Average condo insurance costs

Condo insurance or HO6 policy is coverage that is designed specifically for condominiums. It provides protection to your unit and its belongings against theft, vandalism, water damage, fire damage and many more.

On the surface, condo insurance and traditional single-family homeowners insurance appear to be similar. As with traditional homeowners insurance, a condominium policy covers three main things.

• Dwelling coverage: This protects the building itself, including structures.
• Personal property coverage: This covers your possessions, including furniture, clothing, electronics and jewelry.
• Personal liability coverage: This protects you if someone is hurt on your property, or if you damage someone else's property or injure them away from your home.

However, it's important to understand the key differences between a homeowners policy and condominium insurance.

In this guide we'll provide condo insurance costs by ZIP code, coverage level and state, explain how H06 insurance works, as well as provide tips on how much coverage to buy.

How much does H06 condo insurance cost?

The average condo insurance cost is $625 nationwide, for $60,000 in personal property coverage, with a $1,000 deductible, and $300,000 in liability protection – the limits of a typical policy. But that’s based on just one of the eight coverage sets provided in the condo insurance calculator below. Your particular condo H06 insurance cost will depend on your coverage limits and deductible, the value of your possession, among other factors.

Average condo insurance rates by state

Below you'll see how condo insurance costs vary by state, for four coverage levels. The dwelling coverage amounts vary, but all rates have a $1,000 deductible with $300,000 in liability. The average rates are sorted least to most expensive for the common coverage of $60,000 dwelling, $1,000 deductible and $300,000 in liability.

North Dakota is the cheapest state for condo insurance with average cost of $292 per year, while Florida is the most expensive with average cost of $1,051 per year, based on Insurance.com's rate analysis.

Average condo insurance rates by company

Just like home and auto insurance, comparing condo insurance quotes from different companies can save you money on your coverage. Each insurance company is calculating the likelihood that you will file claims, or determining how much risk -- or cost -- you pose to them. They decide what you pay for coverage based on this assessment, which takes into account where you live, the materials your dwelling is made of, and other factors. That means the cost for the same policy will vary significantly among condo insurance companies. If you don't shop around, you won't know which is the most affordable.

Below you'll see how major carriers compare for the cost of condo insurance for dwelling coverage of $60,000 with a $1,000 deductible and $300,000 in liability insurance. What you pay will depend on your condo-owner profile and where you live. Not all of these companies operate in all states.

How much is condo insurance per month?

The average cost of condo insurance per month can be as low as $29 or as high as $108, depending on what state you live in, among other factors. The typical condo insurance cost per month though is around $50. You can see H06 insurance costs per month in each state in the chart below.

Here is the average cost of condo insurance per month for common coverage levels, all with $1,000 deductible and $300,000 in liability.

• $40,000 in personal property: $45 a month
• $60,000 in personal property: $52 a month
• $80,000 in personal property: $59 a month
• $100,000 in personal property: $65 a month

What does condo insurance near me cost?

To get your customized average condo insurance cost, enter your ZIP code, personal property coverage, deductible and liability amounts in the condo insurance calculator below. You'll get condo insurance estimates so you know what you can expect to pay.

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CONDO INSURANCE CALCULATOR

Average condo insurance rates in CALIFORNIA

Zip

Personal Property Coverage Covers your personal belongings, such as your furniture, electronics, clothing, artwork, etc. Choose the amount you believe would cover all of your belongings.

$40,000$60,000$80,000$100,000 $60,000

Deductible Choose the amount you want to pay out-of-pocket before insurance kicks in. This applies to your dwelling and personal belongings claims.

$1,000 $1,000

Liability Covers the medical expenses of people who are hurt while in your home or on your property, as well as damage you caused to others’ property. Also covers legal fees if you are sued by someone hurt in your home or on your property. Limits of $300,000 or $500,000 are recommended.

$100,000$300,000 $100,000

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94404 - Foster City

Personal Property Coverage $60,000, Deductible $1,000 and Liability $100,000.

AVERAGE RATE: $488

HIGHEST RATE: $865 LOWEST RATE: $247

Most & least expensive zip codes for condo insurance in California

Most Expensive

Zip Code	City	Highest Rate
90210	Beverly Hills	$769
90211	Beverly Hills	$764
90212	Beverly Hills	$764
90048	Los Angeles	$760

Least Expensive

Zip Code	City	Lowest Rate
93402	Los Osos	$411
93442	Morro Bay	$412
93407	San Luis Obispo	$413
93424	Avila Beach	$413

• Methodology ×

  Insurance.com commissioned Quadrant Information Systems to provide condo insurance rates for nearly every ZIP code in the country from up to six major insurers. The applicant profile is of a married, 35-year-old who has filed no claims in five years. Coverage includes dwelling coverage of $50,000, medical payments coverage of $5,000, contents replacement at replacement value and loss of use at 10 percent of personal property limit.

  METHODOLOGY +

How much is condo insurance in California?

California is in the middle of the pack compared to the rest of the country, in terms of condominium insurance costs. As you’ll see in the state list of condo homeowners insurance rates above, California is the twenty-second cheapest state for condo insurance.

You’ll see how major carries in California compare on condo home insurance rates, and that the cheapest condo insurance companies are USAA, Garrison, Travelers and Allstate.

The dwelling coverage amounts vary, but all rates have a $1,000 deductible with $300,000 in liability.

How much is condo insurance in Florida?

Condo insurance in Florida are the most expensive in the country, based on Insurance.com’s rate analysis. But you can still save by doing a condo insurance quote comparison. You’ll see below that condo homeowners insurance costs vary significantly among carriers.

Here are average condo insurance cost in Florida by company. The cheapest condo insurance companies in Florida among those surveyed are First Floridian, Castle Key and Heritage.

The dwelling coverage amounts vary, but all rates have a $1,000 deductible with $300,000 in liability.

3 Types of condo insurance coverages

For starters, you probably won't need as much dwelling coverage as you would if you were buying a single-family home. Your condo association's master insurance policy likely will cover the exterior of your condo, as well as hallways, elevators, pools and other common elements.

In fact, figuring out just exactly what you need to insure – and how much condo insurance you need to buy – are the biggest challenges when buying condo insurance. 

There are three major types of arrangements that might apply to your condominium:

• Bare-walls agreement. Typically, this means individual unit owners are responsible for insuring their unit from the sheetrock or wall studs in. That means covering things like walls, sinks, cabinets, appliances, flooring and wallpaper. Owners also must insure any renovations and improvements they make.
• Single entity. In this type of coverage, the condo association master insurance policy provides protection for nearly everything in the complex, including your unit and the fixtures inside it. Condo owners are only responsible for insuring their personal possessions. However, any upgrades that you make to your unit are not covered in the event of a loss.
• All-inclusive agreement. This is similar to a single entity plan, except that the condo association's master policy also covers any improvements, upgrades and additions you make in the unit. It is the most comprehensive form of coverage from the unit owner's perspective.

The condo association's rules and covenants dictate which of these arrangements applies in your condominium community. 

If you are subject to a bare-walls arrangement, you need to find the right documentation that explains what you are responsible for insuring. Powell says these documents should contain wording that "draws an imaginary line somewhere to separate the owner's unit from commonly held property," Powell says. 

The condo association's master policy will cover commonly held property, while you are responsible for insuring everything else. 

How much insurance do you need for a condo?

If your condo is subject to bare-walls rules, assigning a replacement value to the interior can be challenging, because the value of your individual condo is partially based on the common features – such as the building exterior, as well as a swimming pool and other amenities. 

The exact dollar amount of coverage you need also depends on other factors, such as:

• Construction costs in your area
• The type of materials used in your condo
• The value of your personal possessions

If you're struggling to put a dollar figure on the amount of coverage you need, talk to your insurance agent. Powell says it is always better to buy too much coverage rather than not enough.

Deductibles

Rather than cutting corners on coverage, consider taking a larger deductible, which can lower your premium costs. The deductible is what you pay toward damages when you file a claim.

Deductibles apply to the personal property coverage portion of your policy. You typically have a range of deductible amounts from which to choose.

Actual cash value versus replacement value

One typical mistake condo owners make is buying coverage that reimburses the actual cash value of their belongings instead of a policy that covers the replacement costs. Actual cash value typically means your belongings are covered for their replacement cost minus depreciation. Depreciation is the decrease in an item’s value due to its age, condition or other factors. Replacement value means your belongings are covered for the amount it would take to replace them at the time of the claim.

Loss assessment coverage

Powell's recommendation to avoid cutting corners on coverage extends to loss assessments coverage. This coverage reimburses you if the condo association charges a one-time special assessment fee to unit owners to cover costs that exceed the coverage limits of the association's master policy.

Loss assessment coverage is part of most condo policies, but typically provides just $1,000 in coverage. If this is the case with your policy, Powell urges you to purchase additional coverage. Special assessments sometimes can soar into the thousands of dollars. 

"Most people should buy $5,000 or $10,000 at a minimum," he says.

Don't skimp on liability coverage

Most people think of condo insurance as protecting their home and belongings. But condo policies also include liability coverage, which protects you if someone is injured inside your home.

Don't skimp on this coverage, because you'll be sorry you did if someone is hurt on your property, says Lori Conarton, spokesperson for the Insurance Alliance of Michigan.

"Many times it will be a minor injury," she says. "But other times, you may be sued, and liability insurance will provide coverage for you."

Typically, the minimum condo liability limit is $100,000, but that doesn't offer much protection should you end up on the wrong end of a lawsuit. Liability coverage can go as high as $500,000 – and in extreme cases, even that might not be enough.

Fortunately, there is an easy way to get even more protection. "Condo owners can also purchase an umbrella insurance policy that provides additional protection of $1 million or more for both their condo insurance and their auto insurance," Conarton says.

Buying a "bare bones" policy or even something with middling coverage to save money in the short term can be a risky move over the long haul.

"Lawsuits can be very expensive," Conarton says. She says the average judgment in slip-and-fall cases is $100,000, and the average cost to defend a liability lawsuit is $50,000. 

If somebody is severely injured or even killed, judgments could go much higher.

"Without liability insurance, the results of a lawsuit could be devastating financially to you," Conarton says.

How to get a condo insurance estimate

To get an idea of what you can expect to pay, first figure out how much condo coverage you need. Here are the steps to take to get an H06 insurance cost estimate.

Review your condo association’s master policy. This will influence how much dwelling coverage you need. You can get details on your master policy from the condo association. There are three types of master policies, as explained earlier.

• All in and all-inclusive
• Special entity
• Bare walls in and wall studs in

If you have all-inclusive coverage on your master policy, you don't need dwelling coverage.

• You just need to get personal property and liability coverage.
• Estimate the total cost of all your belongings and choose a personal property amount that matches it, at replacement value, so you’d get reimbursed for your items without depreciation.
• Liability coverage, which helps pay for legal costs if you’re sued and pays for medical bills of guests injured in your home, should have limits of at least $100,000, but $300,000 is recommended. You want enough liability coverage to ensure all of your savings and assets are protected.

If you have a bare-walls or special entity policy, in addition to the above, you need to also add dwelling coverage. This covers your cabinets, lighting, bathroom and kitchen features, rugs, laundry facilities and so on. Here are common scenarios that will help you figure out your dwelling coverage amount:

• It’s common for mortgage lenders to require a percentage of your loan as the dwelling coverage amount. So, for instance, if you’re condo loan is $300,000 and the lender requires dwelling coverage of 20%, it would be $60,000.
• You can also try multiplying the square footage of your unit by the cost to rebuild it. This can be done by researching the cost per square foot in your area or of similar units, asking appraisers or contractors. A rough calculation as an example: If you’re condo is 1,200 square feet and the national average construction cost of $125 per square foot is applied, you’d get 150,000, so you’d get $150,000 in dwelling coverage.

Review rate tables and condo insurance cost estimator calculator. Now that you have an idea of how much coverage you need, review the various rate tables on this page, which show the average cost of condo insurance by month, state and coverage level. You can also enter your ZIP code into our condo insurance cost estimator tool, which shows average rates, as well as the highest and lowest from up to six major insurance companies. These rates assume all-in master policies.

Things to consider before buying H06 insurance

If your heart is set on buying a condominium, know that your head might ache when you try to purchase insurance. Insuring a condo is often trickier than protecting a single-family home -- but don’t fret -- here we’ll explain the types of H06 insurance and what they cover, and provide tips for how much Ho6 insurance to buy. Plus, you can refer to Insurance.com’s condo insurance guide for more details.

"It can be quite confusing -- even to people in the industry," says Stuart Powell, a long-time insurance expert who teaches courses in insurance and risk management at the Walker College of Business at Appalachian State University in Boone, North Carolina. Despite the challenges, buying condo insurance can be simplified by using this check-list:

• Check your master policy to see if it's all-in, bare walls or single entity.
• Determine your liability coverage needed.
• Calculate the value of your personal property and see if you need floaters to provide additional coverage for specific items.
• Determine your dwelling coverage amount if master policy is not all-in.
• Choose replacement value or actual cash value reimbursement.
• Decide if you want flood, earthquake or sewer backup coverage.
• Check your condo documents and add extra master policy deductible and special assessment coverage if needed.
• Make a list of coverage you need and shop among competing providers. Remember to ask about discounts.

Frequently asked questions about H06 insurance