Average Cost of Condo Insurance 2022

The average monthly premium for condo insurance is $506, but rates vary based on a number of factors.¹

How much is condo insurance, you ask? Good question! The average American pays $506 per month, but premiums range pretty widely based on a bunch of different factors.  

Let’s dig into the average condo insurance costs in America, along with what you can expect to pay depending on where you live.

What Is Condo Insurance?

Condo insurance (also called HO-6 insurance) provides an extra layer of coverage on top of your homeowners association (HOA) insurance. It protects the interior structure of your condo, including your personal belongings. It also gives you liability protection if someone gets injured while on your property.

Condo insurance is a type of property insurance like homeowners insurance or renters insurance. It’s not required by law but most mortgage lenders and some HOAs require it.

How Much Does Condo Insurance Cost?

The average annual premium in America is $506—or $42 per month.² But the cost of condo insurance ranges pretty drastically. Rates are based on where you live, the value and age of your condo, your deductible, coverage amounts, and things like your age and credit history. Obviously, the more coverage you need, the more you’ll pay. And the lower your deductible—the amount you pay before your insurer starts chipping in—the higher your premium.

Average Cost of Condo Insurance by State

To get a better idea of what you might be paying, here’s a look at the average cost of condo insurance by state. Areas that have more extreme weather will typically have higher insurance rates.

State	Cost of Average Yearly Premium
Alabama	$541
Alaska	$396
Arizona	$400
Arkansas	$539
California	$535
Colorado	$417
Connecticut	$399
Delaware	$431
Florida	$964
Georgia	$493
Hawaii	$310
Idaho	$420
Illinois	$398
Indiana	$354
Iowa	$295
Kansas	$439
Kentucky	$390
Louisiana	$748
Maine	$342
Maryland	$310
Massachusetts	$444
Michigan	$369
Minnesota	$312
Mississippi	$600
Missouri	$416
Montana	$382
Nebraska	$355
Nevada	$424
New Hampshire	$332
New Jersey	$450
New Mexico	$397
New York	$553
North Carolina	$456
North Dakota	$320
Ohio	$319
Oklahoma	$631
Oregon	$364
Pennsylvania	$385
Rhode Island	$500
South Carolina	$500
South Dakota	$307
Tennessee	$473
Texas	$790
Utah	$269
Vermont	$345
Virginia	$352
Washington	$374
Washington, D.C.	$369
West Virginia	$313
Wisconsin	$280
Wyoming	$3793

States With Lowest Average Condo Insurance Cost 

If you live in any of these five states below, you’re in luck! You can expect to pay some of the lowest rates in the country for condo insurance. This is partly due to these states being less populated than other parts of America. Generally, states with higher population density see pricier insurance rates because of increased property values in larger cities.

Utah	$269
Wisconsin	$280
Iowa	$295
South Dakota	$307
Maryland and Hawaii	$310

States With Highest Average Condo Insurance Cost 

Bad news. If you live in any of these five states, you’ll pay more for condo insurance. Florida is by far the most expensive, followed by Texas and Louisiana. This is partly due to the number of hurricanes these coastal states get.

Florida	$964
Texas	$790
Louisiana	$748
Oklahoma	$631
Mississippi	$600

Condo Insurance by Coverage Limit 

Besides where you live, your insurance premium is also based on your coverage limit. If you need a higher amount of coverage, you’ll pay more. Here’s a look at the average premiums nationwide based on amount of coverage.

Coverage Limit	Annual Premium	Monthly Premium
$13,999 and under	$373	$31
$14,000 to $19,999	$366	$30
$20,000 to $25,999	$445	$37
$26,000 to $31,999	$407	$34
$32,000 to $37,999	$403	$34
$38,000 to $43,999	$434	$36
$44,000 to $49,999	$413	$34
$50,000 to $74,999	$473	$39
$75,000 to $99,999	$534	$45
$100,000 and up	$857	$71
National Average	$506	$42

What Determines the Cost of Condo Insurance?

Again, how much you’ll pay is based on a few factors. While each insurance company keeps their exact formulas for setting rates a closely guarded secret, we do know a lot about how condo insurance prices are determined.

Location

First, we’ve all heard location, location, location. Location does matter. Where you live partially decides how much you’ll pay for condo insurance. For instance, if you own a beach condo in Florida (nice!), you’ll pay more for insurance because of the higher risk involved with a hurricane-prone area. (And while we’re talking hurricanes, you should check out hurricane insurance and flood insurance. Standard condo insurance policies won’t cover these kinds of disasters.)

Age and Credit History

Your age and credit history are also factored in. (However, don’t go racking up credit cards just to pay them off and build up your credit score.)

Value and Age of Your Condo

Insurance companies also take into account how much your condo is worth and how old it is. If it’s an older condo, expect to pay more.

Deductible and Coverage Amounts

Like a seesaw, your monthly premium will go up or down based on your deductible. A higher deductible will mean a lower premium, and vice versa. And obviously the more coverage you need, the more you’ll pay per month.

What Does Condo Insurance Cover?

Now, you might be wondering, What kind of bang for my buck am I really getting with condo insurance? What does it cover?

Protect your home and your budget with the right coverage!

First, condo insurance is a great defensive strategy. If you own a condo, you need condo insurance. It protects your finances from natural disasters and other unfortunate events that could potentially set you back financially.

Here’s what a standard condo insurance policy will cover:

• Building property (or dwelling) coverage pays to repair structural damage to your condo’s interior (walls, flooring, etc.) and fixtures
• Personal belongings like clothes, electronics and furniture, up to certain limits
• Personal liability pays for legal and medical expenses if someone is injured on your property or your dog bites someone. Most policies include $100,000 for liability costs.
• Additional living expenses (also called “loss of use”) if you can’t live in your condo while it’s being repaired
• Loss assessment coverage kicks in if your HOA master insurance policy isn’t enough to cover a major event. For example, sometimes an HOA will require each condo owner to pay for part of the repair or rebuild costs. Loss assessment is sometimes an add-on to a standard policy.

What Does Your HOA Insurance Cover?

On top of your personal condo insurance, your HOA will cover certain things under a master insurance policy. This includes the exterior of your condo, shared spaces like a swimming pool or lobby, and liability for incidents that occur in these common areas. However, HOA insurance does not cover the interior of your condo or your stuff. That’s why you need your own separate policy.

There are three types of HOA insurance:

Bare Walls Coverage

The least amount of coverage, bare walls protects the structure of your condo building, most fixtures and furnishings in common areas, and any property owned by the HOA.

Single Entity Coverage

Sometimes called “walls-in” or “studs-in” coverage, this provides the same level of coverage as bare walls but covers permanent fixtures within individual units (things outside the walls like cabinets).

All-In Coverage

This is the most comprehensive level of HOA insurance. It covers the entire interior of your condo as well as renovations and improvements you’ve made. (If your HOA is “all-in,” you probably won’t need dwelling coverage.)

How Much Condo Insurance Do You Need?

Now that we’ve answered, How much is condo insurance?—let’s take a look at how much condo insurance you need.

Your condo insurance needs will depend on your specific situation, including how much is covered by your HOA insurance.

First, you need enough dwelling coverage to pay for repairs to your condo’s interior. Check with your HOA to see what’s covered under their policy so you can fill in the gaps. You should also get an idea of construction costs in your area to make sure your dwelling coverage will be enough for a full rebuild.

Next, you need enough personal property protection to replace your things if they are lost, stolen or damaged. And you should know the difference between actual cash value (ACV) and replacement cost coverage. With actual cash value, if your TV is stolen, your insurer will only pay what it was worth when it was stolen (factoring in depreciation). Replacement cost coverage pays for a brand-new TV. And if you own more expensive items (collectibles, art and jewelry), you can purchase extra coverage with increased limits.

Finally, make sure you have enough liability insurance to protect your assets if you’re ever sued or someone gets injured on your property. Lawsuits can be very expensive, and you should have enough liability to protect yourself. If you have a higher net worth, you may also want to consider umbrella insurance to increase your liability limits even more.

How to Save on Condo Insurance 

Everyone wants to pay less for more. If you’re looking to cut your condo insurance costs, here are a few tips:

1. Bundle up, baby!

It’s true. Bundling your condo insurance with a homeowners or auto insurance policy with the same company can really save you money. Ask your insurance carrier or insurance agent if you can bundle and save.

2. Increase your deductible.

If you have enough saved up, increase your deductible and watch your monthly premium drop like a rock in a small pond. Seriously. Increasing your deductible is an easy way to lower monthly costs. (Deductibles are usually in the range of $500, $1,000 or $1,500.)

3. Limit claims.

Your insurance company likes it when you make fewer claims. Duh. But sometimes they’ll pass that savings on to you through discounts. So next time you’re considering filing a claim, think about if it’s really worth it.

4. Get serious about safety.

Some insurance companies will offer discounts if you install better security features on your condo. So go grab some deadbolts and start saving!

5. Go shopping!

Shopping around for better rates never hurts. You might be able to save by simply switching to a different company who can offer you a more competitive price for the same coverage.

If you really want to make sure you’re getting the best coverage at the very best price, we recommend working with one of our insurance pros who is part of our Endorsed Local Providers (ELP) program. They are RamseyTrusted and can shop for you to find the best deal. They can also make sure you don’t end up paying for coverage you don’t need.

Like your home, your condo is one of your biggest investments. You might have even dreamed of buying it for decades and now you finally have it! Protecting that investment is a big deal. Connect with an ELP today and get the right coverage.