How a lot does condominium insurance price? (2021)

How much is home insurance for a condominium?

The average condominium policy in the United States is $ 506, but costs vary based on the amount of coverage required, the structure of the building, and the location of the condominium.

Even if you may only own one unit in a condo building, you will need condo insurance. Also called HO-6 guideline, the cost is usually less than the standard price Homeowner insurance.

However, you must be insured for as long as you live there, especially if you have a mortgage on the property – the Lender will require it.

So how much does condominium insurance cost? Here is what you can expect.

Average condominium insurance cost by state

Nationwide, the average premium for HO-6 insurance for condominiums is $ 506, according to the National Association of Insurance Commissioners.

Utah has the cheapest condominium insurance with an average condominium insurance premium of $ 269 per year and is the most expensive Florida, at $ 964.

State Average annual premium
Alabama $ 541
Alaska $ 396
Arizona $ 400
Arkansas $ 539
California $ 535
Colorado $ 417
Connecticut $ 399
Delaware $ 431
District of Columbia $ 369
Florida $ 964
Georgia $ 493
Hawaii $ 310
Idaho $ 420
Illinois $ 398
Indiana $ 354
Iowa $ 295
Kansas $ 439
Kentucky $ 390
Louisiana $ 748
Maine $ 342
Maryland $ 310
Massachusetts $ 444
Michigan $ 369
Minnesota $ 312
Mississippi $ 600
Missouri $ 416
Montana $ 382
Nebraska $ 355
Nevada $ 424
New Hampshire $ 332
New Jersey $ 450
New Mexico $ 397
new York $ 553
North Carolina $ 456
North Dakota $ 320
Ohio $ 319
Oklahoma $ 631
Oregon $ 364
Pennsylvania $ 385
Rhode Island $ 500
South carolina $ 500
South Dakota $ 307
Tennessee $ 473
Texas $ 790
Utah $ 269
Vermont $ 345
Virginia $ 352
Washington $ 374
West Virginia $ 313
Wisconsin $ 280
Wyoming $ 379

Why Are Condos So Low In Some States?

Some states have cheap home insurance Bonuses. The difference in costs is partly due to the risks in the area.

For example, Florida is more prone to many more environmental hazards like hurricanes than many other states, so the premiums there are much higher than that National average.

Utah has the lowest average cost at $ 269. Many other states have premiums below that National average, such as Wisconsin ($ 280), West Virginia ($ 313), and Ohio ($ 319).

That insurance companyThe risk of paying off on a claim in these areas is much lower than in areas like Florida, new York, and Mississippi – all of which have higher premiums.

The role of the Master Policy In Condominium prices

ON Master insurance policy, or HOA Master Policy, covers Property damage to the building and Common areas (Corridors, lounges, sidewalks and elevators).

It is managed by the Condominium Club or Homeowners Association and is typically one of three types:

  • Covering bare walls: As the name suggests, it is a barebone cover. It only includes that building ground, Structure and Common areas. Your Condominium, including your floors and walls, is your responsibility to insure whatever may increase your condominium insurance premiums.
  • Coverage of individual entities: This is a step up from bare walls cover. It protects the structure, including the floors and walls.
  • All-in coverage: This is the most complete protection. It contains everything you can find in bare walls and Sole proprietorship coverage, as well as the original fittings, installations and devices in your device. All-in coverage would mean you would need the least amount of individual insurance.

Since a Master insurance policy may have some coverage of that Condominium owners& # 39; s indoor unit that Master Policy has a major impact on how much you pay.

As Lots of condominium insurance coverage Do you need?

As lots of condo insurance coverage you need depends on the Master guideline of the housing association and your personal preferences.

For example if your Master Policy only covers bare walls, you will need the most Coverage from your individual policy to ensure you are protected.

If your Master Policy covers more than the bare walls, you can usually reduce the apartment size and focus on other coverings such as personal possessions or Personal liability protection.

Personal property protection

When it comes to Personal property protection, you can control how much protection you buy for your belongings.

To know how much coverage you need, think about everything you own in the home and what it would cost to replace it if you lost it all in a fire or other disaster.

Note some guidelines Coverage Limits on personal property Expectations. More expensive items such as jewelry or art objects may be required additional coverage. Your insurer can offer to increase the coverage amount as a note or driver.

Liability insurance

Even if you live in a condo, you can be held liable if someone is injured on your property.

Your Master Policy could cover the incident if the injury was in one Common room. Still, you might be on the hook for Medical bills, medical payments, and Legal fees if the accident or injury occurred in your device.

When you have a large fortune, think about the best ways to protect yourself. Most policies cover up to $ 500,000. If your net worth exceeds this amount, you might want to Get an umbrella policy to raise yours Liability insurance.

Loss of use protection

Loss of benefit can pay additional living expenses if your condominium is uninhabitable after an insured loss.

For example, if you cannot live in your condominium after a fire ravaged the building, Loss of benefit you can pay to live elsewhere while your condo is being repaired. It can also cover food and other living expenses you incur during the eviction.

What factors determine the cost of condominium insurance?

In addition to Master Policy, other factors can reduce the cost of your Home insurance:

  • Location of the condominium: If there is a high risk of natural disasters, such as a hurricane or other environmental damage, the premiums can be higher than if you live in an area with very low environmental risks.
  • Age of the condominium: The older the building, the more likely it is that it has outdated electrical wiring, plumbing, and other household systems. Newer buildings usually have more modern technology and structures, which reduces the likelihood of an insured event.
  • Amount of coverage: When you finance your condominium, so does your mortgage Lender may require you to have certain insurance coverage. At the very least, you want enough cover to repair or rebuild your unit if it is destroyed by danger.
  • Credit history: Some Insurance companies Use your credit rating when determining rates. If you have bad credit, your premiums may be higher because of that insurer sees you as a higher risk.
  • Deductible: Lower Deductibles usually increase the cost of the policy. So the higher the Deductible The lower your premiums can be. Choose a Deductible You can afford – if you had to make a claim and couldn't pay the amount Deductible, you would be in a worse situation.
  • Discounts: You may be eligible for discounts on your condominium insurance. For example, if you bundle your insurance with other policies, such as car insurance, you might get a bundled discount. You can also get discounts if you have no claims or are loyal to a particular one insurance company for many years.

frequently asked Questions

What does condominium insurance cover?

Your condominium insurance coverage may vary depending on the framework policy established by the association. If the club only covers bare walls, then your condominium insurance should cover the structure of your condominium, including all built-in features, your personal effects and any liability. If your master policy is more comprehensive, offering liability insurance and more home coverage, you may need minimal condominium coverage.

How can I reduce the cost of my condominium insurance?

You cannot control many of the factors that determine the cost of your condominium insurance, but there are ways to keep the premium down. A higher deductible is one option, but make sure you can afford it in case you suffer a disaster. You can also look for discounts for bundled insurance and loyalty discounts, or shop around to compare prices.

Will my condominium insurance premiums increase if I have a claim?

Condominium insurance premiums tend to go up when you make a claim. The amount depends on the type of damage, the amount of damage, your place of residence and your personal claims history.

Can a higher credit score help me save money on condo insurance?

When you have a higher credit score, you are less of a risk in the eyes of the insurance company. This may mean lower premiums, but your rates will also depend on other factors, including where you live and the coverage you need for home and personal property.

Are you Paying Too Much for Condominium Insurance?

Your Condominium Insurance Prices may differ from one Housing insurance company to the next. If you are looking for a new condominium or if it has been at least a year since your last policy was taken out, you could be overpaying.

Look around to find the best Housing insurance offers– and make sure you understand what the Master Policy Covers so you get the protection you need.

Compare and save today.

Updated July 30, 2021

Amy is a content marketing writer specializing in personal finance and technology. With her legal background, she has the talent to turn complex topics into easily understandable content. When she's not writing, she enjoys reading and playing board games with her family. Please visit amybeardsley.com for more information.

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