So you’re ready to buy a condo. Congratulations! That’s an exciting purchase.
Chances are, it didn’t come cheap. So you’ll want to ensure you’re protected in all eventualities.
Naturally, insurance is just one of many considerations, but it’s an essential part of a good mortgage deal and protection from financial loss later on.
But of course, there are still questions to answer. What kind of insurance will you need? How much is condo insurance? And what should you look out for when choosing insurance cover?
So we’ve put together a guide on the average condo insurance costs and everything you need to know about them.
Let’s dive right in!
Check Your Condo Association’s Policies
What is and isn’t covered by your condo association policies can affect your coverage and is one of the things you should know before you get insurance.
Condo association master insurance policies can have deductibles as high as $25,000. That makes quite the difference! Some associations also cover window maintenance and replacement, while others leave that to the condo owner.
Some, but not all, condo plans provide coverage for damages caused by drainage or sewer backups. And some condo associations offer “all-in” policies that include coverage for interior walls, floors, and ceilings of units.
The condo association’s policies and what they take responsibility for can make a huge difference in your insurance cover, but also how complication-free your ownership is going to be.
When choosing your condo, it can be beneficial to consider master policies when estimating the costs for the apartment, because a cheaper property with lower coverage might still end up costing you a lot in insurance and maintenance fees.
What Are the Average Condo Insurance Costs?
With the above in mind, you might already have guessed that condo insurance can vary greatly depending on several factors. They can be:
- The location and structure of your condo
- How much coverage you need to buy for complete protection
- The coverage options you choose
- Your chosen deductible and whether or not you have deductibles from the condo association policy
- Deals and discounts
To protect the interior of your condo, you will likely need H0-6 insurance. A local, independent insurance advisor can help you work out what coverage you need and where to find the best deals for your chosen budget.
This is important, as location can place a huge role in insurance costs, and an average price online will not inform you about your situation. Receive professional and local advice to make the best-informed decision.
An advisor may also be able to take a look at the location and building and determine whether you might receive a better deal due to robust construction or safety features, such as sprinkler systems and monitored alarms.
The average cost of condo insurance also varies significantly by state. The cheapest annual average rate is in Wisconsin at $240 a year, and the most expensive is Texas at $740. Overall, the US average is $478 a year.
How Much Condo Coverage Do You Need?
The first step to finding out your needed coverage is to see what’s covered by the condo association’s master policy, as detailed above.
If they provide an “all-in” policy, for example, you then only need coverage for your appliances and other contents. Otherwise, you will need coverage for windows, walls, and floors.
To find out how much content coverage you need, go through every room of your home and create an inventory of all your belongings.
This should include things you might overlook or seem inexpensive, such as clothing, utensils, personal electronics, and jewelry; use this list to work out the monetary value of your own property. Costly valuables may need additional cover.
Several different coverage options determine the price of your insurance:
- Actual cash value coverage: This covers you for the current depreciated value of your items. So if you bought your phone at $300 in the past and it is now worth $150, you would only be covered for $150.
- Replacement cost coverage: This is more expensive, but covers the cost it would take to replace your property at the current market price, which is likely much higher than the current value of your possessions.
- Named-risk insurance: This covers you for specifically named eventualities. You can, for example, insure yourself against fire or theft, but won’t be covered for destruction by a tornado.
- All-risk insurance: This is yet again more expensive, but covers you against all risks.
Types of insurances usually fall into the following categories and you should check what coverage is suited for your needs.
Discounts on Your Insurance
There are many ways to get deals or discounts that will lower your annual condo insurance costs. Many insurers offer discounts when you buy multiple policies or if you are a non-smoking home and have installed deadbolts on exterior doors.
There are also senior discounts and lower rates for individual memberships. A local independent insurance advisor will be well-versed in available deals and should be able to inform you.
Ready to Find the Right Insurance Deal for Your Condo?
We hope this article has helped inform you about the types of coverage you might need and what you need to consider when you choose your insurance.
Remember, this is just a guide, and average condo insurance costs will vary significantly between states, locations, and the condo association policies in place.
For anyone in North Carolina, Amistad provides honest, dependable, and customer-oriented insurance services that could be the right cover for your condo.
Get in touch on our 24-hour phone line to get a quote and discuss what coverage you need, or visit our blog for more information on how to choose the right insurance.