Condo insurance, also known as an HO-6 policy, covers the interior of your condo unit, your personal belongings, and your liability. It works alongside your HOA's master insurance policy to provide complete protection. Condo insurance is significantly cheaper than homeowners insurance because the building structure is covered by the HOA.
Average Condo Insurance Costs
National average condo insurance cost: $530/year or $44/month. Range: $350-$850/year depending on location, coverage amount, and unit value. Cost by coverage level: $25,000 dwelling: $300-$450/yr, $50,000 dwelling: $400-$600/yr, $100,000 dwelling: $550-$850/yr. Condo insurance is 50-70% cheaper than homeowners insurance.
What Condo Insurance Covers
An HO-6 policy covers: Interior dwelling coverage (walls, floors, fixtures, cabinets, countertops from studs-in), Personal property (furniture, electronics, clothing), Liability (if someone is injured in your unit), Loss of use (temporary housing if unit is uninhabitable), Medical payments (guest injuries), and Loss assessments (your share of HOA special assessments up to policy limits). NOT covered: Building exterior, common areas, or anything covered by HOA master policy.
HOA Master Policy vs Condo Insurance
Your HOA's master policy covers the building structure, common areas, and shared amenities. Two types: Bare walls coverage (most common) — covers only the building structure from the exterior walls to the studs. You need condo insurance for everything from studs inward. All-in coverage — covers building structure plus original fixtures. You need less dwelling coverage but still need personal property and liability.
Best Condo Insurance Companies
Top-rated condo insurers: Amica (best claims, competitive rates), State Farm (best agent network), Lemonade (best digital experience, fast claims), Allstate (best customization), USAA (military only, best rates), Erie (cheapest where available), and Liberty Mutual (good for high-value units). Always compare at least 4-5 quotes.
How Much Condo Insurance Do I Need?
Calculate your needs: 1) Review your HOA master policy to understand what's covered. 2) Estimate interior rebuild cost (cabinets, flooring, fixtures) — typically $20,000-$100,000. 3) Inventory personal belongings — average condo owner has $30,000-$75,000 in belongings. 4) Choose liability coverage — minimum $100,000, recommended $300,000+. 5) Consider loss assessment coverage — $25,000-$50,000 recommended.