How Much Condo Insurance Do I Need In 2021?

By Sa El Published:

As a condo owner, you’ll need a condo insurance policy to protect your home and your possessions from fires, storms damage, theft, and vandalism.

If you’re like most condo owners, you’re probably asking, “how much condo insurance do I need?”

how much condo insurance do i need

The truth is, there’s no one-size-fits-all answer—the amount of insurance you need depends on a number of different factors.

To help you figure it out, we take a closer look at condo insurance in this article.

How Much Condo Insurance Do I Need?

To figure out how much condo or townhouse insurance you need, take an inventory of all the items in your home.

While this isn’t anyone’s idea of fun, some apps can make it easier. If you prefer to develop your own system, create a spreadsheet, and do it your way.

Whichever method you choose, backup your data and include photos in your documentation.

Next, reexamine your HOA’s insurance policy. What exactly does it cover? And what’s left to you? In particular, look at items like:

  • Plumbing and wiring
  • Original lighting fixtures
  • Original kitchen cabinets and appliances
  • Original bathroom vanity, shower, and bathtub

If the HOA policy does cover some or all of these items, you can safely go with a lower coverage option.

However, if they don’t cover these items, you’ll need to choose a higher coverage amount to protect yourself.

There may also be condo insurance requirements from your mortgage company that you’ll need to abide by when purchasing your home.

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What Condo Insurance Does and Doesn’t Cover?

Condo insurance provides coverage for a variety of different losses to both your unit and your property.

While each policy is different, you can expect most to cover:

  • Damage from fire, smoke, and explosions: Your policy will cover any damage to your home due to these events.
  • Storm damage from lightning, wind, and hail: Storms can cause extensive damage to your home, and your insurance will cover the cost of the repairs from these events.
  • Personal liability: If someone gets hurt in your unit, your condo insurance policy will cover their medical bills and any legal costs that may arise from the incident.
  • Damaged or stolen possessions: Homeowners association (HOA) insurance doesn’t cover damage to your personal items, such as furniture, electronics, and clothing.
  • Loss of use: If you lose the ability to live in your home due to a covered event, your policy will cover the costs of finding alternative living arrangements, like staying in a hotel until you can move back. This money could also cover expenses like food and laundry while you’re away from your home.

Your condo insurance policy coverage will also depend on whether your HOA insurance is an “all-in” or “bare walls” policy.

Comprehensive or “all-in” policies typically cover damage to plumping, wiring, and the original structures and fixtures in the unit.

Bare walls policies, on the other hand, don’t cover anything within your unit. If the HOA policy covers it, then there’s no need for your condo insurance to cover it.

Just as it’s important to understand what your condo insurance covers, it’s important to understand what it doesn’t cover.

Again, policies vary, but condo insurance typically doesn’t cover:

  • Normal wear and tear: When you live in a space, the unit will show normal wear and tear to the floors, doors, windows, cabinets, and appliances. You’re responsible for keeping up with routine maintenance, repairs, and replacements.
  • Damage to the exterior of the building: Your HOA policy typically covers damage to the building’s exterior from fire, vandalism, or other events. If the amount of the damage is greater than the amount covered by the HOA policy, residents may be required to contribute to the cost of repairs, which would be covered by your condo insurance.
  • Flood damage: Condo insurance does not cover flood damage. If you live in an area prone to flooding, look into acquiring a separate flood insurance policy.
  • Damage to shared areas: HOA policies cover any damage that occurs to a shared area such as the pool, playground, tennis court, elevator, green spaces, or hallways.
  • Nuisance animals: Animals like mice, termites, and birds can damage your unit. If you encounter this type of issue, you’ll need to pay for pest removal and repairs.
  • Liability in shared areas: The HOA policy will cover medical expenses and legal costs that arise from injuries in shared areas on the property.

How Much Condo Insurance Costs?

The cost of your condo insurance policy will vary depending on factors like:

  • Events that are covered by the HOA policy
  • Your personal property value
  • State laws
  • How much you can afford

Once you know what needs to be covered and its value, begin getting quotes and evaluating insurance policies to find the right fit.

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HOA vs. Condo Insurance

As the owner of a condo, you only own the area in your unit—not the entire building or the land it sits on.

The property owner has insurance covering the structure as a whole and the outside areas of the property.

That means the master property insurance policy covers a disaster or accident occurring in the complex’s parking lot, or a fire that damages the roof.

The rule of thumb for condo insurance is that it only deals with incidents within your unit’s walls and any outdoor space that is exclusively yours, like a deck or patio.

3 Best Companies for Condo Insurance

We’ve listed three highly-recommended condo insurance companies so you can compare coverage and rates to find the best policy for your needs.

Lemonade

Lemonade offers comprehensive policies at affordable rates, starting at about $25 per month.

The company focuses on bringing insurance into the 21st century, creating a user-friendly experience, and making complex policies easy to navigate.

Hippo

Hippo emphasizes that they create policies with the modern homeowner in mind.

With higher coverage limits than traditional policies for computers and other electronics, along with useful smart home upgrades, Hippo offers customers unique and valuable benefits.

Allstate

Allstate offers customers dependable and comprehensive condo insurance nationwide.

With Allstate, you’ll be working with an established, experienced company that offers customers a variety of ways to save money on their policies.

THE SIMPLY INSURANCE WAY

Home Insurance made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us.

Unbiased, expert advice.

Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get home insurance coverage within minutes of getting your quotes and applying.

Take Action

It’s impossible to recommend a one size fits all amount for condo insurance coverage.

This is because the amount of condo insurance you need depends on your HOA policy coverage, state laws, and the value of your possessions.

You should have a much better idea of how much condo insurance you will need, don’t waste any time, and click here to get some quotes and get covered.


Sa El

About the author

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 13 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 13 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

Sa El


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