This is where Americans pay the most for condo insurance – it’s neither California nor New York
Americans looking to buy a condominium or co-op this spring should consider the cost of insurance before signing on the dotted line. And new analysis shows where you choose to live will greatly influence how much you can expect to pay to protect yourself.
A new report from Insurance Website Advisor calculated the average cost of condo insurance, or HO-6 insurance, in each state. The analysis revealed that Florida was by far the most expensive state for condominium insurance.
Residents of Sunshine State condos and co-ops pay an average of $ 964 per year for condominium insurance. That’s almost double the national average of $ 506 and well over three times the price of the cheapest state of Utah, where condo residents pay an average of just $ 269 per year. AdvisorSmith’s analysis was based on data from the National Association of Insurance Commissioners.
Overall, southerners pay significantly more to insure their condominiums and co-ops than people living in other states. The AdvisorSmith analysis found that 11 of the 15 most expensive states for this form of insurance were located in the south, including the other four states in the top five besides Florida: Texas ($ 790), Louisiana ( $ 748), Oklahoma ($ 631) and Mississippi ($ 600).
Subject to severe weather events
“There are certainly many factors taken into account when determining condo insurance, but the location of these particular states seems to play a major role,” the report notes. In particular, all of these states are highly prone to severe weather events, including hurricanes and tornadoes. As the report explains, most of the top 10 natural disasters, in terms of damage costs, were hurricanes that hit southern states.
Meanwhile, the cheapest states were those less prone to disastrous weather events, as well as the less populated areas. Besides Utah, other affordable states for condo insurance were Wisconsin ($ 280) and Iowa ($ 295).
Of course, other factors influence the cost of HO-6 insurance, including the size of the deductible, the characteristics of the condo development, and the homeowners association’s own insurance policy.
Unlike traditional home insurance, an HO-6 policy only covers what is inside the walls of your unit and not the structure itself. As such, it is designed to fit into the development’s own insurance policy, so a condominium with a more protective policy will allow more affordable individual policies for each of its residents.
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