From snow removal in the winter to access to a swimming pool in the summer, condo living can provide Minnesota residents with many desirable conveniences. If you own a condominium in the North Star State, you can benefit from the protections of a good condo insurance policy.
Independent agents in Minnesota can help you find the best policy to cover your home. These agents are free to work with multiple condo insurance companies so they can shop around to find the coverage you want at the lowest offered price. Find an independent insurance agent near you to learn more.
What Is Condo Insurance?
Condo insurance, which is also called H06 insurance, is a type of homeowners insurance policy that is designed to meet the specific coverage needs of condominium owners.
These policies can work in conjunction with your HOA’s master insurance policy to provide you with all the coverage you need to protect your finances if disaster strikes.
Do You Need Insurance for Your Condo in Minnesota?
Condominium owners are not required by law to carry an H06 insurance policy. However, if you are still paying on a mortgage or are taking out a home equity loan, your lender will most likely require you to have this coverage until your loan is paid in full.
Whether or not you are required to have a condo insurance policy, it is a good idea in Minnesota. It can cover you against property loss or damage if your home is impacted by a severe weather event like:
- Tornadoes: An average of 45 tornadoes touch down in this state per year
- Severe storms: This includes hazards like thunderstorms, windstorms, and hailstorms.
- Harsh winter weather: This includes damage caused by heavy snows, ice accumulation, and frozen pipes.
As a condominium owner, you will also be required to pay monthly HOA fees to your homeowners association (HOA). A portion of these fees goes toward the purchase of a master insurance policy, which also provides you with coverage.
What Is the Difference between Condo Insurance and an HOA Master Policy?
As the owner of a condominium, your home is protected by two different policies: your condo insurance and your HOA master policy. These policies each work in different ways.
- Condo (H06) insurance: This is something you need to purchase yourself. It provides walls-in coverage for your condo, as well as personal liability coverage and displacement coverage.
- HOA master policy: This is purchased by your homeowners association. It provides coverage for the structure of your condo’s building as well as property and liability coverage for common areas like lobbies, clubhouses, fitness centers, and other amenities.
Your ideal condo insurance policy will perfectly complement your HOA master policy so that you have all the coverage you need without paying for the same coverage twice.
How Much Does Condo Insurance Cost in Minnesota?
Condo insurance is far more affordable than homeowners insurance. This is because it does not need to include coverage for the structure of your building or its common areas.
Let’s compare the average cost of homeowners insurance with the average cost of condo insurance in Minnesota:
- Minnesota average home insurance cost: $1,348 a year
- Minnesota average condo insurance cost: $299 a year
As you can see, the average cost of condo insurance in this state is around one-quarter of the average cost of home insurance. Your actual price for coverage will be based on factors like:
- Your condo’s size in square feet
- The crime rate and common weather hazards where your condo is located
- The security measures taken by your condo community
- The estimated value of your personal property
- The amount of personal liability coverage you are purchasing
- The size of your deductible
As a good rule of thumb, you can significantly lower your rates for coverage by bundling your condo insurance with another policy like car insurance or boat insurance or by qualifying for any other potential condo insurance discounts.
Why Compare Customized H06 Insurance Quotes in Minnesota?
The method used to compute condo insurance rates is different for every insurance company. That is why if you contact a few competing providers to get a quote, it is likely that each will come back with a different price. Sometimes, these differences can be significant.
When you take the time to compare a few customized quotes before choosing a policy, you can be certain that you are getting your policy at a good price. Independent insurance agents in Minnesota make comparison shopping easy.
What Does Condo Insurance Cover in Minnesota?
Your H06 home insurance can cover your personal property and protect your finances with three different types of coverage.
- Contents insurance: This covers your personal belongings if they are lost or damaged by hazards like:
- Property crime, such as burglary or vandalism
- Fire, smoke, or firefighting efforts
- Covered severe weather events
- Falling objects
- Loss of use insurance: This covers your additional living expenses if damage caused by a covered event leaves your condo uninhabitable. Until repairs are made and it is safe to return home, this insurance can cover:
- The cost of staying in a hotel, rental home, or other accommodations
- A meal allowance if your accommodations do not include a kitchen
- Moving and storage costs
- Pet boarding fees
- Additional mileage if you must travel further to get to work
- Other related expenses
- Condo liability insurance: This covers your liabilities if you or someone in your household unintentionally cause another person to suffer injuries, property damage, financial losses, or other harm. It can cover costs related to:
- Legal counsel and defense
- Court costs
- Mediation costs
It is important to be aware that condo insurance does not cover flood damage. Many properties in this state have a significant risk of sustaining flood damage in the next 30 years, particularly in the southeastern part of the state and near the banks of the Minnesota River.
If your condo is on the ground level and you live in an area that is prone to flooding, you may want to consider supplementing your condo insurance with a flood insurance policy. Affordable contents-only coverage is available through the National Flood Insurance Program (NFIP).
What Are the Best Condo Insurance Companies in Minnesota?
The best condo insurance companies in Minnesota are the ones that have a solid reputation for providing reliable coverage, responsive customer service, and competitive rates.
Local independent agents have teamed up with many of the area’s most highly rated insurance providers so you can be sure that any H06 policies your agent recommends to you are offered by insurance providers you can count on.
Why Shop for Condo Insurance with a Minnesota Independent Insurance Agent?
Because they live and work in your community, independent agents understand the hazards you face as a property owner in your Minnesota city. These agents can shop around to find a policy that includes all the coverage you need for your condo at a competitive price.
Find an independent insurance agent near you and set up an obligation-free consultation. Your agent can answer your insurance-related questions and can provide you with a selection of customized condo insurance policies and quotes that you can review and discuss together.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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