Best Michigan Condo Insurance

The insurance picture in condominiums is similar. All residents of a complex share the responsibility of insuring the development, paying for some insurance through their homeowners association (HOA) dues. But, residents also need their own condo insurance policy in many cases to protect their personal living space.

Use this guide to navigate your condo coverage needs and find the best condo insurance in Michigan.

The average condo insurance in Michigan is $374 per year or about $32 every month. Rates for common amounts of coverage ranged from $25 to $44 monthly.

Personal condo insurance plans are known as HO-6 policies to insurance companies. The cost of HO-6 insurance in Michigan will vary based on many factors, such as location, policy details, and more.

As a result, it’s difficult to give a blanket average cost for the whole state. You won’t know your exact cost until you get a quote, as rates vary from company to company on top of the geographic and personal factors that affect prices.

Nevertheless, the numbers below represent the average cost of condo insurance in Michigan at some commonly desired coverage amounts.

Annual and monthly rates climbed as the amount of coverage increased. You’ll usually always pay more for more insurance coverage. The difference between $20,000 – $49,999 in coverage and $100,000+ in coverage, the highest and lowest tiers analyzed, was about $233 per year, which is $19 more monthly. 

This isn’t that drastic of a discrepancy compared to the difference in the price of homeowners insurance amounts in the state.

Most Michigan condo residents won’t need $100,000 of coverage anyways unless they live in a very high-end condo or own over $100,000 worth of items.

Condo insurance in Michigan covers unit owners in several ways from possible sources of damage called perils. Some of the most common covered perils that residents turn to insurance for include theft, vandalism, water, wind, and fire damage. 

If any of these perils damage your property, your insurance company can reimburse you. The coverages laid out in your policy are as follows:

To get the best personal condo insurance in Michigan, you’ll need to understand your coverage needs, which includes your association’s master policy. Once you know how much insurance you need, you should compare quotes to find the best deal.

Since condo residents share ownership of the grounds, condo associations typically have insurance policies that cover building exteriors, amenities, and common areas, called master insurance plans. You help pay for this insurance plan with your HOA dues.

The nature of your association’s master policy can influence your personal condo coverage needs. Some HOA plans are”walls-out,” meaning their coverage stops at the doorstep of your unit. Nothing inside your unit is protected. Other times, master policies are “walls-in” or “all-in.” These policies cover the permanent features and surfaces in your unit that came with the condo when you bought it, like the floor, countertops, and light fixtures.

You may not need dwelling coverage in your personal condo insurance if you have a “walls-in” or “all-in” master policy that covers your unit features. This can save you money on your condo insurance. 

Be aware, though, that some master policies that cover your unit fixtures only cover the features that come with the unit. This means that if you have made upgrades since you bought your condo, such as putting in new countertops, appliances, or floors, your HOA plan may not cover the value of these upgrades. In this case, you should still get dwelling coverage in your plan.

You should also note how your policy covers you from damage. Policies cover personal belongings and some property damage in one of two ways: at either actual cash value or replacement cost.

Actual cash value coverage factors in depreciation for your damaged items, meaning your insurer will pay you less for a damaged item the older it is. You won’t recoup what you paid for the thing. This contrasts replacement cost coverage, which enables your provider to reimburse you what you paid for the item when replacing it.

Although replacement cost coverage is preferable, actual cash value coverage is always cheaper. Some carriers may even offer endorsements for extended or guaranteed replacement cost options that will reimburse you even more after damage.

Comparing quotes is essential to getting cheap condo insurance in Michigan. Beyond that, you can take some extra steps to save even more money, such as raising your deductible and changing your coverage amounts.

Your deductible is the monetary amount damage must exceed before your insurance company covers costs in a claim. You choose your deductible when you get a policy. Typical condo insurance deductibles range from $500 to $2,000.

Choosing a deductible on the higher end will result in lower monthly premiums than if you choose a lower one. A higher deductible means you must cover more property damage out of your pocket before requesting your insurance company’s help. Providers prefer this and reward policyholders who choose higher deductibles with lower premiums.

You should know what discounts are available to see how you can qualify for them. Carriers offer a variety of discounts based on personal factors and other variables. Common discounts include:

Discounts vary slightly by provider, so it’s always good to ask which ones you can qualify for when quoting. Bundling your policies, which is housing multiple insurance policies in one place (such as condo and auto), is often the biggest commitment but can also result in the most savings. You may save 10% to 20% off your premiums if you choose to bundle.

Several variables influence average Michigan condo insurance costs. Some of the most prominent factors are your location, condominium characteristics, and policy details.

Condos in damage-prone locations, like floodplains and crime-prone neighborhoods, can have higher condo insurance rates. Any location where you’re more likely to experience property damage will probably have higher rates. Conversely, you may experience lower premiums if you’re within a certain distance of a fire station or hydrant.

Older buildings can have higher insurance rates. Dated construction is much more likely to have wear and tear, like aging roofs and leaky pipes that lead to property damage. Also, older buildings can lack safety measures and security systems that many newer buildings have that help them limit crime, property damage, or both.

High-end buildings with expensive fixtures and features can cost more to insure if you account for these in your policy’s dwelling coverage, as you’ll need higher dwelling coverage limits than someone with a smaller, less luxurious condo.

Along the same lines, your policy details can also affect rates. Opting for higher coverage limits in any part of your policy will cost more. Additionally, raising or lowering your deductible can change your premiums.

The law doesn’t require condo owners to carry insurance on their units, but mortgage lenders and condo associations may require residents to get condo insurance to satisfy their rules.

Mortgage lenders put insurance requirements in their home loans to protect their investments. If you purchased your condo with a mortgage, your lender will require you to maintain an HO-6 policy, or they will force-place insurance on you. Force-placed insurance is more expensive and less comprehensive than standard condo insurance, so be sure not to let your policy lapse.

Some condo associations want unit owners to keep condo insurance policies regardless of their loan status. Having residents maintain personal coverage in addition to the HOA master plan further limits liability for all unit owners and the association.

You need to compare your options when getting condo insurance quotes in Michigan to save money and protect yourself best. It helps to research companies and know their offerings, but you can save time and effort with the help of an independent insurance agency like Clovered.

We partner with the top Michigan condo insurance companies, and we can find you a plan that works with our online quoting platform. All you need to do is enter basic information about yourself and your condo, and you can compare choices in minutes.

You can also contact our team of licensed, in-house agents ready to help you quote at 833-255-4117 during business hours. You can also email us any questions at agent@clovered.com.