Condo Insurance Costs & Rates in Chicago

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Owners of condominiums in Chicago are not required by law to buy condo insurance, as the structure of the home is covered by a condo board policy.

However, it is possible that your condo board or mortgage provider requires owners to have condominium insurance to protect their homes. And even though it's not mandatory, Chicago condo owners should strongly consider purchasing condo insurance.

Do I need condo insurance in Chicago?

Condo insurance isn't mandatory in Chicago. But there are two scenarios where you might be required to buy it.

According to Illinois state law, your condo association may require you to buy coverage to own the unit. Plus, most mortgage contracts require it.

Neither of these requirements is legally mandated in Chicago, so there are no legal minimums to meet. But your lender or condo board likely has coverage minimums— especially for liability insurance.

Even if condo insurance is not required, buying it is still an excellent idea. Also called HO-6 insurance, it goes beyond the basic protection of the condo building's shared insurance. It provides coverage for your home and personal property against all kinds of perils. This includes natural disasters, fire, theft and liability protection.

What Chicago condo insurance covers

Condominium insurance is a type of home insurance that provides coverage similar to what's in a standard homeowners policy. But there are a few exceptions. This is because some elements of the property are covered by a shared policy paid for by every owner in the building.

Condo insurance generally provides coverage for your personal property, liability protection and any structure that's considered part of the interior of your home. For the purposes of condo insurance, the interior includes walls, floors and any permanent fixtures, such as sinks, toilets and lights.

Your policy may also include loss-of-use coverage, which pays for living expenses if you can't live in your home due to a covered peril. A common one in Chicago is storm-related wind damage.

Another coverage, which is unique to a condominium policy, is loss assessment. If your building has severe damage, such as from a tornado or severe storm, that exceeds the limits of the shared coverage, the condo board will split the remaining expense among all condo owners via an assessment. Loss assessment coverage pays that amount, as long as the damage is caused by a covered hazard.

A separate policy protects the building's structure

The main exclusion from condo insurance — and the key difference between condo insurance and home insurance — is that it doesn't cover the structure of your condo building. This includes the roof, exterior walls and any areas shared by multiple residents, like hallways or the lobby. These are covered by the shared policy paid for with your condo association costs.

Say you experience a severe hailstorm that damages your building's roof and the furniture on your private balcony. The roof damage would be covered by your building's shared policy, but you would claim the furniture under your own condo insurance policy.

What your condo association policy covers

  • The building's structure, including exterior walls and roof
  • The land your condo is built on
  • Common areas of your building, such as hallways and lobbies
  • Shared amenities like fitness centers and elevators

What is the average cost of condo insurance in Chicago?

Quotes were collected from four leading condominium insurance providers in Chicago to get an understanding of how much condo owners can expect to spend to protect their homes.

The average cost of condo insurance in Chicago was $453 per year. This is higher than the Illinois average of $363, but below the US average. Nationwide, the average price is $478.

Condo insurance in Chicago is also much cheaper than a typical HO-3 homeowners insurance policy, which costs $1,243 per year.

However, there is a considerable difference based on the amount of coverage and the company.

For example, for a $12,500 dwelling coverage limit — meaning you receive a maximum payout of $12,500 for damage to your home's interior walls, flooring and other fixtures — the average price was $395 annually. That's a $58 difference from the Chicago average. And the most expensive insurance company for Chicago condo owners, Progressive/Homesite, was $222 higher than the least expensive, Travelers.
How Much Condo Insurance Costs in Chicago

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Best condo insurance companies in Chicago

Travelers consistently provided the best condo insurance prices in Chicago across all coverage levels. The average price from Travelers was $325 per year. That's a $128 savings, compared with the city average.

Travelers also has excellent customer service reviews and plenty of local insurance agents if you prefer to speak in person. Alternatively, Travelers customers can purchase and manage their policies online.

State Farm came in second place, with an average cost of $443 per year for condo insurance. This is $10 cheaper than the average price r in Chicago.

State Farm also has high customer service ratings and plenty of agents in the Chicago area, so it's worth considering, especially if your quote from Travelers is unsatisfactory.

Remember that every condo insurance provider calculates their rates differently, and prices may vary based on location, home type and coverage levels. You may find a better rate at a different company, based on your home and needs. Always check with multiple companies to ensure you're getting the best rates.

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