also need personal property coverage for all of your belongings inside.

  • All-in coverage: The most comprehensive type of master policy, it covers built-in property as well as renovations and alterations to the unit. Like the other master policy types, this doesn’t cover your personal belongings, so you’ll want to be sure any movable property is fully covered.

What factors determine the cost of condo insurance?

There are several factors your insurance company will consider when determining your condo insurance rates. 

Location

Location is a key indicator of how high or low your condo insurance premiums will be. If you live in an area where wildfires or extreme weather are prevalent, you’ll likely have higher condo insurance rates. Condo insurance also generally costs more in large cities where the cost of construction and labor is higher. 

Coverage amounts

Your condo insurance costs are directly tied to the amount of coverage in your policy. The more coverage you have, the higher your premiums will be. 

Credit history

Insurance companies also look at your credit score when determining your coverage eligibility and rates. In general, the higher your credit score, the lower your rates.

Age and condition

Older condos are generally more prone to plumbing and electrical issues, both of which can lead to expensive problems if they’re not maintained properly. Making improvements and upgrades to older units is a good way to keep your insurance premiums down.

Deductible

A deductible is the amount you’re responsible for paying before insurance kicks in to cover a loss. Increasing your policy deductible will likely land you lower condo insurance rates. Just make sure you have enough in savings to cover the higher out-of-pocket cost should you file a claim.

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