The average cost of condo insurance, also known as ho-6 insurance, is $429 per year in all 50 states. however, the average cost of this type of policy varies greatly depending on where you live and the amount of coverage you need.
Condominium insurance is a type of policy that covers damage and repair costs to a condominium. In addition, HO-6 policies protect against theft of personal items as well as liability costs if a guest is injured on the property. Given the financial protection that condo insurance provides, mortgage lenders sometimes require borrowers to purchase it.
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average cost of condo insurance
The average cost of condo insurance is $429 per year, but it varies widely by state. According to data from the National Association of Insurance Commissioners (NAIC), the cost difference between the most expensive and cheapest states for condo insurance is $695 per year.
The table below shows the average annual and monthly condo insurance rates by state, along with the difference compared to the national average. For example, California has an average condo insurance rate of $535 per year, which is 25% higher than the national average.
states with the lowest average cost of condo insurance
The five states with the cheapest average condo insurance quotes have rates that are at least 28% lower than the US average. Some of the cheapest states for condo insurance are among the least populated in the country, including South Dakota.
Three of the five states are located in the Midwest. other Midwestern states are also among the cheapest. For example, the average cost of condo insurance in Wisconsin and Minnesota is $280 and $312, respectively.
states with the highest average cost of condo insurance
The three states with the most expensive ho-6 condo insurance rates rank as some of the states with the most hurricanes.
condo insurance in florida is more expensive than a ho-6 policy in the second most expensive state, texas, by a margin of $174 per year. The reason Florida condo owners tend to pay higher premiums on condo insurance compared to other states may be explained by the prevalence of hurricanes in the area. That’s because an HO-6 policy covers the structural components of a condo unit, including the walls, which can be damaged in the high winds caused by hurricanes.
how much does condo insurance cost per coverage limit?
While the average cost of condo insurance varies by region, another big factor in determining how much you’ll pay is how much home coverage you’d like to purchase. In general, the higher your coverage limit, the higher your average condo insurance rate.
For example, the average condo insurance rate for a coverage limit of $75,000 to $99,000 is $534 per year, which is $161 more than the rate for a coverage limit of $13,999 or less.
what does condo insurance cover?
Condominium insurance has four main types of coverage: building property coverage, personal property coverage, liability coverage, and loss of use coverage. Policies may also include a fifth coverage feature called loss assessment coverage, which typically comes at an additional cost.
However, if your master condo association policy already covers some of these areas, you may not necessarily need all of the protection available in more comprehensive condo insurance policies.
Building Property Coverage: This protects you financially from damage to the interior of your condominium unit as a result of a covered event, such as fire or wind damage. up to the limits of your policy, it will cover damage to your floors, walls, tiles, cabinets, and other permanent fixtures in your condo.
Personal Property Coverage: Personal property coverage protects your belongings that are not fixtures in your home. this includes clothing, furniture, portable appliances, and other possessions that are not attached to your unit. As with building property coverage, you will only be able to make a personal property claim if the episode is a covered event, and coverage will only extend up to your policy limits.
Liability Coverage: Condominium liability coverage provides financial protection for you and your family in the event you are legally responsible for bodily injury or property damage. Liability protection is a key part of a condo insurance policy, as unforeseen accidents could leave you stranded for thousands of dollars in legal fees. a typical condo insurance policy covers $100,000 in damages.
loss of use coverage: This feature, also called additional living expenses coverage, will pay you for increased living expenses associated with living out of your condo if it becomes uninhabitable due to a covered event. For example, if your monthly bills go up because you’re paying to live in a hotel, your condo insurance company will cover those expenses up to your policy limits.
loss assessment coverage: Condominium associations may charge individual condo owners for costs related to common areas in a condominium complex, such as damage to the exterior of the building or medical bills for a guest’s injury in a communal area. loss assessment coverage will cover these association fees, up to your policy limits.
Depending on the main condo association policy, some of the property coverages offered in individual condo insurance policies may be redundant. A master policy is an insurance policy purchased by the condo association and the cost is shared by the condo owners. There are generally three types of master condo insurance policies: bare wall coverage, single entity coverage, and comprehensive coverage.
Bare Wall Coverage – This is the most basic type of primary insurance policy. it only covers the structure of your condominium building together with the property located in common areas; nothing within your condo is covered by these policies. If your building has bare wall coverage, you’ll need to have both building property and personal property coverage on your condo insurance policy to fully cover your condo and its contents.
Single Entity Coverage: Also called original specification policies, these policies expand bare wall coverage by including protection for property built into a condominium, such as floors, walls, and fixed appliances. any improvements or remodeling of the unit, however, are not covered by a single entity policy. if your building has coverage from a single entity, you’ll still need personal property coverage, and if you’ve made extensive improvements to your condo, you’ll also need building property coverage.
full coverage: This is the most comprehensive type of master insurance policy, as it covers all properties that are part of the condominium building structure, including improvements and additions to your condominium . Under this policy, all fixed assets within your condo, including the walls, floors, and appliances, are covered. If you have this type of master policy and want financial protection for all your belongings, you’ll only need to purchase condo insurance that covers personal property damage, which means you’ll find cheaper rates for your condo insurance policy than those they buy. plans with building ownership coverage.
valuepenguin compiled condo insurance rates from the naic’s most recent condo insurance report. The average cost of ho-6 policies was calculated both at the state level and by insurance coverage limits ranging from $13,999 and up. The national average was calculated by taking the average condo insurance rates in the 50 states and the District of Columbia.
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