What Is Condo Insurance, and How Much Does It Cost?

As a condo owner, it’s important to understand that your homeowners association’s (HOA) master insurance policy primarily covers common areas and the building’s exterior. To safeguard your personal belongings and the interior of your unit, you’ll need a separate condo insurance policy, known as an HO-6 policy. This coverage fills in the gaps and ensures you’re protected against unexpected events such as fire, theft, or liability claims.

While condo insurance shares similarities with traditional homeowners insurance, it differs in coverage specifics and cost. To help you navigate your options, we’ve compiled essential information on coverage details, pricing, and tips for selecting the best policy to suit your needs.

What Is Condo Insurance?

Condo insurance fills the gaps left by your condo association’s master policy, which typically covers the building’s exterior and shared spaces such as hallways, lobbies, and pools. However, it doesn’t extend to your personal unit, making additional coverage essential.

Master policies come in three types:

• Bare walls coverage: Covers only the building’s structure and shared spaces, excluding unit interiors
• Single entity coverage: Includes original fixtures within condo units but not upgrades
• All-in coverage: The most comprehensive coverage, covering fixtures, appliances, and even upgrades

Understanding your master policy helps determine how much additional condo insurance you need.

What Does Condo Insurance Cover?

A condo insurance policy provides financial protection in various situations, covering repairs from specific perils, liability costs if a guest is injured on your property, replacement for stolen or damaged belongings, and temporary living expenses if your unit becomes uninhabitable after damage. Below is a breakdown of the key coverage areas.

Dwelling and Building Property Coverage

Your condo association’s master policy determines whether you need additional dwelling coverage:

• Bare walls coverage: You must insure fixtures, cabinetry, appliances, and flooring
• Single entity coverage: Covers original fixtures, but you’ll need extra coverage for upgrades
• All-in coverage: Likely covers everything, reducing the need for dwelling coverage

Personal Property Coverage

Condo insurance helps replace stolen or damaged personal belongings such as furniture, electronics, appliances, and clothing. High-value items such as jewelry, artwork, and musical instruments often have coverage limits, but you can purchase additional protection.

Personal property coverage comes in two types:

• Actual cash value (ACV): Pays for the value of your item based on depreciation over time, typically lowering your payout
• Replacement cost coverage: Covers the value of your items at current market value without depreciation deductions

Covered Perils

Most condo insurance policies protect against common risks, including:

• Burst pipes
• Explosions
• Fire
• Hail
• Lightning
• Riots
• Smoke damage
• Snow and sleet damage
• Theft
• Vandalism
• Windstorms
• Damage from vehicles or aircraft

Personal Liability and Medical Payments Coverage

If a guest is injured in your condo or their property is damaged, this coverage helps pay for medical expenses or legal costs if you get sued.

Additional Living Expenses and Loss of Use Coverage

If your condo becomes uninhabitable due to a covered peril, this coverage reimburses you for temporary living expenses, including hotel stays, dining, and transportation.

Loss Assessment Coverage

If the cost of repairing your condo building exceeds your condo association’s master policy limits, unit owners may have to contribute. Loss assessment coverage helps cover your portion of those costs.

Vacant Condo Insurance

If your condo is unoccupied for 30 consecutive days or more, your standard policy may not cover claims that occur during this period due to increased risk. If you plan to leave your condo vacant for an extended time, consider purchasing vacant condo insurance for added protection.

How Much Condo Insurance Do You Need?

Condo insurance is not required by state regulations in most cases, but often your mortgage lender or condo association will require it to protect their financial interests. How much coverage you decide to get is a personal choice, but here are some general guidelines.

First, go over your condo association’s master policy to see how much dwelling coverage is included. The more that is covered by the master policy, the less condo insurance you will need. To determine the coverage amount you need, think about how much it would cost to rebuild your condo if it was damaged. Consider the condo’s original layout, and factor in the value of any additions or changes you have made to the property.

In general, the recommended limit for personal property coverage is 50% of your dwelling coverage, according to insurance companies such as Progressive. If you have a lot of valuable items such as jewelry, consider purchasing additional coverage.

Condo insurance usually provides $100,000 in liability coverage. Typically, you have the option to increase this amount to up to $500,000. If you get sued, your investments, savings, vehicles, and other assets are at risk. Consider purchasing enough liability protection to cover the cost of all your assets. If this amount exceeds $500,0000, consider purchasing an umbrella policy.

Loss-of-use condo insurance coverage, which pays for living expenses if your unit is damaged by a covered event and becomes inhabitable, is generally about 20% of dwelling coverage.

How Much Does Condo Insurance Cost?

For the most accurate pricing, we recommend getting quotes from multiple companies in your area.

The Most Expensive States for Condo Insurance

The states where condo insurance is the most expensive are high-risk areas, prone to weather events such as hurricanes and tornadoes. The top five most expensive states for condo insurance include:

• Florida
• Texas
• Louisiana
• Oklahoma
• Mississippi

The Cheapest States for Condo Insurance

States with more affordable condo insurance are typically less densely-populated and have a lower risk for extreme weather. These include:

• Wisconsin
• Utah
• North Dakota
• Iowa
• South Dakota

How Can a Home Warranty Supplement Condo Insurance?

While condo insurance protects against sudden damage from perils such as fire, theft, and storms, a home warranty can provide additional security by covering repairs and replacements for major home systems and appliances due to wear and tear. This can help reduce out-of-pocket costs for essential repairs that insurance wouldn’t cover.

Filing a claim with a home warranty is typically straightforward—just contact your provider, pay any applicable service fees, and the company will arrange for a technician to assess and repair the issue. Most providers aim to send a technician within 24-48 hours, but the timeline can vary depending on the nature of the problem and the provider.

Keep in mind that a home warranty is an additional expense on top of your condo insurance. Home warranty costs typically range from $564–$984 annually, depending on the coverage plan and provider. Customers also owe a service call fee, usually between $75 and $125 per visit, when filing a claim. While these costs can seem like an extra expense, a home warranty can offer added protection against unexpected repair bills.

Below, we’ve highlighted details on the type of coverage home warranties can offer condo owners:

What Does a Home Warranty Cover in a Condo?

A home warranty typically covers home appliances and systems, including the following items:

• Appliances: Refrigerator, dishwasher, oven, built-in microwave, garbage disposal, and washer and dryer
• Systems: HVAC, electrical, plumbing, and water heaters

Types of Plans

Home warranty plans vary by provider, but most policies fall into three categories:

• Appliance-only plans: Covers home appliances, including kitchen and laundry units
• Systems-only plans: Covers home systems, such as your electrical, plumbing, and HVAC
• Comprehensive plans: Covers both appliances and home systems under one policy

Optional Add-Ons

Condo owners may have the option to buy additional coverage for:

• Secondary appliances: Wine coolers, stand-alone freezers, or second refrigerators
• HVAC upgrades: Coverage for ductwork or additional heating units
• Plumbing extras: Limited coverage for fixtures, sump pumps, or sewer lines

What a Home Warranty Won’t Cover

While a home warranty provides valuable coverage for individual systems and appliances, it doesn’t extend to shared or communal items in a condo. These areas are typically covered by the condo association’s master policy or fall under the HOA’s responsibility.

Examples of items not covered by a home warranty include:

• Shared systems: Elevators, communal HVAC systems, or plumbing in shared walls
• Building exterior: Roofing, siding, or exterior walls of the condo
• Common areas: Hallways, lobbies, gyms, pools, and other shared amenities
• Landscaping: Lawn care, trees, or shrub maintenance in common areas

The condo association generally maintains these items, and their upkeep is covered through HOA fees. A home warranty is specifically designed to protect the interior systems and appliances within your unit, making sure you’re not left with costly repairs for things that wear out over time.

If you’re interested in supplementing your condo with a home warranty, we’ve also rated the best home warranties for condos.