The average cost of condo insurance is $511 per year or $43 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.
Average condo insurance cost
While the average cost of condo insurance is $511 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 more than $500.
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 2020 condo insurance data.
State | Average annual cost | Average monthly cost |
|---|---|---|
Alabama | $575 | $48 |
Alaska | $416 | $35 |
Arizona | $429 | $36 |
Arkansas | $564 | $47 |
California | $576 | $48 |
Colorado | $454 | $38 |
Connecticut | $409 | $34 |
D.C. | $367 | $31 |
Delaware | $451 | $38 |
Florida | $1,092 | $91 |
Georgia | $541 | $45 |
Hawaii | $355 | $30 |
Idaho | $428 | $36 |
Illinois | $404 | $34 |
Indiana | $360 | $30 |
Iowa | $286 | $24 |
Kansas | $393 | $33 |
Kentucky | $398 | $33 |
Louisiana | $759 | $63 |
Maine | $352 | $29 |
Maryland | $323 | $27 |
Massachusetts | $432 | $36 |
Michigan | $374 | $31 |
Minnesota | $337 | $28 |
Mississippi | $617 | $51 |
Missouri | $404 | $34 |
Montana | $444 | $37 |
Nebraska | $359 | $30 |
Nevada | $450 | $38 |
New Hampshire | $350 | $29 |
New Jersey | $460 | $38 |
New Mexico | $426 | $36 |
New York | $559 | $47 |
North Carolina | $487 | $41 |
North Dakota | $290 | $24 |
Ohio | $319 | $27 |
Oklahoma | $664 | $55 |
Oregon | $377 | $31 |
Pennsylvania | $395 | $33 |
Rhode Island | $539 | $45 |
South Carolina | $501 | $42 |
South Dakota | $313 | $26 |
Tennessee | $481 | $40 |
Texas | $808 | $67 |
Utah | $278 | $23 |
Vermont | $349 | $29 |
Virginia | $370 | $31 |
Washington | $398 | $33 |
West Virginia | $322 | $27 |
Wisconsin | $267 | $22 |
Wyoming | $451 | $38 |
Top 5 most expensive states for condo insurance
The most expensive states for condo insurance have a combined average rate of $789, over 54% 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.
State | Average annual cost | Average monthly cost |
|---|---|---|
Mississippi | $617 | $51 |
Oklahoma | $664 | $55 |
Louisiana | $759 | $63 |
Texas | $808 | $67 |
Florida | $1,092 | $91 |
Top 5 cheapest states for condo insurance
The cheapest states for condo insurance have a combined average rate of $287, around 44% lower than the national average. Most of these states don’t experience a high frequency of extreme weather, so they generally see lower rates.
State | Average annual cost | Average monthly cost |
|---|---|---|
Wisconsin | $267 | $22 |
Utah | $278 | $23 |
Iowa | $286 | $24 |
North Dakota | $290 | $24 |
South Dakota | $313 | $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 most cases, your condo building’s master policy covers the condo building and common areas, but not individual units. So you’ll need a separate policy 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 limit | Average annual cost | Average monthly cost |
|---|---|---|
$13,999 and under | $355 | $30 |
$14,000 to $19,999 | $377 | $31 |
$20,000 to $25,999 | $389 | $32 |
$26,000 to $31,999 | $419 | $35 |
$32,000 to $37,999 | $412 | $34 |
$38,000 to $43,999 | $415 | $35 |
$44,000 to $49,999 | $426 | $35 |
$50,000 to $74,999 | $475 | $40 |
$75,000 to $99,999 | $546 | $45 |
$100,000 and over | $878 | $73 |
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.
Dwelling coverage: Pays to repair the interior structure of your condo — including walls, floors, and countertops — if it’s damaged by a covered loss.
Personal property coverage: Pays to repair or replace your belongings, including clothing, appliances, furniture, and electronics in the event of damage or theft.
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.
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.
Liability coverage: Covers the cost of legal expenses if you're held liable for injury or personal property damage to someone else.
Medical payments coverage: Covers the cost of medical expenses if one of your condo guests sustains a minor injury.
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.
