Average condo insurance costs

Condo insurance, known as an HO-6 policy in the insurance industry, is coverage that is designed specifically for condominiums. It provides protection for your unit and your belongings against theft, vandalism, water damage, fire damage, and many other risks.

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

• Building property: This covers any portion of the building itself for which you are responsible.
• Personal property: This covers your possessions, including furniture, clothing, electronics, and jewelry.
• Personal liability: This protects you from lawsuits that may result from things like injuries on your property or other negligence claims.

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

In this guide, we'll provide average condo insurance costs by ZIP code, coverage level, and state, explain how H0-6 insurance works, as well as provide tips on how much coverage to buy.

How much is condo insurance (HO-6)?

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 H0-6 insurance cost will depend on your coverage limits and deductible, and the value of your possessions, among other factors.

Is condo insurance cheaper than home insurance?

Condo insurance is cheaper than homeowners insurance. The average annual cost of home insurance is $2,305, well above the $625 average for condos. Homes are bigger than condo units and owners are responsible for the entire structure.

Average condo insurance costs by state

Below you'll see how condo insurance costs vary by state, for four coverage levels. The property coverage amounts vary, but all rates have a $1,000 deductible with $300,000 in liability.

North Dakota is the cheapest state for condo insurance with an average cost of $292 per year, while Florida is the most expensive with an average cost of $1,051 per year, based on Insurance.com's 2021 rate analysis.

Average condo insurance costs 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 takes into account where you live, your claims history, and facts about the building itself to calculate rates. Shopping around is the best way to save.

Below you'll see how several carriers’ condo insurance rates compare for property 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, so while West Bend Mutual has the cheapest condo insurance rates at $110 a year on average (that’s only about $9/month), it’s only offered in 14 states. The cheapest condo insurance company that operates in every state is Allstate at $482/year or $40/month.

Take a look at our full list below.

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 H0-6 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

SEARCH

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
93405	San Luis Obispo	$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?

The average condo insurance cost in California is a little under the national average, with an average rate of $553 for $60,000 in coverage.

Of course, rates vary by company. Take a look at rates by coverage amount for some of the biggest insurance companies in California. USAA comes in cheapest, with Garrison the cheapest option if you’re not a military family.

Rates below are quoted with a $1,000 deductible and $300,000 in liability.

How much is condo insurance in Florida?

Condo insurance in Florida is 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 the average condo insurance costs in Florida by company. The cheapest condo insurance companies in Florida among those surveyed are First Floridian, Castle Key and Heritage.

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

The three types of condo insurance coverage

There are three different types of condo insurance, and the main difference comes down to how much of the structure you need to insure. 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.

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. 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, 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.

"Ask the condo association for a clear definition of where the unit line is," Powell says. "If they can't answer the question, you might have to go to an insurance agent. And if they can't answer, you might need to go to a lawyer."

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

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 thousands of dollars.

"Most people should buy $5,000 or $10,000 at a minimum," Powell 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 H0-6 insurance cost estimate.

Review your condo association’s master policy. This will influence how much building property 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 building property 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 building property 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 building coverage amount:

• It’s common for mortgage lenders to require a percentage of your loan as the building property coverage amount. So, for instance, if you’re condo loan is $300,000 and the lender requires building property 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 and asking appraisers or contractors. A rough calculation as an example: If your 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 building property 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 H0-6 insurance

Insuring a condo is often trickier than protecting a single-family home. Knowing the types of HO-6 insurance and what they cover can help you figure out how much HO-6 insurance to buy. For more details, refer to Insurance.com’s condo insurance guide for more details.

"It can be quite confusing -- even to people in the industry," says Powell. “Despite the challenges, buying condo insurance can be simplified by using this checklist”:

• 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 building property coverage amount if the 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.

Methodology

Condo insurance rate data is provided to Insurance.com by Quadrant Data Solutions based on four possible levels of coverage for personal property: $40,000, $60,000, $80,000, and $100,000. All estimates use a $1,000 deductible and include $300,000 in liability coverage. Rates by state and for insurance companies are averages.