The average annual cost of condo insurance in the US is $531 per year. That’s according to the National Association of Insurance Commissioners (NAIC) and represents data from just about every insurance provider in the country. 

However, averages don’t tell you very much when it comes to insurance premiums because so many factors come into play. A better way to see how much your HO6 policy might cost is to look at some of those factors.

What factors impact condo insurance costs?

Condo insurance costs vary based on the characteristics of a property and the level of risk that it presents to an insurance company. Some of the most important factors that insurance companies use to calculate premiums for an individual condo unit are the location of the unit, the coverage limits and deductible needed, and the claims history of both the owner and the unit itself.

Location

Your condominium's location is important because where you live determines the kinds of perils you might face. If you live in a coastal region, for example, your condo could be hit by a hurricane or tropical storm. On the other hand, condo owners in a big city may have a greater risk of being a victim of theft or vandalism if their area has a high crime rate. 

Insurance companies tend to look at risk at the county or even zip code level. But you can see some differences simply by comparing how much condo insurance costs in different states. Here’s what the data from the NAIC shows:

 Average annual condo premium by state

^{Source: National Association of Insurance Commissioners. Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2021. December 2023.}

You can see that condo insurance costs vary widely across the country. Condo insurance in Florida is the most expensive in the nation, in part because of the state’s risk for hurricanes. Compare that to Wisconsin – a Midwestern state that doesn’t face as many weather perils as Florida.

The value of your property

No matter what type of home you're insuring, the value of the dwelling and your personal property are two of the most important factors in determining your insurance premiums. That’s because most people aim to insure their homes (whether it’s a condo or not) for their replacement value, so higher value homes always cost more to insure. 

The same can be said for your personal property coverage. This is the part of your policy that covers the contents of your condo unit, like furniture, clothes, electronics, and other personal belongings. If you have a lot of valuables, you may see a higher premium than your neighbors.

Your claims history

Insurance companies look at your claims history to see if you are more likely to file a claim than other people. Someone with a history of filing property claims often pays more for their condo insurance. But the flip side is also usually true: Your insurance company may lower your rates over time if you don't file lots of claims.

And it’s not just your claims history that may influence your premium. Insurers also look at the property’s claims history to see if the unit has some sort of increased risk.

One important fact to remember about the impact of your claims history on your premium is that some claims have no effect on your costs. Some states have laws that keep insurers from raising rates based on catastrophic claims because you have little control over these types of events.

Coverage types and deductibles

Your condo insurance costs will go up if you add on coverage for high value items, or if you add a lot of optional coverage on to your base policy. Any time you buy-up to more coverage, you'll increase your insurance costs.

How to lower your condo insurance costs

Insurance costs have been skyrocketing in recent years. You aren't alone if you find yourself paying more for your condo insurance than you have in the past. Here are some tips for lowering the cost of a HO6 policy.

Shop around

It's always a good idea to get multiple quotes when you're shopping for condo insurance. Each insurer has a different method of calculating HO6 rates, and you may find that one insurer is more affordable than another. Just be sure you're comparing the same or similar coverage across all quotes that you receive. 

Raise your deductible

Choosing a higher deductible always means saving a little on your insurance premiums. But remember that the higher deductible means you'll have to pay more out of your own pocket for repairs after a covered loss. 

Find discounts

Most insurance companies offer a wide range of condo insurance discounts. Consider an insurance company that offers smart home discounts, where you receive discounts for installing devices or subscribing to services that help mitigate your risks (e.g., security systems, fire sprinklers, and wind mitigation measures).

Maintain a good credit score

Insurance companies often look at your credit-based insurance score to determine your condo insurance premiums. Studies have shown a correlation between the factors that lead to a lower credit score and a tendency to file insurance companies. You'll usually get lower rates if you have good credit.