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Average Cost of Condo Insurance (2020)

Average Cost of Condo Insurance (2020)

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The average cost of condo insurance, also known as an HO-6 insurance policy, is $478 per year. However, the average cost of condo insurance can vary widely depending on where you live and the coverage limits that you select. Condo insurance protects condo dwellers from damage to the interior of their units. Furthermore, an HO-6 policy protects against theft of personal items and liability costs if a guest is injured on the policyholder’s property. Given the financial protection that it provides, condo insurance is often required by mortgage lenders.

Average Cost of Condo Insurance

The average cost of condo insurance is $478 per year, but it varies widely from state to state. According to data from the National Association of Insurance Commissioners, the difference in cost between the most expensive and the cheapest states for condo insurance is $720 per year. The table below displays the average condo insurance cost by state on a monthly and annual basis, along with the percentage difference compared to the national average. For instance, California has an average cost of condo insurance of $489 per year, which is 2% greater than the national average.

StateMonthly Insurance RateAnnual Condo Insurance Rate% Difference vs. Average
New Hampshire$25$301-59%
New Jersey$37$438-9%
New Mexico$31$376-27%
New York$49$58819%
North Carolina$33$395-21%
North Dakota$22$263-82%
Rhode Island$37$438-9%
South Carolina$39$469-2%
South Dakota$22$269-78%
West Virginia$25$300-59%
U.S. Average$40$478

States With The Lowest Average Condo Insurance Cost

The five states with the cheapest average condo insurance quotes all had rates that were at least 43% lower than the average in the U.S. Some of the cheapest states for condo insurance are among the least populated in the country, including North Dakota and South Dakota. Furthermore, four of the five states are located in the Midwestern region of the country. Other Midwestern states also rank as some of the cheapest: for instance, the average homeowners insurance cost for a condo in Minnesota and Ohio is $277 and $302, respectively.

Average Cost of Condo Insurance by State

States With The Highest Average Condo Insurance Cost

Unlike the cheapest states for condo insurance, the states with the most expensive HO-6 insurance policies are situated in different regions of the country. Condo insurance in Florida is more expensive than an HO-6 policy in the second-most expensive state by a margin of $220 per year. The reason that condo owners in Florida pay a premium on condo insurance compared to other states may be explained by the prevalence of hurricanes in the area. That is because an HO-6 policy covers the structural components of a condo unit, including walls, which can be damaged by strong winds, such as those caused by hurricanes. In fact, the three states with the highest average condo insurance cost all rank as some of the states with the greatest number of hurricane strikes.

States With The Most Expensive Average Cost of Condo Homeowners Insurance

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 cost of condo insurance will be. Below, we list different coverage limits and the average monthly and annual cost of condo insurance.

Coverage LimitMonthly Insurance RateAnnual Condo Insurance Rate
$13,999 and under$28$338
$14,000 to $19,999$28$338
$20,000 to $25,999$36$426
$26,000 to $31,999$31$376
$32,000 to $37,999$31$376
$38,000 to $43,999$33$398
$44,000 to $49,999$32$383
$50,000 to $74,999$37$447
$75,000 to $99,999$42$509
$100,000 and over$72$866
U.S. Average$40$478

What Does Condo Insurance Cover?

Condo insurance generally 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, though this protection often comes at an extra cost. 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 you have 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: Also called additional living expenses coverage, this feature will pay you for the increased living expenses associated with living outside your condo if it becomes uninhabitable due to a covered event. So 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 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 its cost is shared by condo owners. 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 will be 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, will not be 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 of the fixed property within your condo—including walls, floors and appliances—will be covered. If you have this type of master policy and want financial protection for all your belongings, you'll only need to purchase condo insurance covering personal property damage, meaning you'll find cheaper rates for your condo insurance policy than those buying plans with building property coverage.

Joe Resendiz

Joe Resendiz is a former investment banking analyst for Goldman Sachs, where he covered public sector and infrastructure financing. During his time on Wall Street, Joe worked closely with the debt capital markets team, which allowed him to gain unique insights into the credit market. Joe is currently a research analyst who covers credit cards and the payments industry. He earned a bachelor’s degree from the University of Texas at Austin, where he majored in finance.

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