How Much Does Condo Association Insurance Cost? 2026

Quick Answer: Condo association insurance runs about $3,500 to $7,500 per year for a small association of 10 to 25 units and $40,000 to $100,000 or more for a high-rise, based on the premiums carriers have quoted across our own association book. No national or Illinois source publishes an average. The price follows the building's insured value, the master policy basis, building age, claims history, and the deductible.

On this page

Cost by community size • What Illinois law requires • Cost by master policy basis • What drives the price • How to lower it • FAQ

Condo association insurance cost by community size

Condominiums carry the most expensive master policies because the association insures the building itself. These are the ranges carriers have quoted across our own book of association business:

Community	Typical annual premium	Per unit, per year
Small condominium (10 to 25 units)	$3,500 to $7,500	$280 to $375
Mid-size (26 to 75 units)	$7,200 to $15,000	$200 to $275
Mid-large (76 to 150 units)	$13,200 to $24,000	$175 to $220
High-rise (300 or more units)	$40,000 to $100,000+	$150 to $300+

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These are the condominium rows from our HOA insurance cost guide: ranges of carrier-quoted premiums across the Pro Insurance Group association book, for communities with adequate reserves and no significant losses in the prior three years. They are not quotes. No national or Illinois source publishes an average master policy premium, so there is no outside figure to set beside them.

To find your own per-unit cost, take the annual premium from your declarations page and divide it by the number of units. Divide again by 12 for the share of each owner's monthly dues that goes to insurance.

Whatever your association pays now, it has probably gone up. In an April 2025 survey by the Foundation for Community Association Research, 93% of respondents said their property and casualty premium rose at the last or current renewal, and 71% raised regular assessments to cover it.

What Illinois law requires

Part of your premium is not a choice. Section 12 of the Illinois Condominium Property Act sets what a condominium association's insurance must include:

Coverage	What the Act requires
Property	At least the full insurable replacement cost of the insured property, less deductibles. It covers the common elements and the units, including the bare walls, floors, and ceilings.
Ordinance or law	Demolition and increased cost of construction, together at least 10% of each insured building's value or $500,000, whichever is less.
General liability	At least $1,000,000, or more if the board judges it necessary.
Fidelity bond	Required for an association with six or more dwelling units, covering the funds the association holds plus its reserve fund.
Directors and officers	Required, at a level the board finds reasonable unless the declaration or bylaws set one.
Deductible	The Act sets no maximum. The board may pay it as a common expense, assess it to the owner who caused the damage after notice and a hearing, or require the affected owners to pay it.

Source: 765 ILCS 605/12. Your declaration and bylaws can require more than the Act does.

Lenders add their own rules. For a unit to qualify for a Fannie Mae loan, the master policy has to cover 100% of the estimated replacement cost with a deductible of no more than 5% of the coverage amount, and the association has to carry at least $1 million of general liability. Projects with more than 20 units also need fidelity or crime coverage. (Fannie Mae Selling Guide B7-3-03, B7-4-01 and B7-4-02, August 5, 2026.)

Cost by master policy basis

The single biggest coverage decision is how far into each unit the master policy reaches. The broader the basis, the higher the premium:

Master policy basis	Relative cost	What it covers
Bare-walls-in	Lowest	Structure to the unfinished drywall
Single-entity	Moderate	Adds original builder-installed fixtures and finishes
All-in (all-inclusive)	Highest	Nearly all built-in elements, including some owner upgrades

In Illinois the Act sets the floor: the master policy has to reach the bare walls, floors, and ceilings of each unit and the fixtures the developer installed, and it need not cover improvements an owner adds. Beyond that, the basis must match your governing documents and what owners carry on their HO-6 policies. Our master policy guide explains each option, and our condo association insurance page covers the full coverage stack.

What drives your condo association premium

Units and total insured value

More units and a higher building replacement cost mean a larger policy, though per-unit cost usually falls as the community grows.

Master policy basis

All-in coverage costs more than bare-walls because the association insures more of each unit.

Building age, construction, and amenities

Older buildings, combustible construction, pools, elevators, garages, and clubhouses all raise the premium through more exposure to defend and repair.

Claims history and location

Prior property or liability claims and catastrophe-prone locations push rates higher, while a clean loss run earns better pricing.

Deductibles, limits, and fidelity requirements

Higher deductibles lower premium, while higher liability limits and lender-required fidelity coverage add to it.

How to lower your condo association insurance cost

Start with the master policy basis: if your governing documents allow single-entity rather than all-in, you may not need to insure every owner upgrade at the association level, as long as owner HO-6 policies fill the gap. Raising the master deductible lowers premium, and keeping roofs, plumbing, and common systems well maintained reduces the claims that drive renewals up.

Bundling property, liability, directors and officers, fidelity, and a commercial umbrella with one carrier usually beats piecing them together. As HOA and community association specialists, we place associations with programs direct buyers cannot reach and make sure the board is covered without over-insuring.

Condo association insurance cost FAQ

How much does condo association insurance cost per year?

Across our own book of association business, carriers have quoted about $3,500 to $7,500 per year for small condominiums of 10 to 25 units, $7,200 to $15,000 for 26 to 75 units, $13,200 to $24,000 for 76 to 150 units, and $40,000 to $100,000 or more for high-rises. No national or Illinois source publishes an average.

How much does the master policy cost per unit?

Divide the annual premium by the number of units. Across our own book that works out to about $280 to $375 per unit per year for small condominiums and $175 to $220 for communities of 76 to 150 units. Per-unit cost usually falls as the community grows because fixed costs spread across more owners.

Does all-in coverage cost more than bare-walls?

Yes. Bare-walls-in is the least expensive because the association only insures the structure to the drywall. Single-entity costs more by adding original fixtures, and all-in is the most expensive because it covers nearly all built-in elements inside each unit. The basis should match your governing documents and owner HO-6 policies.

Why did our condo master policy premium increase?

Common drivers are rising building replacement costs, recent property or liability claims, aging roofs and plumbing, higher reinsurance costs, and added amenities. You are not alone: in an April 2025 survey by the Foundation for Community Association Research, 93% of respondents said their premium rose at the last or current renewal.

How can our association lower its insurance cost?

Align the master policy basis with owner HO-6 coverage so you are not over-insuring, raise the master deductible, keep the building well maintained to limit claims, and bundle property, liability, D&O, and fidelity with one carrier. An association specialist can place you with programs direct buyers cannot reach.

What insurance does Illinois law require a condo association to carry?

The Illinois Condominium Property Act (765 ILCS 605/12) requires property insurance for at least the full insurable replacement cost, general liability of at least $1,000,000, directors and officers coverage, and a fidelity bond for associations with six or more dwelling units. Your declaration and bylaws can require more.

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Reviewed by Neal Fusco, VP Commercial Lines

25+ years specializing in HOA, condo, and community association risk across Illinois and 40+ states.

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