The cost of condo insurance is around $500 per year on average. Keep in mind, this number is per unit. However, the rates could vary greatly depending on the coverage you select, your location, and so on.
In this article, we’ll discuss the average cost of insuring your condo based on various factors. We’ll also share some common coverages that would come in handy. Let’s get started.
In general, condo insurance tends to be quite expensive in areas prone to natural disasters. This would include areas prone to flooding, hurricanes, and tornadoes. The reason for this is that there’s an increased risk of property damage.
States where condo insurance is the most expensive pay around $750, which is around 30 percent higher than the national average. However, this shouldn’t come as a surprise since the following states experience tropical storms or tornadoes frequently.
These 5 states have the highest condo insurance rates in the country:
The states where condo insurance is the cheapest spend of average $290, which is about 43 percent lower than the national average. This is because these states don’t experience extreme weather conditions as often so there’s less risk involved.
However, other factors can affect your condo insurance rates besides your location.
These include:
A typical condo insurance policy includes the following coverages to protect property owners in the event of pricey lawsuits or property damage.
It’s important to note, your insurer will only cover damages or injuries that are considered a covered peril. Talk with your insurance agent so you know what’s covered and what’s not.
This compensates for various medical expenses in the event one of your guests gets injured on your property.
Dwelling coverage helps pay for any repairs to the interior of the policy owner’s condo. This can include the counters, floors, and walls.
If someone is injured or their property is damaged and you’re found liable then you need this coverage. This will compensate for any legal fees you incur in the event someone sues you for injuries or property damage.
If your personal property in the condo is stolen or damaged then this coverage will kick in to replace or repair the items. This can include things like furniture, appliances, electronics, and more.
Keep in mind, your items will likely be covered up to a certain limit. Typically this is around $2,500. Therefore, you may want to increase your coverage if you’re worried about your items being underinsured.
If a policy owner is unable to rent out their condo due to a covered peril then this coverage will compensate you for any lost income you experienced during that time.
If someone were to get injured or cause damage in the shared area of the condominium then you may want this coverage. This can include areas such as the pool, lobby, hallway, parking lot, and so on. If the condo’s master policy doesn’t cover all the damages then the individual owners throughout the building may have to chip in to cover the rest. Therefore, loss assessment coverage may come in handy.