Condo Insurance (HO-6): Free Online Quotes (2023)

Condo insurance is a type of coverage for owners of condominiums. It provides financial protection in case of accidents or damage. It also helps cover the cost of repairs and the replacement of personal property, as well as liability coverage. The condo association’s master insurance policy doesn’t cover these items.^[1]

What is condo insurance?

Condo insurance is a policy condo owners purchase from an insurance company to protect their property and the possessions that aren’t covered by the condo association’s master policy. Much like home insurance, condo insurance often covers damage from fires, theft, and more — plus liability for any injuries or accidents that might happen in your unit.

Condo insurance typically also pays for living expenses if you need to relocate temporarily while repairs are made, although it depends on your insurance company and policy details.

Why do you need condo insurance?

Condo insurance is an important investment that protects you and your property. It can cover the cost of damage to your unit, including any improvements you’ve made, and protect you from a lawsuit if someone gets injured in your unit. Plus, it can even provide coverage for personal items like furniture and electronics.

Whether you’re a renter or an owner, condo insurance isn’t mandatory by law. However, if your lender requires it as part of your loan agreement, then you need coverage. Even if it’s not mandated, having condo insurance is essential for protecting yourself and your property against potential damages and liabilities. Many associations also require proof of insurance before they will allow you to move in.^[1]

Not having condo insurance can be a risky decision. Without the proper protection, you could be held liable for any damage done to the unit or face a lawsuit if someone gets injured in your home. You’d also have to pay out of pocket for repairs or replacements if something were to happen. And if you don’t have enough money to cover these costs, it would put you in an even deeper financial hole.

What does condo insurance cover?

Condo insurance can cover a variety of things, including:

1. Building property: This coverage helps protect the physical structure of your condo, including features like plumbing, wiring, and appliances. This provides you with financial support if any of these items need repairs or replacement due to a covered event.

2. Personal property: This covers your belongings within the unit itself, including furniture and electronics. It’s important to have this protection for any unexpected damage or theft that may occur.

3. Personal liability: This helps cover you if someone is injured in your condo or on the property and you’re held liable for their medical expenses or damages. It’s important to have this coverage so that you can protect yourself from legal action taken against you.

4. Loss of use: If something happens and your condo needs to be temporarily vacated, this coverage would help provide extra money for a hotel or other lodging during this time.

5. Loss assessment: If you’re part of an apartment community and members get charged fees for damages or losses incurred by everyone, this type of coverage can help protect you from paying more than your share in damages.

Learn More: Condo Insurance: What Does a Typical Condo Insurance Policy Cover?

What doesn’t condo insurance cover?

Here’s a brief list of things that your condo insurance won’t cover:

1. Property of others: This type of coverage isn’t included in condo insurance because the belongings of other people are covered by their own insurance policies.

2. Damage from certain natural disasters: Condo insurance typically doesn’t cover damage caused by floods or earthquakes. It’s important to be aware of what kind of coverage you’ll need for these types of events.

3. Structures outside the unit: Anything outside the boundaries of your unit isn’t typically covered by a condo insurance policy. But these items might be covered by the homeowner association’s building policy.

How much is condo insurance?

The cost of condo insurance is based on several factors, from the amount of coverage you need to your particular state’s laws. That means the price can vary significantly from one homeowner to the next, even within the same state. To get a better idea of what will fit your budget, compare quotes and read policies carefully.

The average cost of insurance for a condo in the U.S. is $511 per year. Some companies that offer condo insurance are Allstate, Lemonade, and Travelers.

Average condo insurance cost by state

Condo insurance costs can differ dramatically from state to state, from a few hundred dollars to more than a thousand dollars annually. Use the following chart to see if you may be paying more than you need to in your area. If that’s the case, consider shopping around for a better rate.

Best condo insurance companies

Here are some of the best condo insurance companies in today’s market.

Allstate

Allstate is a trusted insurance company that serves all 50 states. One of the pros of using Allstate for condo insurance is that it offers many different types of insurance, so you can save money by bundling. Additionally, it has an A+ (Superior) financial strength rating from A.M. Best.^[2]

One of the drawbacks of Allstate condo insurance is that it doesn’t cover certain valuables. If you want to cover expensive possessions or protect all your belongings in case of a flood, earthquake, or sewer backup, you’ll need to purchase additional coverage. It also doesn’t provide a minimum quote, but you can fill out a form to see your options.

Lemonade

Lemonade is a newer insurance company that uses AI to help process claims. Using Lemonade has many pros. For example, it holds the world record for the fastest claim paid (three seconds). It also offers several different types of insurance, including condo insurance, car insurance, and pet insurance. Lemonade has been named a top insurance company multiple times. It’s designed to be fast and efficient.

Lemonade is a publicly traded company, but it isn’t available in all 50 states. Quotes start at $25 per month.

Liberty Mutual

Liberty Mutual is a large insurance company that offers several different types of insurance, including condo insurance. It’s the sixth-largest property and casualty insurance company in the world. Prices start at $47 per month.

Some of the pros of purchasing condo insurance with Liberty Mutual are the discounts. For example, one unique feature of Liberty Mutual is that it’ll lower your premium if you don’t file a claim for three years.

One of the drawbacks is its A.M. Best financial rating of A. This rating is excellent overall, but others on this list have stronger ratings. Additionally, it doesn’t clearly list its condo insurance exclusions on its website.

Travelers

Travelers has been in business for more than 165 years. Travelers is an exceptionally well-known, trusted insurance agency with 40,000 employees and agencies in the U.S., Canada, and the UK. Additionally, it offers many different discounts on condo insurance, from a green home discount to discounts for having smoke detectors and fire alarms. It has a high A.M. Best financial strength rating of A++, higher than many other companies on this list.

One of the drawbacks is that despite its high financial rating, it isn’t among the top companies for customer satisfaction, according to J.D. Power ratings.^[3] To find out your cost for condo insurance, you must submit your information and get a quote.

Condo insurance vs. homeowners insurance

Homeowners insurance (HO-3) primarily covers the structure of your home and your personal belongings, while condo insurance (HO-6) is tailored to cover the specific needs of condominium owners. HO-3 covers damage from fires, theft, and extreme weather, as well as liability for any injuries or accidents that might happen in your home.

Condo insurance provides similar coverage, except it provides coverage only for the interior of the unit itself. This includes walls and fixtures, furniture, electronics, and other movable goods. Like an HO-3, condo insurance can cover legal expenses from claims or lawsuits against you and the costs of lodging and transport if your unit is uninhabitable due to a covered peril.

Keep in mind that condo insurance doesn’t cover the building itself. This is typically covered under the building’s master policy.

Kara Herring, president of Don Bullard Insurance and an Acrisure Agency Partner, says it’s important to know what your master policy covers. She explains, “The master policy will include liability for common areas, but you do need liability for your individual condo as well.”

Similarly, Daniel Roccato, clinical professor of finance at the University of San Diego, says, “Don’t make the mistake of assuming the HOA will cover your losses.” He suggests getting a copy of the HOA policy ahead of time so you know your responsibilities and what you’ll need to insure personally.

How to save on condo insurance

Here are some ways to save on condo insurance:

1. Increase your deductible. Increasing your deductible can help reduce your premiums. This means that you’ll be paying more out of pocket if you do need to make a claim, but it might be worth it in the end if you’re looking for ways to cut costs.

2. Bundle policies. Bundling your condo insurance with other policies, such as car or homeowners insurance, can often give you a better rate than purchasing separate policies. This is because many insurers reward customers who buy multiple policies from them.

3. Shop around. It’s important to shop around and compare different policies before settling on one. Different insurers may offer different coverage levels and discounts, so it’s best to compare multiple options before making a decision. Just make sure you’re comparing not just the pricing but also the benefits of each policy equally.

4. Check for discounts. Many insurers provide discounts for certain circumstances or qualifications, such as completing an approved safety course or having certain security features installed on your property. It’s always worth checking what kind of discounts are available to see if you qualify for any of them.

How to compare condo insurance quotes

Comparing condo insurance quotes is a great way to find the best policy for your needs at the best price. Here’s how to do it:

1. Determine your coverage needs. Before you start shopping around for quotes, it’s important to know what kind of coverage you need. Consider how much coverage is necessary for your particular situation and any risks that you may face.

2. Gather quotes from different companies. Once you know what kind of coverage you need, it’s time to start gathering quotes from different companies. Make sure to get quotes from multiple insurers so that you can compare and contrast different policies.

3. Compare coverage levels and costs. Take the time to compare the different coverage levels and costs offered by each insurer before making a decision. Look closely at the deductibles, limits, and exclusions of each policy so you can make sure you’re getting the best value for your money.

4. Read reviews of insurers. Reading online reviews can provide insight into how an insurer handles claims or customer service issues. This will help ensure that you’re selecting an insurer who will provide good service over time, not just cheap rates up front.

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