Having condominium insurance is essential for anyone who owns a condo. Having this type of insurance helps to protect condo association members from common costs that are often out of their hands. These include damages, personal liability, and much more. But how much does condo insurance cost on average? As it turns out, the answer is not that simple.
First, let’s take a look at what condo insurance is and what this type of insurance plan typically covers.
What Is Condominium Association Insurance?
Condominium association insurance is an important policy for condo association owners to have. It most often covers the condo grounds and all of the necessary obligations and liabilities that these associations typically face. This insurance policy typically helps cover the structure of the building and common areas as well as basic liabilities.
The association’s policy, however, may or may not extend to the inside of your unit. The coverage is very dependent on the type of condo you own, the size, what state you are in, etc. These unique factors all play a part in the type of condo association insurance that you will end up needing.
The main aspects of most condominium association insurance policies include the following.
Liability Protections
The liability protection in a condo association’s insurance policy may help cover legal or medical costs if the association is hit with a lawsuit. These lawsuits could be a result of personal injuries on the premises, accidents, etc. The liability of the association in the case of a missed detail or lack of proper signage could end up costing you huge in the long run – much more than the cost of a comprehensive insurance plan.
Property Coverage
The property coverage in your plan helps provide protection against covered perils for the common areas of the building that you share with all the other residents, like the roof, elevator, basement, courtyards, or walkways.
In some cases, the association’s insurance may help protect the bare walls, floors, and ceiling of your condo. You would then be responsible for covering things like kitchen cabinets, appliances, bathroom fixtures, and any plumbing and wiring in your unit with your own insurance policy.
Other times, the association’s coverage may help protect your condo as it was built, including fixtures such as the original tub and appliances. In this case, you would likely be responsible for the cost of replacing any upgrades in your unit.
There are a wide variety of other coverage options that may be needed for your personal situation, so be sure to reach out to an insurance expert in order to know where you stand and what policies you need to be fully covered.
How Much Does Condominium Association Insurance Cost?
The cost of condominium association insurance does not have a one-size-fits-all answer. In reality, the cost of condo association insurance varies widely based on the unique factors of your own condo grounds.
For example, condo insurance is more expensive in states prone to natural disasters, as the risk of catastrophic property damage is higher. The cost of living, the area that the property is located in, what state it is located in, and many other factors can influence this cost. This is why it is essential to work with a condo insurance professional in order to get the right plan at the right cost. Without this guidance you could end up paying for a plan that you either don’t need or that doesn’t cover you where you need to be covered.
Generally speaking, however, the average cost of condo insurance is $506 per year. It is important to note that the difference between the highest and lowest rates in the country varies widely, with the most expensive being over $1k a month on average. This illustrates how different conditions and unique properties across the country can result in a variety of condo association insurance plans with unique coverage details tied into them.
If you are in need of condominium association insurance, don’t use guesswork to get the insurance coverage you need. If you want to get the right plan at the best possible cost, make sure you consult a condo insurance professional in order to get the proper inspections and guidance for every step in the process.
Get Condominium Association Insurance From JMG
JMG Insurance agency strives to make insurance as easy as possible for their valued clients. Their agency was built on the principles of providing superior customer service and quality insurance solutions for our clients.