What is Condo Insurance and How Much Does it Cost?
Condo insurance covers your condo unit for fire, windstorms, vandalism or other damage. It also covers your belongings, as well as liability claims and additional expenses you might face.
Condo insurance tends to be affordable: The average condo insurance policy runs $44 a month, which is less than half the typical cost for a standard home insurance policy.
What does condo insurance cover?
Also called HO-6 insurance, condo insurance covers your condo unit, belongings, additional living expenses, personal liability and the medical expenses of guests who are injured at your home.
| Coverage type | What it covers |
|---|---|
| Dwelling | The interior of your condo unit, including the drywall, flooring and fixtures. |
| Personal property | Anything of yours that isn’t attached to the condo unit, including belongings like clothes, electronics, furniture and appliances. |
| Loss of use | Your additional living expenses, including meals and hotel stays, if you have to leave your condo for a while because of a covered danger. |
| Liability | Legal and medical bills tied to property damage or injuries caused to others. |
| Guest medical expenses | The medical bills of guests who are injured while at your condo. |
| Loss assessment | Condo association assessments for shared costs, such as building or roof repairs. |
Some condo or HO-6 insurance policies combine dwelling and personal property coverages, so keep an eye out for that as you shop around for quotes.
What is not covered by condo insurance?
Condo insurance doesn’t usually cover damage or destruction to your condo unit or possessions caused by these dangers:
- Earthquakes
- Floods
- Water or sewer backup
- Rodents or insects, like termites
- Wear and tear
However, you should be able to buy separate insurance to cover most, if not all, of these risks.
How much is condo insurance?
Condo insurance costs $531 a year, on average, according to the National Association of Insurance Commissioners.
How much you pay for condo insurance depends on a number of factors, including where you live. For example, the average cost of a condo/HO-6 policy in Wisconsin is just $276 a year, compared to $1,049 a year in Florida.
Average cost of condo insurance by state
| State | Annual rate |
|---|---|
| Alabama | $629 |
| Alaska | $435 |
| Arizona | $448 |
| Arkansas | $600 |
| California | $626 |
| Colorado | $484 |
| Connecticut | $411 |
| Delaware | $482 |
| Florida | $1,049 |
| Georgia | $577 |
| Hawaii | $383 |
| Idaho | $465 |
| Illinois | $416 |
| Indiana | $366 |
| Iowa | $295 |
| Kansas | $392 |
| Kentucky | $405 |
| Louisiana | $818 |
| Maine | $389 |
| Maryland | $327 |
| Massachusetts | $442 |
| Michigan | $372 |
| Minnesota | $355 |
| Mississippi | $661 |
| Missouri | $406 |
| Montana | $508 |
| Nebraska | $378 |
| Nevada | $469 |
| New Hampshire | $374 |
| New Jersey | $446 |
| New Mexico | $448 |
| New York | $490 |
| North Carolina | $511 |
| North Dakota | $293 |
| Ohio | $327 |
| Oklahoma | $668 |
| Oregon | $384 |
| Pennsylvania | $398 |
| Rhode Island | $561 |
| South Carolina | $520 |
| South Dakota | $320 |
| Tennessee | $500 |
| Texas | $856 |
| Utah | $289 |
| Vermont | $359 |
| Virginia | $381 |
| Washington | $413 |
| Washington, D.C. | $370 |
| West Virginia | $345 |
| Wisconsin | $276 |
| Wyoming | $491 |
5 cheapest states for condo insurance
| State | Average annual rate |
|---|---|
| Wisconsin | $276 |
| Utah | $289 |
| North Dakota | $293 |
| Iowa | $295 |
| South Dakota | $320 |
5 most expensive states for condo insurance
| State | Average annual rate |
|---|---|
| Florida | $1,049 |
| Texas | $856 |
| Louisiana | $818 |
| Oklahoma | $668 |
| Mississippi | $661 |
The cost of your condo insurance policy also depends on how much coverage you buy.
If you buy less than $13,999 of coverage, the average premium cost is $395 a year. But if you get a condo insurance policy with more than $100,000 of coverage, the typical price more than doubles to $857 a year.
Cost of condo insurance by coverage amount
| Coverage amount | Average annual rate |
|---|---|
| $13,999 and under | $395 |
| $14,000 to $19,999 | $397 |
| $20,000 to $25,999 | $402 |
| $26,000 to $31,999 | $427 |
| $32,000 to $37,999 | $452 |
| $38,000 to $43,999 | $448 |
| $44,000 to $49,999 | $457 |
| $50,000 to $74,999 | $517 |
| $75,000 to $99,999 | $571 |
| $100,000 and over | $857 |
What factors affect the cost of condo insurance?
The cost of your condo insurance policy is based on several factors, such as the state you live in, the amount of coverage you buy and your history of claims.
Where you live
The state you live in plays a big role in the cost of HO-6 insurance. You’ll pay a lot less than the U.S. average of $531 a year in some states (Wisconsin, Utah, and others), but pay more in other states (Florida, Texas, etc.).
The wide cost differences are due to the local cost of living and the likelihood of natural disasters, as well as other factors.
Your coverage limits
Your condo insurance policy’s coverage limits, or the amount of coverage you buy, determines what you pay, too. The higher your coverage limits, the higher your premium will be.
However, you can’t always pick the lowest possible coverage limit, especially if you have a mortgage. You’ll usually want — and sometimes be required — to get enough insurance to repair your unit and belongings if they’re damaged, destroyed or stolen.
Your insurance and claims history
If you’ve filed multiple insurance claims in the past, you’re likely to pay more for condo insurance than if you’d never filed a claim.
Similarly, if you don’t have an insurance history at all, you might have to pay a higher premium for an HO-6 policy than you would otherwise.
How can I save money on condo insurance?
Discounts and a higher deductible could save you money if you stay with your current insurance company.
Getting quotes from other companies and comparing them to your current one can also get you a better deal.
Ask about discounts
You may qualify for discounts you don’t know about, so be sure to look for them. If you need to, ask an agent.
Raise your deductible
Raising your deductible will lower your premium. But that said, don’t raise your deductible above what you can afford to spend if you need to file a claim. The lower premium payment won’t matter if you can’t afford your deductible.
Compare companies
It’s a good idea to shop around and compare quotes from several insurers, whether you’re buying condo insurance or some other type.
Get condo insurance quotes from at least three companies and then compare them to see which offers the cheapest rate for the coverage you need.
How much condo insurance do I need?
The master insurance policy of your homeowners association (HOA) is the main factor for how much condo insurance you need to buy.
Your HOA’s master policy may cover parts of your unit, along with your building’s shared spaces or areas (such as the roof, hallways or pools).
Beyond that, you’ll want to buy enough to protect your belongings and assets.
The different types of HOA master insurance policies include:
Bare walls
This type of HOA master policy only covers only your condominium’s common or shared areas. It doesn’t include anything inside the bare walls of your unit. If your HOA has this kind of policy, look for “walls-in” condo insurance to protect your unit and belongings.
Single entity
Single-entity master policies cover the original fixtures and appliances of your condo unit, as well as the property’s common spaces. It won’t cover upgrades or improvements, though.
All-in
An all-in master insurance policy covers everything a single-entity policy covers, but it also includes upgrades or improvements. If your HOA or condo association has an all-in master policy, you really only need to cover your belongings.
Methodology
Rates included in this article come from the National Association of Insurance Commissioners’
Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and
Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2021.
Other frequently asked questions
HOA insurance is insurance your condo or homeowners association has to protect the structure of your building and the community’s or property’s shared areas.
Depending on the kind of HOA insurance your association has, it may or may not cover some of the interior of your condo unit as well.
HOA insurance covers both the exterior structure of your condo building, as well as the property’s common spaces like parking lots, garages, staircases, recreational areas and more.
HO6 insurance covers the interior of your condo unit, including your belongings.
Some HOA policies also cover the interior fixtures and appliances of individual condo units, but some don’t. If yours doesn’t, then an HO6 policy should take care of them.
HO-6 or condo insurance is a form of homeowners insurance.
However, a standard homeowners insurance policy — called an HO-3 — generally covers the exterior and interior of the home, plus other structures like garages, sheds and fences. An HO-3 usually even covers trees and shrubs on your property.
This isn’t always the case for an HO-6.
If you have a mortgage, your lender will likely insist that you buy condo insurance to protect your unit. Your homeowners or condo association may also require certain coverage types or limits.
Condo insurance covers water damage, but usually only if it isn’t caused by flooding, sewer backup, neglect or normal wear and tear.
Yes, condo insurance covers appliances if a covered risk (like fire or lightning, for example) damages or destroys them. It won’t cover appliances that stop working due to neglect or normal wear and tear.