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how your condo insurance rates are determined

There are many factors that can affect what you pay for condo insurance. We'll explain how your premium gets calculated and offer some easy ways to save on your condo coverage.

The (often delightfully affordable) cost of condo insurance

It's easy to lump condo insurance in with homeowners insurance at first. After all, both coverages deal with protecting a living space that you own. One of the advantages to condo ownership, though, is that you're usually only personally responsible for insuring the interior of your unit. With a house, meanwhile, you have to worry about the inside and outside of the structure, plus liability issues on the property.

Calculating your condo insurance premium

Here are some of the factors that your insurer might consider when deciding your condo insurance premium.

The rebuilding cost of your unit

Condo residents own and are typically responsible for everything in their unit from the wall studs in. And if this space were ever destroyed, the rebuilding cost is the amount it would take to get it back to its former glory. If you finance a mortgage on your condo, lenders often require you to have at least a percentage of this amount.

How much your HOA insures

In most condo communities, the homeowners association (HOA) insures the exterior walls of your unit, the building itself, and common areas like the lobby, gym, or pool. Your HOA coverage also tends to cover liability claims in common areas.

Some HOA policies, however, extend coverage to the structural elements inside your unit. If this is the case, you might need less overall condo insurance for yourself and can get a lower rate.

How much your belongings are worth

Since your HOA covers many of the damage and liability claims in the building, the main thing condo owners have to worry about is protecting their personal belongings. The HOA coverage probably won't protect your stuff, so it's up to you to make sure you have enough personal property insurance to replace your valuables. The more stuff you have to protect, the higher your premium could be.

Where you live

Living in an area prone to weather disasters can impact your rates for most types of insurance, including condo coverage.

The age and condition of your condo

If your place is old or a tad rundown, it could be more vulnerable to perils and bring a higher premium than a more modern unit.

Your pets

Luckily, most residential risks (like swing sets, pools, and trampolines) are only issues for traditional homeowners. One domestic peril that can affect condo dwellers, though, is a pet. The type of dog you have might increase your condo insurance rates, as could owning an exotic animal or other pet that poses a threat to others.

Your personal claims history

Not surprisingly, keeping a clean insurance track record can help you keep your rates down, while having a pattern of filing claims might nudge your premium in the opposite direction.

How to save on condo insurance

If your condo insurance premium isn't quite where you'd like it to be, don't fret. These are some steps you can take to help save:

  • Improve your credit rating. Most insurance companies look at your credit score when deciding on your premium.
  • Increase your deductible. Agreeing to pay more in the event of a claim can reduce what you pay monthly.
  • Install extra safety devices. Adding a burglar alarm, sprinkler system, deadbolt locks, and other features can help secure your abode (and your wallet).
  • Bundle your insurance policies. Insuring your condo and car with the same company can often score you some savings.
  • Look for discounts. From staying claim-free to just starting a policy online, there are tons of easy ways to get condo insurance discounts.

Ready to see how much you can save? Start your free condo insurance quote.

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