Finding the Best Condo Insurance Quote and What You Need to Know
The cost of your condo insurance is dependent on numerous factors, including the amount of property coverage you choose to purchase. Insurance providers can accurately calculate the cost of insurance once you have provided them with all of your coverage requirements. Most standard condo insurance policies include coverage for your personal liability expenses, medical payments for guests injured in your condo (regardless of if you are responsible), and loss of use coverage for additional living expenses incurred if your condo is made uninhabitable. Although most condo insurers offer comparable coverage, this does not ensure you will get the same rates from each company. Some companies offer cheaper prices while others may offer valuable additional features, such as debris removal, identity theft coverage, or reimbursement for refrigerated items spoiled due to loss of power or machine failure. These factors can cause costs to vary considerably from insurer to insurer. It can be helpful to get information on policy pricing along with coverage levels from a host of insurance providers and compare them in order to choose a plan that is best suited for you and your needs. Compare price and coverage by considering important factors such as your condo's location and features unique to your condo. Many insurance providers offer an interactive online quote tool on their website that can be used to estimate your condo insurance premium. These tools often take in information about desired coverage, home features, and location, so it's best to be ready with all of your condo's information. If this feature is unavailable, contact one of the company's agents via phone or email to get the best quote for your condo insurance. Discounts on insurance may also be applied through methods such as bundling. This involves packaging multiple policies together, such as auto insurance and condo insurance, in order to acquire a lower premium. Discounts using bundling typically range from 5% to 15%. Many consumers take advantage of these bundling discounts not only for the savings, but also because they can work with one company they're familiar with, instead of dealing with the hassle of going through the claim procedures of different companies for every policy. Other ways to reduce your insurance premiums include loyalty discounts, which are offered to long-term customers, and claims-free discounts, offered to clients who have no previous claims on their insurance. Always check with your chosen insurance provider to see what discounts may apply to you.
| Costs of Condominium | Annual Costs of Condo Insurance |
|---|---|
| $75,000 | $540.42 |
| $175,000 | $653.42 |
| $200,000 | $849.15 |
| $250,000 | $894.00 |
| $300,000 | $977.88 |
| $400,000 | $1349.67 |
What Does Condo Insurance Cover?
H0-6 policies are synonymous with condo insurance. The main difference between a condo renter or owner's HO-6 policy and regular HO-3 homeowners insurance policies is that HO-6 policies only cover the interior structure of a unit, also known as being coverage from the "walls-in". Otherwise, HO-3 and HO-6 policies are quite similar in how they cover personal property, liability, and additional living expenses. An H0-6 policy is often referred to as a "named-peril" policy, meaning that every risk that will be covered is named explicitly within the policy contract. HOA insurance policies are also "named-perils" policies, containing a list of what will be covered. These typically include perils such as fire, theft, and vandalism, and other events that can damage or cause loss to common areas, the exterior structure, and the area surrounding the condo. If a hazard occurs that is not included on the “named-perils” list, you will be financially responsible for the covering the expense of repairs or replacements required due to damages. Keep in mind that damage from certain natural disasters, such as flooding and earthquakes, along with intentional damage and nuclear hazards, aren't included on most "named-peril" lists and may require the purchase of separate coverage. However, it is possible to turn your condo insurance into an "open peril" policy by adding a Unit Owners Special Coverage A endorsement. An "open peril" policy covers damages resulting from any causes that are excluded by a standard "named-peril" policy. Perils frequently named for exclusion from coverage include flooding, earthquakes, and sinkholes. Condo insurance policies typically provide coverage under the following categories: replacement cost, actual cash value, and extended replacement cost. Replacement cost coverage is based on the cost of repairing or replacing property at equal value. Actual cash value coverage reimburses the owner for the cost of the item minus depreciation. Extended replacement cost coverage goes beyond your policy's limit to rebuild or restore your condo.
| Type of Condo Insurance Coverage | What That Coverage Protects |
|---|---|
| Building property | The condo unit itself, including walls and fixtures |
| Personal property | Furniture, electronics and other movable goods |
| Personal liability | Legal expenses from claims or lawsuits against you |
| Loss of use | Costs of lodging/transport if unit is uninhabitable |
| Loss assessment | Your portion of any losses shared out by the association |
Is Condo Insurance Required?
Many condo owners may be required to or find it necessary to purchase condo insurance despite being covered by HOA or their condo association's master policy. This is due to the many gaps in the amount of coverage provided by these policies, which may include options labeled as "all-in" or "bare walls". Personal property such as furniture and electronics is often left out of ‘all-in’ policies. 'All-in" policies typically only cover original fixtures included in your condo such as lighting fixtures, wiring, plumbing, and appliances, and exterior structures like carpet and paint. This may leave personal property, medical payment to others, loss assessment, and liability uncovered. For your financial security and peace of mind, you'll want to get coverage for some if not all, of these things. The "bare walls" policy covers even less than "all-in" policies, only covering those things that are collectively owned by all residents of a condo building, such as common areas and the condo's structures. Although it is not legally required that condo owners or renters purchase insurance for their unit, it can provide you with a sense of wellbeing to know your personal effects and any additions you have made to your unit are covered in case of unforeseen events or disasters. Knowing exactly what is and isn't covered under your condo’s master policy is an important step toward deciding what coverage options you'll want included in your condo insurance policy for the protection of both you and your belongings. Purchasing your own condo insurance offers additional padding and surety for even the most unexpected of circumstances.
Average Costs of Condo Insurance by Company
How much does condo insurance actually cost? It depends on a variety of factors, so prices can vary quite a bit between companies. Factors that affect rates include your condo's location, the amount of coverage you're looking for, and your choice of insurance provider. TrustedChoice, an independent group of insurance agents, estimated that the average rate of condo insurance policies is between $100 and $400 per year. When calculating premiums, consider your condo's location, the year it was built, the materials used in the construction of your condo, the coverage offered by your HOA or condo association, and the amount you would like to pay for your deductible. Having all of this information on hand when you're shopping for quotes is a big timesaver, and the more information you provide, the greater the chance that you will be offered discounts.
| Condo Insurance Company | Avg. Monthly Condo Insurance Costs | Avg. Annual Condo Insurance Costs |
|---|---|---|
| AAA | $61.40 | $736.80 |
| AARP | $48.50 | $582.00 |
| AIG | $118.80 | $1,425.60 |
| Allstate | $61.90 | $742.80 |
| American Family | $63.05 | $756.60 |
| Assurant | $56.35 | $676.20 |
| Erie | $43.49 | $521.87 |
| Esurance | $47.23 | $566.70 |
| Farm Bureau | $42.48 | $509.73 |
| Farmers | $70.28 | $843.30 |
| Geico | $69.27 | $831.20 |
| National General | $54.87 | $658.40 |
| The Hartford | $37.77 | $453.22 |
| Hippo | $58.50 | $702.00 |
| Lemonade | $55.60 | $667.20 |
| Liberty Mutual | $75.03 | $900.40 |
| Mercury | $72.15 | $865.80 |
| MetLife | $68.07 | $816.80 |
| Nationwide | $47.97 | $575.60 |
| Progressive | $46.63 | $559.60 |
| Safeco | $62.27 | $747.20 |
| State Farm | $78.47 | $941.60 |
| Travelers | $75.69 | $908.30 |
| USAA | $48.77 | $585.20 |
| Wawanesa | $56.33 | $676.00 |
| Wells Fargo | $76.73 | $920.80 |
When You Need Condo Insurance
There are a number of reasons you may need condo insurance to supplement your HOA or condo association's insurance. If there is damage to the interior of your unit, or you have made additions or improvements to your unit, consider purchasing a condo insurance policy for your unit. Understanding what master policy your HOA or condo association carries will help you to determine if your condo needs interior coverage. If your HOA or condo association has a “bare-walls" policy, you will be responsible for covering everything in your home with the exception of walls, floor, and ceiling. HOAs or condo associations with “all-in” policies offer more coverage that includes all the original items built into your condo such as plumbing and wiring, lighting and other fixtures, and cabinetry. However, these types of policies still do not cover your personal belongings and changes made to the unit after move-in. If the damages to your condo make the space uninhabitable, your personal insurance provider will issue payment to cover expenses needed to live elsewhere, such as hotel bills. If you have to rent another space while your home is repaired, they will cover additional costs over your usual cost of living. If damages are partially but not entirely covered under your HOA or condo association's policy, you may be asked to provide the difference in cost out of pocket. This can be a big hit to your financials. Condo owners with “loss assessment” coverage in their personal condo insurance policy will receive partial, if not total financial assistance from their insurance provider in this circumstance. Lastly, if you have been a victim of a robbery, you can file a claim with your insurance provider for damaged or stolen property. This claim would be filed through your personal property coverage, not through your HOA or condo association's master policy. Consider the risks of those events not covered by your condo's master policy and compare it with the cost of getting your own policy. Is the cost worth the benefits of the added security?
Average Cost of Condo Insurance by State
| State | Avg. Monthly Condo Insurance Costs | Avg. Annual Condo Insurance Costs |
|---|---|---|
| Alaska | $37 | $439 |
| Alabama | $38 | $608 |
| Arkansas | $39 | $582 |
| Arizona | $40 | $413 |
| California | $41 | $444 |
| Colorado | $42 | $825 |
| Connecticut | $43 | $574 |
| District of Columbia | $44 | $610 |
| Delaware | $45 | $342 |
| Florida | $46 | $800 |
| Georgia | $47 | $521 |
| Hawaii | $48 | $511 |
| Iowa | $49 | $375 |
| Idaho | $50 | $253 |
| Illinois | $51 | $469 |
| Indiana | $52 | $430 |
| Kansas | $53 | $605 |
| Kentucky | $54 | $605 |
| Louisiana | $55 | $723 |
| Massachusetts | $56 | $663 |
| Maryland | $57 | $539 |
| Maine | $58 | $364 |
| Michigan | $59 | $493 |
| Minnesota | $60 | $550 |
| Missouri | $61 | $641 |
| Mississippi | $62 | $542 |
| Montana | $63 | $595 |
| North Carolina | $64 | $472 |
| North Dakota | $65 | $595 |
| Nebraska | $66 | $806 |
| New Hampshire | $67 | $413 |
| New Jersey | $68 | $517 |
| New Mexico | $69 | $442 |
| Nevada | $70 | $634 |
| New York | $71 | $579 |
| Ohio | $72 | $392 |
| Oklahoma | $73 | $926 |
| Oregon | $74 | $256 |
| Pennsylvania | $75 | $426 |
| Rhode Island | $76 | $601 |
| South Carolina | $77 | $598 |
| South Dakota | $78 | $412 |
| Tennessee | $79 | $555 |
| Texas | $80 | $880 |
| Utah | $81 | $393 |
| Virginia | $82 | $535 |
| Vermont | $83 | $383 |
| Washington | $84 | $510 |
| Wisconsin | $85 | $396 |
| West Virginia | $86 | $484 |
| Wyoming | $87 | $545 |
Finding Out How Much Condo Insurance to Buy
Determining how much condo insurance to buy is a process that will vary from person to person, as everyone has their own unique requirements and standards for what will make them feel secure. However, there are steps that should be universal to any condo insurance purchasing process. First, assess the value of belongings in your home that would need to be repaired or replaced in case of an accident. There are many inventory apps freely available to help you with this task. Then, find out what your HOA or condo association's policy will cover and what you will need to get covered through a condo insurance company. The amount of coverage provided through your HOA or condo association's plan will determine much of what you will need. Do you fall under the “bare-wall” policy but wish to insure more than just walls, carpet, and ceiling? Do you fall under the “all-in” policy but wish to protect your personal items and liability for guests and visitors? See what other events or items are available for coverage. Finally. talk with a licensed insurance agent to find out what coverage best fits your budget and needs. Don't forget that talking with an insurance agent can do more than help you through this process; you may also be able to negotiate for discounts or better premiums based on your insurance history, the condition of your condo, and your credit rating, among other things.
