FROM OUR PARTNERS

Best Condo Insurance of 2022

Charles Baisden

Have a peace of mind knowing condo insurance will help protect your possessions and the inside of your home. We’ve ranked and reviewed various companies based on annual premiums, customer satisfaction, financial strength, and overall quality.

Affordable rates with comprehensive coverage

$1,500,000

Coverage Up To

$500 - $2,500

Deductibles

Overview

Lemonade uses modern technology to create an efficient experience for its clients. Not only that, you can get covered and make claims quickly.

What we like

  • Affordable premiums
  • Insurance discounts available
  • Fast claims process
  • No waiting period for coverage
  • Accepted by leading lenders

What we don't

  • Available only in 24 States

What is condo insurance?

If you live in a condo, acquiring condo insurance is a wise idea. Although similar to homeowners insurance, condo insurance is specifically designed for condos, and it offers protection for your possession and the damages inside your unit.

Also referred to as the HO-6 policy, this insurance protects the interior of your unit, including your personal property. It is a great addition to the HOA which only covers the exterior of your unit.

Do you need condo insurance?

Condo insurance is worth considering for anyone looking to protect their home and not be financially burdened when the unexpected can happen. An unforeseen event could be extremely expensive to pay out of pocket or sometimes worse, lose your entire investment in the condo.

This insurance policy is not required by law, as with other insurance policies like car insurance. Nevertheless, most mortgage lenders may require you to have this insurance when making payments.

This helps to protect their financial interest during the loan term. Also, the HOA may require you to acquire condo insurance even if you own nothing in the unit.

What does condo insurance cover?

Unlike a homeowner association that covers any damage done on the building exterior, condo insurance protects against any damage inside your apartment. It covers everything inside your unit including your personal property, appliances, cost of repair, and liability, in case of an accident inside your unit.

Generally, a standard condo insurance policy provides coverage for five areas:

  • Building property: This policy helps protect your unit against damages during additions, improvements, or alterations. It also covers damages to elements like flooring and sheetrock.
  • Personal property: Condo insurance insures personal items inside the unit against damage in the event of peril.
  • Liability coverage: Your personal policy will cover lawsuits or legal expenses from claims or when you accidentally harm others.
  • Loss of use: The policy covers transport or lodging costs if the place is uninhabitable. For instance, if the unit needs some repair or there is smoke from a neighbor’s unit due to a fire incident.
  • Personal property coverage: Electronics, appliances, furniture, and other movable goods are covered under the personal property coverage. Some policies may cover the actual cash value, while other insurers provide optional replacement costs to replace the property at current prices.
  • Medical payments to others: It covers medical bills when someone gets injured in your property.

What does condo Insurance not cover?

Usually, the standard condo insurance can cover damages from various hazards like theft, fire, vandalism, wind and hail, lightning, explosions, and burst pipes. However, it is not responsible for perils like floods. This means that you will be responsible for water damage caused by flooding unless you get flood insurance.

Other things that condo insurance does not cover:

  • Earthquake damage
  • Exterior damage
  • Roofs
  • Medical expenses for the condo owner
  • Intentional injuries to others
  • Wear and tear
  • Damage from rodents, birds, or insects
  • Underground water damage like sewer backups

How much does condo insurance cost?      

Basically, the condo insurance cost will depend on the type of coverage you choose. Also, this varies from one insurer to another and is based on factors like age of the building, type of construction, your deductible, credit history, and the state.

Generally, you can expect to pay about $250, going to $1000. A 2020 study revealed that Americans pay $625 per year on average in a policy that includes $60,000 for personal property coverage and $300,000 for liability coverage.

How to choose the best condo insurance

It can be daunting to select the best condo insurance, especially if this is your first time. Here are some tips to help you.

Research extensively

Before you settle for a specific insurer, ensure that you shop around first. Research the coverage that they offer to see if it meets your unique needs and requirements. Besides, comparing different companies will give insights to an insurer regarding the best prices in the market.

For this, use trusted resources and read customer reviews online to see what other condo owners think about the prospect insurer. You can also ask for referrals from other condo owners in your area.

Determine the dwelling coverage you need

By and large, the amount of coverage you need will depend on the condo’s square footage and the finishes and fixtures in rooms like the bathroom and kitchen. When figuring out how much coverage you need, keep in mind coverage for your Personal Property, Loss of Use, and Personal Liability.

You also need to evaluate the value of your personal property. For instance, you may need more comprehensive condo insurance if you own a lot of valuable stuff like jewelry than when you don’t have a lot of valuable items.

Consider if you need add-ons

Furthermore, it would be best to consider whether you would need add-ons to offer better coverage for your condominium. Some of the additional policies that you may want to consider include:

  • Second home insurance: Consider this insurance if your condo is a second home. It’s because the condo insurance may not cover damages that occur when your condo is unoccupied for more than 30 days.
  • Flood insurance: If you live in a flood-prone area, you should get flood insurance.
  • Water backup coverage: Condo insurance does not cover water damage from drain backups and sump pumps. It would help if you got a separate policy to protect you from this damage.
  • Umbrella policy: Consider this coverage if you want more liability protection.
  • Unit assessment coverage: This is coverage for the condo owner’s share of the assessment. It comes in handy when the HOA extra for assessment so condo owners can pay for a covered loss.

Inquire about policy discounts

Some insurance companies offer policy discounts when you meet certain terms. For instance, you can get lower policy premiums if you have a fire alarm or security system in your condo, are a senior citizen, or belong to an HOA. Therefore, shop around for an insurer with the best policy discounts to save on your condo insurance.