Nerdy takeaways
- Condo insurance, also known as HO-6 insurance, is designed to cover what your condo association’s master policy won’t.
- A typical condo insurance policy covers your personal belongings. It'll also pay out if you’re found responsible for someone getting injured.
- Because condo policies have potential coverage gaps, we recommend working with an agent to buy one.
If you own a condominium, your condo association will likely insure the building and common areas. But the association’s master policy won’t help you if your belongings are stolen or destroyed by a fire. For those and other potential disasters, you’ll need a personal condo insurance policy.
Other names for this type of policy include individual condo insurance and HO-6 insurance. It's generally required only if you have a mortgage. But even if your condo is paid off, it's usually worth buying.
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Personal condo insurance covers what your association’s master policy won’t. That includes things like furniture, electronics and other items inside your unit. If someone steals your TV or a burst pipe ruins your dining room set, your condo policy can reimburse you.
Condo insurance also offers liability coverage in case your dog bites someone or a guest gets hurt in your home. (Note that some insurers won’t cover certain dog breeds.)
Below are some common problems a standard individual condo insurance policy will and won’t cover. You may be able to buy extra insurance for some of the scenarios that aren’t included.
Usually covered
- Fire and smoke.
- Explosions.
- Wind and hail.
- Theft.
- Vandalism.
- Lightning.
- Burst pipe.
Usually not covered
- Earthquakes.
- Flooding (i.e., heavy rainfall or storm surge).
- Intentional injuries to others.
- Nuclear hazards.
- Damage from birds, rodents and insects.
- Wear and tear.
- Damage from underground water (i.e., sewer backup).
What does a condo association’s insurance policy cover?
The association’s master insurance policy generally covers:
- Damage to the building’s exterior. For example, the master policy usually pays for storm damage to the roof or siding.
- Damage to common areas. These could include places like the lobby, elevators, hallways and tennis courts.
- Injuries sustained in common areas. Say a visitor slips on an icy walkway outside the front door to the building. If they are injured and file a lawsuit, your association’s insurance could cover the liability costs.
The above is general guidance. Ask your property manager or condo board member for a copy of your association’s master policy to learn exactly how it works.
Did you know...
HO-6 insurance is another name for condo insurance. The term refers to one of several types of home insurance policy forms used industrywide. For example, most homeowners buy HO-3 policies, while renters have HO-4 policies.
An HO-6 policy form insures condos and co-ops. Condominiums and co-ops have different ownership structures. However, insurance policies for individual owners work pretty much the same way.
Individual condo insurance coverage
Individual condo insurance covers your belongings and may be able to help if someone sues you. Depending on what your association’s master policy includes, your individual HO-6 insurance policy may also cover your unit’s interior fixtures and appliances.
Here’s a breakdown of each part of a standard condo insurance policy.
Personal property
What it covers
Personal property coverage pays to replace your belongings if they’re stolen or damaged by an event listed in your policy. These “named perils” typically include scenarios like fire, wind and hail.
Personal property coverage usually has a deductible such as $500 or $1,000. This is the amount of a claim you need to pay out of pocket before insurance covers the rest.
A standard condo policy often covers valuables such as jewelry or artwork only up to certain limits. If you have expensive items, you may need to buy extra coverage. The insurance company will likely require an appraisal.
Example: A thief breaks into your condo and steals a TV, two laptops and a designer handbag, worth a total of $3,000. If you had a $500 deductible, insurance would reimburse you $2,500.
How much coverage you need
To figure out how much personal property coverage to buy, take stock of what you own. The best way to do this is by making a list of everything in your condo; home inventory apps can help.
Loss of use
What it covers
If you can’t live in your unit because of a covered event, your condo insurance policy can pay hotel bills and other expenses. This part of your policy is called loss of use coverage.
Example: You have to move out of your condo for a week during repairs for a burst pipe. An HO-6 policy could pay for hotel bills, restaurant meals and laundry expenses.
How much coverage you need
When choosing a loss of use limit, consider what would happen if your condo building burned down. How long might you need to live somewhere else, and how much would it cost to rent a place similar to where you live now? Consider bumping up your coverage limit if rents in your area are high. (Keep in mind that housing costs may be even higher if a disaster destroys many local homes.)
Liability and medical payments
What it covers
Two parts of an individual condo insurance policy can help if someone is hurt in your unit or you accidentally damage someone else’s property.
Personal liability coverage kicks in for pricey scenarios such as a lawsuit after your dog bites someone at the park. For this coverage to apply, you must be found responsible for the injury or property damage.
Medical payments coverage has a lower limit and can pay medical bills for someone hurt in your unit, regardless of whether you're at fault.
Example: While visiting your condo, a friend trips over an extension cord and breaks his wrist. Your medical payments coverage could help with his doctor bills.
How much coverage you need
Liability coverage limits for individual condo insurance usually start at $100,000. To decide how much you need, tally up the total amount you could lose if someone sues you. Include the value of your savings and investments, vehicles and other assets. Buy enough liability coverage to cover at least that amount.
Medical payments coverage typically starts with a $1,000 limit. You might want to raise this amount if you have a pet or frequently host guests in your home.
🤓Nerdy Tip
If you can’t get enough liability coverage to protect your assets, consider buying umbrella insurance. It’s a separate policy offering extra liability coverage beyond your existing policies.Dwelling or building property coverage
What it covers
Most personal condo policies include dwelling coverage, also known as building property coverage. This part of your policy covers your unit’s interior.
Whether you need building property insurance depends on how your condo association’s master policy works. Before buying individual condo insurance, check with your association to see which of the following coverage types is included in its master policy.
All-in coverage
With this option, your association’s master policy will cover built-in fixtures, appliances and cabinets in your unit. It will also cover improvements you make to these elements.
If your association carries this type of coverage, you may not need dwelling coverage on your individual policy.
Single entity coverage
Single entity coverage is similar to all-in coverage. However, it doesn’t include improvements or additions you make to your condo, only the original fixtures.
If your association has this type of coverage and you've upgraded your unit, having building property coverage is a good idea.
Bare walls coverage
This coverage includes the walls, floors and ceilings of the unit but nothing attached to them, such as carpets or appliances.
If your association has this type of coverage, you’ll need building property coverage for cabinets, ceiling fans and other built-in fixtures in your unit.
Building property coverage generally applies only to events specifically named in the policy, such as theft and fire.
Example: A fire in the unit next to yours spreads to your kitchen, destroying most of the room. Your condo association’s master policy offers only bare walls coverage. The building property coverage on your individual policy pays for new cabinets and appliances.
How much coverage you need
The amount of building property insurance you need will depend on whether you have to cover appliances, cabinets, carpets and light fixtures. Choose a limit high enough to replace any built-in fixtures your association’s policy won’t cover.
Loss assessment
What it covers
Sometimes your condo might suffer damage above the limits of its master policy. When that happens, each unit owner might need to help make up the difference. Loss assessment coverage can help cover this expense.
The master policy could also have a large deductible, and the association might split that cost among all unit owners. The association could ask an individual unit owner to pay the entire deductible if the damage originated in their condo.
Example: Your cat knocks over a candle and starts a fire that destroys part of the building’s roof. Say the master policy has a $10,000 deductible. The association might hold you responsible for that amount rather than asking all the building’s owners to chip in. Loss assessment coverage may cover this type of scenario.
This coverage typically applies only when your individual policy covers the cause of the damage in question. Say your association asks you to help pay for flood damage repairs, but you haven’t added flood insurance to your individual condo policy. In this case, loss assessment coverage wouldn’t help you.
Some policies also limit how much they’ll pay toward an association’s master deductible. If your association has a high deductible, this could be a costly coverage gap. Read your policy or check with your agent to make sure you have the coverage you expect.
How much coverage you need
Many condo policies include loss assessment coverage, while others offer it as an optional add-on. Even when it's included, the coverage limit is often fairly low (typically $1,000 or $2,000). We recommend adding more coverage, especially if you live in an older building or an area at risk of severe weather.
Ask your association the following questions:
- How high is the deductible on the master policy?
- Is there a fund to cover this deductible, or would the association divide the amount among all unit owners?
- Could a single unit owner ever have to pay the association’s whole deductible?
If unit owners might have to pay all or part of the master deductible, make sure your loss assessment limit will cover it.
Optional condo insurance coverage
If a basic HO-6 policy isn’t enough, you can buy extra coverage in the form of endorsements, or add-ons to your policy. Below are a few common scenarios that may require additional coverage.
You want enough coverage to replace damaged items
A standard policy covers your personal belongings on an actual cash value basis. That means if you file a claim for older items, the insurer wouldn't pay much because they’ve lost value over time. We recommend upgrading to replacement cost coverage to get enough money to buy brand-new items.
You're worried about water damage
Water damage is the most common cause of condo insurance claims, according to Pure Insurance. Condo insurance typically won't cover damage if a clogged drain or malfunctioning sump pump sends water into your unit. Adding water backup coverage can fill this gap.
You have valuable belongings
Certain pricey items like jewelry, art and firearms often have limited coverage under a basic condo policy. For example, even if your total personal property limit is $100,000, your policy may cover jewelry theft only up to $1,500. If your valuables are worth more than this sublimit, look into scheduled personal property coverage.
You're concerned about identity theft
Many people aren’t aware that their condo insurance policy could potentially help if someone steals their identity. Identity theft coverage can pay for legal bills, lost income or other recovery expenses. Learn more about whether identity theft insurance is worth it.
Your condo isn’t always occupied
A standard policy may not cover damage to a condo that’s left empty for more than 60 days. If you don’t live in your unit year-round or it’s empty while you’re waiting to move in, talk to your agent about vacant home insurance.
How much does condo insurance cost?
The average condo insurance cost is $510 per year, according to NerdWallet's rate analysis. Condo insurance rates vary depending on where you live, how much coverage you need and the deductible you choose. Learn more about how much condo insurance costs in your state.
How to buy condo insurance
Many companies that offer homeowners insurance also sell policies for condos. You can get quotes on insurers’ websites or by calling them.
Condo policies can be tricky to buy because there’s a lot of variation in state laws and association bylaws. Consider working with an independent insurance agent who can help you find the right coverage for your situation.
Below are some widely available condo insurance companies to consider. We’ve included the average cost of a policy when available, based on NerdWallet’s analysis of rates across the U.S.
Note that smaller regional insurers may also offer solid coverage and competitive rates. A local agent can help you find them.
Allstate
Allstate offers a variety of condo insurance discounts you may qualify for. Bundling condo and auto insurance could save you up to 21%, for example. Discounts are also available for autopaying premiums or switching from another insurer.
Average cost: $520 per year.
Amica
Amica offers standard and dividend condo insurance policies. The latter generally cost more upfront but could return up to 20% of your premium to you as a dividend. If you have a claim, Amica’s partnership with Contractor Connection can help you find a professional to do the repairs.
Chubb
Chubb offers coverage for high-end condos and co-ops. Its policies include $5,000 to $50,000 of loss assessment coverage, depending on the circumstance. Chubb aims to issue payment for approved claims within 48 hours.
Farmers
Farmers offers various ways to save on your condo policy. For example, discounts are available if you bundle multiple policies, have a security system or pay your premium on time for at least 12 months. Policies include loss assessment coverage in case your HOA asks all unit owners to chip in for a major expense.
Average cost: $720 per year.
Liberty Mutual
A Liberty Mutual condo insurance policy can cover your stuff for 30 days during a move, including in a storage facility. You can save on your premium by bundling policies or going at least three years without filing a claim. Installing protective devices in your home may also net you a discount.
Nationwide
Nationwide has several types of optional coverage to choose from. For example, you can buy extra insurance for valuables and for water damage from backed-up sewers and drains. You can also add Brand New Belongings coverage to your policy. This endorsement gives you replacement cost coverage for your belongings.
Average cost: $700 per year.
State Farm
State Farm's condo policies come with inflation protection, which raises your coverage limits to keep pace with rising costs. In most states, State Farm condo policyholders can sign up for a free Ting device. This smart plug monitors your home’s electrical network to help prevent fires.
Average cost: $400 per year.
Travelers
Travelers may give you a discount on your condo policy if your unit has smoke detectors, sprinklers or a home security system. The company also offers savings if you’ve bought your condo within the past 12 months. You can get extra coverage for valuable items like jewelry or fine art without an appraisal.
Average cost: $505 per year.
USAA
USAA condo insurance is available to active military, veterans, some federal workers and their families. One nice perk of USAA’s condo policies is that they cover your stuff on a replacement cost basis. That means more generous claim payouts than you’d get from many other policies. USAA can also pay up to $50,000 for loss assessments to repair damaged common areas.
Average cost: $795 per year.
Get home insurance quotes in minutes
Answer a few questions to see custom quotes and find the right policy for you.How to save on condo insurance
Here are three ways to pay less for condo insurance:
- Shop around. We recommend getting quotes from at least three insurance companies to find the best price for the coverage you want. Check rates once a year or when your circumstances change (such as getting married or divorced).
- Ask about discounts. You might be able to save if you bundle your condo and auto insurance with the same company. Some insurers offer discounts if your unit has safety devices like smoke detectors or burglar alarms.
- Raise your deductible. Only raise your deductible if you have enough savings to pay the higher amount in an emergency. Otherwise, the lower premium may not be worth it.
Frequently Asked Questions
Is condo insurance required?
Mortgage lenders generally require you to buy condo insurance. Having this coverage in place protects the lender’s financial interest during the length of your loan.
Even if you’ve paid off your mortgage or bought the property in cash, you might still need condo insurance. Many associations require owners to buy individual condo policies. They may also specify minimum levels of coverage.
Does condo insurance cover water damage?
It depends on the type of water damage. A standard condo policy will pay for damage from a burst pipe or other sudden, accidental event. But it won’t cover backed-up drains unless you add a water backup endorsement. Flooding from heavy rain, snow melt or storm surge isn’t covered either. Learn more about home insurance and water damage.
What's the difference between an HO-3 and HO-6 policy?
An HO-3 policy is the most common homeowners insurance policy, while an HO-6 policy is specifically for condos. An HO-3 policy insures single-family homes with coverage for the entire building, plus other structures like sheds. Because condo dwellers don’t own their building, an HO-6 policy covers only what's inside their unit.
Methodology
To find the average cost of condo insurance in the U.S., NerdWallet calculated the median rate for 35-year-old condo unit owners from multiple insurance companies in every ZIP code across all 50 states and Washington, D.C. Rates were rounded to the nearest $5.
Sample unit owners were nonsmokers with good credit living in a two-bedroom condo. They had a $1,000 deductible and the following coverage limits:
- $70,000 in dwelling coverage.
- $50,000 in personal property coverage.
- $300,000 in liability coverage.
- $30,000 in additional living expenses coverage.
- $1,000 in medical payments coverage.
- $1,000 in loss assessment coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
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Article sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- 1.Pure Insurance. Water Damage: The Most Common Cause of Loss for Condo Owners. Accessed Aug 3, 2026.
