How much does condo insurance cost?
Southern states typically have higher premiums, with one seeing rates more than 90% above the national average.
Nationwide, the average cost of condo insurance is $506 annually, according to AdvisorSmith. However, the rates condo owners pay vary widely based on state, with some paying premiums that are more than 90% above the national average.
A slew of factors can influence the cost of a condo policy, including how densely the area is populated, exposure to natural disasters and rate of criminal activity in the vicinity, AdvisorSmith noted.
Overall, Utah has the lowest annual average cost for condo insurance, coming in at $269. That is 47% below the national average, the research site reported. Also enjoying lower-than-average rates are Wisconsin ($280), Iowa ($295), South Dakota ($307) and Hawaii ($310). With the exception of Hawaii, states with the lowest averages nationwide tend to be among the least populated. Additionally, they have fewer chances of experiencing natural disasters, which also leads to lower rates in these locales.
Florida sees the highest average annual costs of condo insurance, coming in at $964. That is 91% above the national average, AdvisorSmith reported. This comes on the heels of recent findings that Florida has the strongest building codes among coastal states.
In addition to Florida, Texas ($790), Louisiana ($748), Oklahoma ($631) and Mississippi ($600) see the highest annual costs, on average, for condo insurance. AdvisorSmith pointed out that these are all southern states, which are more prone to severe weather, including hurricanes and tornadoes. In fact, 11 of the 15 most expensive states for condo insurance were in the South. Southeastern states were heavily represented on the list for most expensive states, occupying nine of the top 15 spots.
Coverage limit also plays a role, with policies containing limits of less than $14,000 having an average annual cost of $373. On the other side of the spectrum, policies with coverage limits in excess of $100,000 had an average annual cost of $857.
Join the expert editors behind FC&S Expert Coverage Interpretation as they talk through some of the most interesting and complex questions they’ve received on condo insurance in a free webinar, “Condominiums: Who Insures What?,” happening on June 23 at 2 pm ET. Attendees will have the opportunity to enter to win a 1-year subscription to FC&S Expert Coverage Interpretation ― a $1,200 value. Register here.
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