Best condo insurance companies

Buying a condominium is a little different than owning a home. You’ll likely have a monthly homeowners association (HOA) fee that covers maintenance and insurance for shared areas such as hallways and entrances. Although the HOA fee covers master insurance for the common spaces, you’ll also need the best condo insurance possible for your “four walls” and contents. While a homeowners insurance policy includes coverage for everything you own, including the interior, exterior, sheds, carports, fences and other structures on your property, condo insurance providers offer coverage for the unit itself. 

The following five best condo insurance companies were selected based on rates, customer satisfaction ratings and policy offerings. To make the condo insurance comparison easy, the following carriers were assigned an Insurance.com score based on the criteria mentioned. We found State Farm to offer the best HO6 insurance overall, although other carriers had cheaper rates or more options.

Best condo insurance companies for 2021

Five companies earned an Insurance.com score of 4 out of 5 to make the best condo insurance companies list:

• State Farm: Best overall
• Country Financial: Cheapest rates
• American Family: Best customer satisfaction
• Auto-Owners: Best HO6 insurance for claims
• Nationwide: Best for coverage options and discounts

State Farm: Best overall

Pros:

• Over 19,000 agents and offices
• Award-winning mobile app
• Largest variety of condo insurance options
• Free Ting device that monitors for electrical fires

Cons:

• Special policy limits for the property including cash, firearms, and rugs
• Limited discounts

State Farm is the largest insurance company in the country and the best condo insurance overall due to an average low rate of $531 per year, number of coverage options, and overall customer satisfaction. If you’d like a carrier with a local presence, State Farm has over 19,000 offices and agents available nationwide.

Although personal service from your neighborhood agent is a big selling point, State Farm’s website and mobile app are also pretty useful, making it easy to file and track a claim directly from your phone or through the State Farm website.

Condo insurance options/add-ons:

• Limited replacement cost
• Depreciated loss
• Refrigerated products
• Fire department service charge coverage up to $500
• Counterfeit money and forgery expenses
• First aid expenses
• Debris removal
• Tree/shrub protection
• Volcanic action
• Absentee ownership (for owners who rent their condo)
• Additional living expenses
• Inflation
• Fair rental value
• Damage from collapse
• Locksmith
• Temporary repairs
• Damage to other properties

Discounts:

• Multiline
• Home alert (burglary, fire and smoke alarms)
• Automatic sprinklers

Country Financial: Cheapest rates

Pros:

• Cheapest condo insurance
• Full service, providing insurance and financial services
• Low customer complaints

Cons:

• No mobile app for condo insurance
• Only available in 19 states

First-time condo owners and buyers on a strict budget may be most focused on finding the cheapest condo insurance available. Country Financial’s rates were the lowest of all the carriers analyzed at $328 per year on average. You can opt for a basic HO-6 policy for an average of $27 per month or choose the Premier package that adds coverage for paint spills, countertop burns, and power surge damage.

Condo insurance options/add-ons:

• Replacement cost
• In-home business
• Recreational motor vehicles
• Watercraft
• Rental dwelling
• Identity theft
• Earthquake damage
• Sump pump failure/sewer or drain back-up
• Condo association loss assessments
• Damage from underground mine collapse

Discounts:

• Multi-policy

American Family: Best customer satisfaction

Pros:

• Full-featured mobile app includes claims filing
• Free emergency water removal service
• Highly-rated by customers
• Wide range of discounts

Cons:

• Limited to coverage in 19 states

If knowing that your insurance company is there when you need it most is a top priority for you, American Family is a good candidate. It scores above average for customer satisfaction in J.D. Power’s Property Claims Satisfaction Study, with an 890 out of 1,000. American Family also has one of the best condo insurance California ratings when it comes to complaints, ranking as seventh-lowest for complaints out of the 50 largest property insurance carriers in the state.

There are plenty of ways to get help from an agent or representative. Live chat is available from 8 a.m. CST to 8 p.m. daily. AmFam’s hotline is available 24/7. In addition, there are 3,000 agents available in the 19 states served.

Condo insurance options/add-ons:

• Sump pump/water backup
• Hidden water damage
• Personal property endorsement for higher value items
• Home daycare
• Home business
• Personal injury protection 

Discounts:

• Multi-policy
• Diminishing deductible
• Smart home devices
• Claims-free
• Autopay
• Pay in full
• Paperless discounts
• Policyholder age
• Loyal customer
• Online billing

Auto-Owners: Best HO6 insurance for claims

Pros:

• Highest customer rating for the claims process
• Plenty of policy discounts and addons
• Claims offices in all 26 states Auto-Owners operates in
• Your condo insurance policy is serviced by an independent agent

Cons:

• No online quote tool
• Mobile apps could use improvement

Although condo insurance is something you hopefully never need to use, it’s important to choose a carrier that can handle your loss as quickly — and fairly — as possible. J.D. Power’s Property Claims Satisfaction Study is a good point of reference for how an insurance company is doing because it consists of policyholder reviews. Auto-Owners insurance ranks second in best condominium insurance companies when it comes to the claims process, with a score of 900 out of 1,000.

The carrier recommends you file a claim with your independent agent. If it’s after hours, you can call 1-888-252-4626. Unlike the majority of condominium association insurance companies, Auto-Owners is consistently expanding its presence, with 100 current claim offices in 26 states, to meet your needs more efficiently.

Condo insurance options/add-ons:

• Sump pump/water backup
• Condo-Owners Plus Endorsement bundles coverage including refrigerated products, appliance leaks and a glass deductible waiver
• Personal property endorsement for higher value items
• Replacement cost
• Ordinance or law coverage
• Identity theft expense

Discounts:

• Multi-policy
• Paperless
• On-time payments
• Protective devices
• Advance quote
• Paid-in-full
• Favorable loss history
• Water shutoff

Nationwide: Best for coverage options and discounts

Pros:

• High customer satisfaction ratings
• Agents in 49 states
• Basic condo insurance includes extra coverages
• Free annual On Your Side Review available

Cons:

• Mobile app better geared for auto insurance management

Nationwide is one of the best condo insurance companies for several reasons — its coverage is the second-cheapest at $413 per year and the carrier offers condo owners plenty of ways to save and customize coverage. The standard condo insurance package has more coverages than other carriers, including credit card coverage, condo loss assessments, and building additions/alterations. Condo owners who recently purchased their unit and/or live behind a gate could save the most on coverage.

Condo insurance options/add-ons:

• ID theft
• Valuables Plus endorsement for jewelry, antiques and other high-value items
• Water backup
• Earthquake (with separate deductible)

Discounts:

• Multi-policy
• Protective device
• Claims-free
• Gated community
• Recently-purchased home (last 12 months)

Compare best condo insurance companies

The five carriers that make up the best condo insurance companies list each have their strengths and weaknesses. Here is how they compare:

*Country Financial doesn’t rank in the property claims study but is the #1 carrier in the customer satisfaction study.

More condo insurance comparisons:

• State Farm and Auto-Owners condo insurance are best for owners who prefer to do business through a local agent. 
• Country Financial and Nationwide offer the cheapest condo insurance rates on average.
• For the best online/mobile app experience, consider State Farm or American Family.
• Country Financial condo insurance policies offer higher general limits.
• Nationwide bundles a handful of extra coverages including credit card and condo loss assessments in its standard HO-6.
• Nationwide and State Farm provide condo insurance in all states.

Best condo insurance by state

The following states are among the largest holders of condo insurance. Average premiums may vary from one state to another based on weather hazards in the region and other factors.

How much does condo insurance cost?

Insurance.com found that the average cost of condo insurance is $625 per year for $60,000 with a $1,000 deductible and $300,000 in liability protection. However, rates can be higher or lower, based on the carrier you choose and the state you live in.

What you should consider before buying condo insurance

Mortgage lenders will typically require you to have condo insurance coverage as long as you’re paying off the loan. However, you don’t want to end up paying for more coverage than you need.

Start by reviewing what’s covered in your homeowners association's master policy. Your HOA insurance policy likely caps out at a certain amount and you’ll be responsible for any loss over the limit. In addition, master policies only cover a condo’s exterior areas. If you want financial protection for overages not covered by a master policy, or to cover theft or loss from covered perils such as a fire, you’ll need your own condo insurance policy.

Knowing how much condo insurance you’ll need depends on the value of your items. Do a rough tally of your personal property, as well as the cost of the materials and improvements. For example, take into account the quality and cost of your kitchen cabinets, type of flooring and any upgrades to your bathrooms. In addition, most policies set limits for items valuable personal property, such as high-value jewelry, electronics and firearms. You may want to add a scheduled personal property endorsement to cover special items worth over $1,000.

As with all types of insurance, shop around for the best value. You may find that the same limit, or the identical amount of coverage, could vary in price significantly from one carrier to another. Get insurance quotes from at least three insurance providers. When shopping for a condo insurance policy, don’t forget to take advantage of carrier discounts such as bundling condo and auto insurance, or adding a home security system for extra savings.

Frequently asked questions

What is covered under condominium insurance?

Similar to a homeowners insurance policy, standard condo insurance coverage provides you with several types of coverage:

• Personal belongings or personal property coverage: Your condo’s contents, so coverage for your personal belongings
• Interior damage: Damages to systems and building materials such as plumbing, electrical and walls
• Homeowners association's master policy coverage limits: Pays for damages over the HOA’s master policy limit
• Loss of use coverage or additional living expenses: Covers housing and living expenses if you’re forced to temporarily move out
• Personal liability: Liability coverage provides financial protection in case a guest is injured on your property

Who has the best condo insurance?

There are several best condo insurance companies. State Farm is the best overall. However, Nationwide offers plenty of coverage options and lower average rates than State Farm.

Who has the cheapest condo insurance?

Our research found that Country Financial has the cheapest condo insurance. Rates average $328 per year for coverage. You can save money on condo insurance policies by getting an online quote from at least three companies, and then comparing them to see which company offers the coverage you need for your particular profile at the lowest price.

Do I need homeowners insurance for a condo?

Home lenders will typically require you to have insurance coverage for your condo. While a homeowners insurance policy is similar, condo insurance is designed specifically for condo owners. Nearly all homeowners insurance companies also offer condo insurance policies.

How much condominium insurance coverage do I need?

How much coverage you need depends on the value of your property and unit, among other things. If your master policy, like most, is "bare walls," you'll need to cover rebuilding costs for your dwelling. If you have a recent home appraisal, the standard Form 1004 has an estimated value using the "cost approach," which can give you an idea of what it would cost to rebuild your unit. An agent familiar with local building costs can give you a per square foot figure, or you could have a contractor provide an estimate (rebuilding appraisals cost about $300).

Next, up on you condo insurance policy is liability coverage. You'll choose the amount of personal liability coverage so you want to be sure your assets are protected should you be responsible for a guest's injuries or property damage, or you're sued. You can base the amount of liability coverage on your net worth, total assets, total assets plus five times income -- and add an umbrella policy if needed.

Add coverage equal to your master policy deductible if the standard HO6 doesn't cover it. Add loss assessment coverage -- experts recommend $50,000 worth.

Take an inventory of your personal property. If you're lazy, use the square footage method -- assume $40,000 of belongings for the first 1,000 square feet, and add $10 for every additional square foot. Add coverage for excluded or high-value possessions. Remember this coverage is cheap, so don't skimp.

Add earthquake, flood insurance if you live in an area prone to natural disasters, hurricanes, tornadoes and the like. You can also add sewer backup coverage if you don't want to assume the risk yourself.