How Much Does Condo Insurance Cost

You may be wondering, “How much does condo insurance cost?” The average cost of a condo insurance policy is different depending on where you call home.

Average Cost of Condo Insurance

The average price of condo insurance varies depending on where you live. The following are some average costs in six different states:

If you’re looking for a condo insurance calculator, click here. Then select the condo icon and enter your address.

How Is Condo Insurance Priced

There are several factors that can determine how much a condo insurance policy costs.

Your Coverage

How much coverage you require will have a big impact on your condo insurance rate. For example, in addition to your policy’s standard coverages, you may decide to add extra coverage for particularly expensive pieces of property, like jewelry. Or, you may decide to increase your dwelling, personal property and liability coverage limits.

Your Location

Insurance is all about risk, so customers who live in areas prone to claims will pay more for their condo insurance coverage on average. For example, you’ll likely pay more if your condo is located close to the coast, as your possessions could be damaged by high winds and stormy weather. You’ll also pay more if you live in an area with a high rate of theft and other crime, such as certain urban areas.

Conversely, your rate will be lower if you live in a relatively crime-free area away from the coast.

Your Personal Risk

Personal attributes, like your claims history and credit score, can affect your condo insurance rate, as well. Chances are, the more claims that you file, the higher your insurance rate will be. If you have a good credit score, your insurance rate will be lower.

Age of Building

On average, condo units in older buildings usually cost more to insure than units in newer buildings. That’s because they may have dated plumbing, heating or electrical systems, which pose a greater risk. In addition, new condos are more likely to be updated with the latest security measures and comply with the latest construction regulations.

Discounts

The rising cost of insurance is a common complaint these days. Fortunately, insurance companies offer a variety of discounts and other savings opportunities that will help lower your condo insurance rate.

Security Protection Devices – You should receive a discount on your condo insurance if your condo has a security protection device already installed. Examples include fire and smoke detectors, sprinkler systems and security alarms. You may also get a discount if your building employs a doorman or security personnel.

Bundling – Another way to lower the cost of your condo insurance is through bundling. Bundling is when you buy two or more policies from the same insurance company. For example, you can bundle your condo insurance with your auto insurance.

Claims-Free – Being claims-free will also help drive down the cost of your condo insurance. There are some variables with this discount so be sure to check with your insurance carrier. For example, some carriers will require you go three years without submitting a claim, others five years.

Paperless – To help the environment, many condo insurance carriers offer a small discount if you choose to receive your bills and documents electronically.

Pay in Full – Some insurance carriers offer a small discount if you pay your policy premium in a single payment at the beginning of your insurance year.

Deductible – A deductible is how much you’re required to pay out-of-pocket toward a condo insurance claim. A good rule of thumb is the lower your deductible, the higher your rate. Therefore, if your goal is lower condo insurance rates, you may want to keep your deductible higher.

Standard Coverages

Another factor that insurance companies consider when determining the cost of your condo insurance is what kind of coverage you buy. Your average condo insurance policy will typically include the following:

• Personal Property – Covers the cost of personal property damage or theft. Applies to possessions inside and outside of your home, such as furniture, TVs and computers.
• Cabinets and Fixtures – Protects what is within the walls plus anything attached to the walls, such as your cabinets, appliances and flooring.
• Personal Liability – Provides protection if you’re legally responsible for property damage or injuries to others. It may also help pay for legal expenses, medical bills for other people, and other costs. 
• Emergency Living Expenses (or Loss of Use) – Reimburses you for lodging, meals and other related expenses if you need to vacate your unit due to severe damage from a covered event.

Add-On Coverages

Beyond your condo policy’s standard coverages, you may want to add even more protection. Here are some examples of optional add-on coverages.

Home Cyber Coverage

Replacement Cost for Contents

Water Backup Coverage

Extra Coverage for Your Valuables

Supplemental Loss Assessment

Home Cyber – Home cyber coverage will keep you one step ahead of identity thieves and cyber-criminals. For example, if you’re the victim of a cyber-attack, home cyber coverage could help pay to restore your computing device to its previous level of functionality.

Replacement Cost for Contents – If a particular piece of property gets damaged, this coverage will pay to replace it with a new, similar item. Without this coverage, you would only be paid what the item is worth at the time of the loss, which might be less due to depreciation.

Water Backup – This coverage pays to replace your property if it’s damaged by water backing up into your condo, usually through sewers, drains or overflows. Water backup coverage is a good idea if you live in a condo with a basement and a sump pump.

Extra Coverage for Your Valuables – Your standard condo insurance policy already covers high-value items, like jewelry, up to a certain amount. If you want extra coverage, you can purchase an endorsement. An endorsement will raise the coverage limit of a specific item or categories of items.

Supplemental Loss Assessment – This coverage pays for damages to shared areas that exceed your condo association’s policy limits. For example, if a fire causes $500,000 in damage to the building and your association’s insurance limit is $300,000, then the remaining $200,000 must be covered by the condo owners. If there are 20 units in the building, each condo owner will be responsible for $10,000. This coverage would help pay that amount.