Average Cost of Condo Insurance (2022)

Average Cost of Condo Insurance (2022)

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The average cost of condo insurance, also known as HO-6 insurance, is $429 per year across all 50 states. However, the average cost for this type of policy varies greatly depending on where you live and the amount of coverage you need.

Condo insurance is a type of policy that covers damage and repair costs for a condominium. Furthermore, HO-6 policies protect against theft of personal items, as well as liability costs if a guest is injured on the property. Given the financial protection that condo insurance provides, mortgage lenders sometimes require borrowers to purchase it.

Average cost of condo insurance

The average cost of condo insurance is $429 per year, but it varies widely by state. According to data from the National Association of Insurance Commissioners (NAIC), the difference in cost between the most expensive and the cheapest states for condo insurance is $695 per year.

The table below displays the average annual and monthly condo insurance rates by state, along with the difference compared to the national average. For instance, California has an average condo insurance rate of $535 per year, which is 25% higher than the national average.

State
Average monthly rate
Average annual rate
Difference vs. average
Alabama$45$54126%
Alaska$33$396-8%
Arizona$33$400-7%
Arkansas$45$53926%
California$45$53525%
Colorado$35$417-3%
Connecticut$33$399-7%
Delaware$36$4310.5%
District of Columbia$31$369-14%
Florida$80$964125%
Georgia$41$49315%
Hawaii$26$310-28%
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States with the lowest average condo insurance cost

The five states with the cheapest average condo insurance quotes all have rates that are at least 28% lower than the average in the United States. Some of the cheapest states for condo insurance are among the least populated in the country, including South Dakota.

Three of the five states are located in the Midwest. Other Midwestern states also rank as some of the cheapest. For instance, the average cost of condo insurance in Wisconsin and Minnesota is $280 and $312, respectively.

States with the highest average condo insurance cost

The three states with the most expensive HO-6 condo insurance rates all rank as some of the states with the greatest number of hurricanes.

Condo insurance in Florida is more expensive than an HO-6 policy in the second-most expensive state, Texas, by a margin of $174 per year. The reason condo owners in Florida tend to pay higher premiums on condo insurance compared to other states may be explained by the prevalence of hurricanes in the area. That's because an HO-6 policy covers the structural components of a condo unit, including walls, which can be damaged by strong winds caused by hurricanes.

How much is condo insurance by coverage limit?

While the average cost of condo insurance varies by region, another large determining factor of how much you’ll pay is the amount of dwelling coverage that you’d like to purchase. Generally, the higher your coverage limit, the higher the average condo insurance rate will be.

For example, the average condo insurance rate for a coverage limit of $75,000 to $99,000 is $534 per year, which is $161 more than the rate for a coverage limit of $13,999 and under.

Coverage limit
Average monthly rate
Average annual rate
$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
U.S. average$36$429
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What does condo insurance cover?

Condo insurance has four main types of coverage: building property coverage, personal property coverage, liability coverage and loss of use coverage. Policies may also include a fifth coverage feature called loss assessment coverage, which usually costs extra.

However, if your condo association master policy already covers some of these areas, you may not necessarily need all the protection available in the most comprehensive condo insurance policies.

Building property coverage: This protects you financially from damage to the interior of your condo unit resulting from a covered event, such as fire or wind damage. Up to your policy's limits, it will cover damage to your floors, walls, tiles, cabinets and other permanent fixtures in your condo.

Personal property coverage: Personal property coverage protects your belongings that aren't fixtures in your home. This includes clothes, furniture, portable appliances and other possessions that aren't affixed to your unit. As with building property coverage, you will only be able to file a personal property claim if the episode is a covered event, and coverage will only extend up to your policy's limits.

Liability coverage: Condo liability coverage provides financial protection for you and your family in the event you are held legally responsible for bodily injury or property damage. Liability protection is a key part of a condo insurance policy, as unforeseen accidents could leave you on the hook for thousands in legal fees. A typical condo insurance policy covers $100,000 in liability damages.

Loss of use coverage: This feature, also called additional living expenses coverage, will pay you for the increased living expenses associated with living outside your condo if it becomes uninhabitable due to a covered event. For instance, if your monthly bills increase because you're paying to live in a hotel, your condo insurance carrier will cover you for those expenses up to your policy limits.

Loss assessment coverage: Condo associations may charge individual condo owners for costs related to common areas in a condo complex, such as damage done to the outside of the building or medical bills from a guest's injury in a communal area. Loss assessment coverage will cover you for these association charges, up to your policy's limits.

Depending on your condo association's master policy, some of the property coverages offered in individual condo insurance policies may be redundant. A master policy is an insurance policy purchased by the condo association, and condo owners share the cost. Generally, there are three types of condo master insurance policies: bare walls coverage, single entity coverage and all-in coverage.

Bare walls coverage: This is the most basic type of master insurance policy. It only covers the structure of your condo building along with property located in common areas; nothing inside your condo is covered by these policies. If your building has bare walls coverage, you'll need to have both building property and personal property coverage in your condo insurance policy to fully cover your condo and its contents.

Single entity coverage: Also called an original specifications policy, these policies expand upon bare walls coverage by including protection for built-in property within a condo, such as floors, walls and fixed appliances. Any unit improvements or remodeling, however, is not covered under a single entity policy. If your building has single entity coverage, you'll still need personal property coverage, and if you've made extensive upgrades to your condo, building property coverage, too.

All-in coverage: This is the most comprehensive type of master insurance policy, as it covers all property that is part of the condo building structure, including improvements and additions to your condo. Under this policy, all of the fixed property within your condo — including walls, floors and appliances — are covered. If you have this type of master policy and want financial protection for all of your belongings, you'll only need to purchase condo insurance covering personal property damage, which means you'll find cheaper rates for your condo insurance policy than those buying plans with building property coverage.

Methodology

ValuePenguin collected condo insurance rates from the most recent report on condo insurance from the NAIC. The average cost of HO-6 policies was calculated both at the state level and by insurance coverage limits ranging from $13,999 and up. The countrywide average was calculated by taking the average condo insurance rates in all 50 states and the District of Columbia.

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