Everything You Need to Know About Condo Insurance

Condo insurance coverage has an average cost of a little over $80 per month depending on the additional coverage you need. Your condo insurance policy should protect your unit from fire and smoke, explosions, wind and hail damage, theft, vandalism, lightning, and pipe bursts and floods in your unit. Follow this guide to compare condo insurance quotes online.

Are you looking for free insurance quotes?

secured lock Secured with SHA-256 Encryption

Emma Williams, originally from London, has been published in the London Evening Standard, The Telegraph, London Loves Business, and Country Living. She has a keen interest in property, U.S. politics, and law but also enjoys writing lifestyle-focused pieces.

Full Bio →

Written by Emma Williams
Writer & Researcher Emma Williams

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Congratulations, you’ve purchased a condo! Now it’s time to protect your investment and yourself with condo insurance.

Not sure where to start? Don’t worry, we’ll explain everything you need to know about condo insurance. After all, condo insurance isn’t exactly like homeowners insurance. Condo insurance policies have different guidelines than homeowner’s insurance, but there are ways they’re similar as well. So let’s take a look at what condo insurance is, why you need it, and how much this type of coverage typically costs.

tall condo buildings, palm trees, blue sky, white clouds, windows

What is condo insurance?

First of all, let’s define condo insurance. This type of insurance may not be as familiar as homeowner’s or renter’s insurance. But it works very similarly to other types of insurance.

Condo insurance, also known as an HO-6 insurance policy, protects everything inside your condominium, including interior and exterior walls, fixtures, etc. In this, it is very similar to renters insurance or regular HO-3 home insurance.

Here’s a helpful summary of what a typical condo insurance policy provides coverage for:

  • Personal liability – any expenses that come from lawsuits made against you or while on your property are covered.
  • Personal property – this covers things like your furniture, appliances, electronics and other things that are not permanently fixed to the condo unit.
  • Building property – this protects the unit itself. Everything from the walls and floors to the fixtures and cabinets will be covered in this section.
  • Loss of use – this covers the costs associated with finding other housing or transportation if your condo is uninhabitable after something like a fire.
  • Loss assessment – this covers your portion of any losses that the condo association shares out among all other owners.

Your condo association will be responsible for ensuring the exterior spaces of the condo community. This will include things like the parking lot, overhead canopies, etc. Condo insurance only covers your specific unit.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

secured lock Secured with SHA-256 Encryption

Do I need condo insurance if I’m part of an HOA?

Most condos come with a homeowner’s organization or HOA (homeowners association). When you’re part of an HOA, you pay a monthly or yearly fee to this organization. The HOA is set up to protect you and work for all of the residents in the community.

However, HOAs are not the same thing as condo insurance. They have a few specific differences:

More Specifics on HOAs:

  • According to the realtors at Northern Virginia Home Pro, who specializes in condos, HOAs are responsible for the common areas of a condo community.
  • HOAs maintain community pools and lobbies, contract your landscaping service, and other things you’re not directly responsible for, including the roof of the whole complex.
  • The HOA is also responsible for taking care of other issues. They arbitrate disputes and decide on any changes to the common space.

Where Condo Insurance Comes into Play:

  • Condo insurance goes beyond the HOA and protects the inside of your individual unit.
  • Condo insurance is there for emergencies; the HOA is not. Condo insurance can recoup damages inside your unit. It can also help you replace stolen belongings or cover your liability if there is an injury in your home.
  • Sometimes external damage to the condo community may exceed the HOA’s budget. In this case, your condo insurance can help make up the differences. However, in this instance, every resident will be expected to chip in.

men sitting on couch with laptop, large class windows, coffee table, wooden bowl, blue blazer, marble

Do I really need condo insurance?

Condos are a unique type of living situation. Most condos are set up like apartment buildings, but you completely own your individual unit.

Because of the differences between renting an apartment, owning a single-family home, and owning a condo, each situation requires its own type of insurance.

Think about it as if it were a single-family house. If a fire burned your entire house to the ground, you’d be thankful for your homeowner’s insurance, right? Well, what if you have a condo and the fire not only burns your entire unit, but also the ones above and next to you? Then you’ll be responsible for the damages to your unit and the others!

If you plan on purchasing a condo, ultimately you will need condo insurance. And how much condo insurance you need depends largely on where you live. Do you live in a state with a lot of tornadoes or hurricanes? Or does your home state see a lot of snow and ice? These are questions you and your insurance agent will have to consider.

How much does condo insurance cost?

Your condo insurance costs will vary like all other kinds of insurance based on the amount of coverage you choose. Typically, condo insurance will cost between $100-$500 per year for base plans. If you have a lot of highly valuable items (like jewelry or an art collection) or if you need more liability protection, then the yearly cost of your condo insurance will probably increase.

Where you live will also affect the price of your condo insurance. Some major cities like Miami, Chicago, New York, or Los Angeles will have higher condo insurance than smaller cities.

Plans in major cities may cost well over $1,000 per year.

Most condo insurance policies include at least $100,000 in liability coverage. If you need to cover more than that amount, you can always purchase more.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

secured lock Secured with SHA-256 Encryption

What are the different kinds of condo insurance coverage?

There are three main types of coverage with condo insurance: inclusive, a special entity, and bare walls bare studs.

The one you choose will depend on how much coverage you need.

  • Inclusive – all in inclusive condo insurance covers everything in your individual unit. This includes the exterior and interior surfaces, fixtures, installations, etc. You will still be required to purchase personal property insurance to protect your belongings.
  • Special Entity – special entity condo insurance provides coverage for the unit’s structure. It does not protect or aid with improvements made to the structure or additions. You will still need personal property insurance as well.
  • Bare Walls Bare Studs – this insurance covers the least of any type of condo insurance, but it is also the most affordable. This type of condo insurance only covers the unit’s structure. If you want protection for the interior fixtures and other contents, you will need other types of insurance.

What exactly does condo insurance cover?

Clearly, what condo insurance covers will vary by type. No matter the type you choose, you will still likely need personal property insurance as well. Because it is the most inclusive, let’s look at what an all-inclusive condo insurance covers. The other two types will cover less than is listed here.

All-inclusive condo insurance will protect your unit from fire and smoke, explosions, wind and hail damage, theft, vandalism, lightning, and a pipe that bursts and floods your unit.

It will also have liability insurance in case someone else gets unintentionally injured in your condo. Earthquakes, floods, nuclear disasters, and other damages are not covered by condo insurance. These will require separate policies.

If you have very specific needs – like if you own an exotic pet – you need to speak directly with your insurance agent to make sure you are covered in a variety of unique situations that might apply to you and your family.

Make sure to purchase your condo insurance from one of the best insurance providers. They will be able to give you the specifics of your individual plan and answer any questions you may have about coverage.

group of condo buildings, waterway, ocean, trees, blue water, white buildings

Enjoy Your Condo and the Security of Insurance

A condo can be a great alternative to traditional home ownership. Condos allow you to own your own property while also providing the amenities and conveniences of apartment living. That’s why condo popularity has grown in recent years, especially with the Millennial generation of homeowners.

Once you’ve found your dream condo, you need to protect it. That’s where condo insurance comes into focus. Make sure to do your research and read reviews from trusted industry experts before deciding on the right provider for you.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

secured lock Secured with SHA-256 Encryption