Condo Insurance Chicago, IL

Chicago is full of life and color. From the lakefront to the Loop and the neighborhoods of Lincoln Park and Wicker Park, every area has something special. Owning a condo here means enjoying the best of city life, but it also means protecting your home from the risks that come with it.

Over half of Chicago’s households are renter-occupied, which means many buildings share walls, systems, and common spaces. This could cause problems like leaks, fire, or water damage. On top of that, Chicago’s harsh winters and summer storms could also cause costly repairs.

Condo insurance (also known as an HO-6 policy) is designed to protect your personal unit, belongings, and liability in situations where your condo association’s master policy doesn’t cover the damage.

Key takeaways

• Condo insurance isn’t legally required, but often necessary: While Chicago law doesn’t mandate condo insurance, most owners end up needing it. Mortgage lenders typically require HO-6 coverage, and many HOAs may make this coverage mandatory to protect unit interiors and personal belongings not covered by the master policy.
• Condo insurance differs from home insurance: Condo insurance typically only covers your unit’s interior, personal belongings, and liability. Homeowners insurance (HO-3) typically covers the entire property, including the structure and land.
• Policy covers interiors, belongings, and liability: HO-6 policies protect your condo’s interior (walls, flooring, cabinets), personal property (furniture, electronics, clothing), liability (if you cause damage or injury), and loss of use (temporary housing). However, typical exclusions can include earthquake, flood, sewer backups, normal wear and tear, and tenants’ property.
• Ways to lower condo insurance premiums: Chicago residents could cut costs by installing safety features, disaster-proofing units, raising deductibles, and comparing quotes across insurers.

Is condo insurance (HO-6) mandatory in Chicago, Illinois?

In Chicago, condo insurance is not required by law; however, HO-6 insurance may be required by your HOA or mortgage lender:

• Mortgage requirement: If you’re financing your condo through a bank or lender, they may require you to have an HO-6 policy. Lenders typically want assurance that their investment – whether it’s residential or commercial – is protected.
• HOA requirement: Many Chicago condo associations require owners to carry their own condo insurance. While the HOA master policy provides coverage for common areas such as roofs, hallways, elevators, and exteriors, coverage does not extend to the interior of a unit or to personal belongings. Many associations set this rule to help prevent disputes over financial responsibility when damage occurs.

Coverage requirements may vary. Consult with a licensed insurance producer before making determinations.

How is condo insurance different from home insurance?

Many first-time buyers assume condo insurance is the same as home insurance. However, this isn’t the case. Here's how the two differ:

• Home Insurance (HO-3): Homeowners insurance in Chicago, IL typically covers the entire property – interior, exterior walls, roof, foundation, and often detached structures such as garages or sheds.
• Condo Insurance (HO-6): Condominium insurance typically focuses on the interior of your unit (walls, flooring, cabinetry, appliances), plus your personal property and liability. The HOA’s master policy typically covers the rest.

In Chicago, where many condo complexes may feature shared amenities like gyms, this division could be important to know. 

You don’t have to worry about insuring the elevator or lobby chandelier – that’s the HOA’s job. However, if your hardwood floors get damaged by a burst pipe, this is where your HO-6 policy typically steps in.

How much is the average condo insurance in Chicago, IL?

The average cost of condo insurance in Chicago is $825 [1] per year (or $69 per month).

Several local and personal factors come into play when insurers calculate your premium. Here's a look at what could influence your HO-6 insurance quotes in Chicago, IL:

• Location: Where your condo sits on the Chicago map matters a lot. If you live in an area of Chicago prone to natural disasters (such as wildfires or floods) or with higher crime rates, you may have higher insurance premiums.
• Building Type: Older buildings or luxury complexes with expensive fixtures may drive up premiums.
• Coverage limits and deductibles: Your choices for coverage and deductibles can affect what you pay. Higher coverage limits may increase your premium, while selecting a higher deductible can sometimes lower it. Adding optional coverages, such as flood or earthquake protection, may also raise your overall cost.

Other factors, such as owning certain dog breeds, could raise your rates due to higher liability risks. Additionally, condos in areas prone to flooding or high wind exposure may cost more to insure.

To help you understand better, here’s how condo insurance costs might look in Chicago, but keep in mind that coverage can vary depending on the underwriting carrier. Consult with a licensed insurance producer to determine your eligibility and explore available options.

Urban areas

In dense city neighborhoods of Chicago, such as the Loop, Near North Side, or Lincoln Park, condo insurance costs could be higher. Rates could be higher due to risk of theft, vandalism, and higher real estate value.

Lakeside or higher-exposure zones

If your condo is closer to Lake Michigan or in parts of Chicago exposed to high winds (e.g., eastern-facing units with large windows), your premiums could be higher. The additional risk of wind, storm, or water damage could slightly push rates upward.

More typical inland neighborhoods

In many of Chicago’s less centrally located residential neighborhoods, such as those further from the lake or in less densely populated parts of the city, the average condo insurance premium might be lower. These areas generally face fewer extreme weather exposures and slightly lower crime risks than high-density downtown zones.

High-risk or special hazard zones

Certain areas could present added risks, such as:

• Flood damage: If your condo is near the lake, you may want to look into flood insurance. Flood insurance is a separate insurance policy, often recommended for coastal residents through the National Flood Insurance Program (NFIP) and private insurers.
• Historic districts or older buildings: If your building is older or uses less resilient materials, replacing or repairing it might cost more, which could raise your premium.

What does condo insurance cover in Chicago?

Condo insurance in Chicago helps protect you in multiple ways, such as:

• Dwelling (Interior Structures): This part of your policy covers the interior of your condo – walls, built-in cabinets, countertops, and flooring. For example, if a kitchen fire damages your cabinets or a pipe bursts and ruins your hardwood floors, this coverage may help cover the cost to repair or rebuild.
• Personal Property: This part of your policy helps cover personal belongings inside your condo. It can include furniture, clothing, appliances, and your heating or cooling systems. If you own expensive items such as jewelry, fine art, or collectibles, you might need to purchase extra coverage to fully protect them.
• Personal liability coverage: Liability coverage helps protect you financially if someone is injured on your property and pursues a claim or lawsuit. It could help pay for legal costs, settlements, and medical expenses.
• Loss of use (or additional living expenses): If your condo becomes unlivable after a covered event, this coverage helps pay for temporary living expenses, such as hotel stays or meals. 

Chicago condo insurance coverage exclusions

Every insurance policy, whether residential or commercial, typically comes with exclusions – things the policy doesn’t cover. In Chicago, the most common residential or commercial condo insurance exclusions are:

• Flood damage: Standard HO-6 policies don’t cover flooding caused by heavy rain, overflowing lakes, or sewer backups. In Chicago, where basement flooding is often a risk, flood insurance may be worth exploring.
• Earthquake damage: Though rare in Illinois, earthquake damage is not covered under a regular condo policy. You’ll need a separate earthquake endorsement if you’d like this coverage.
• Wear and tear: Insurance covers named perils, or events that are typically outside of your control, and are often clearly named in your policy. Outdated plumbing, old wiring, or gradual deterioration won’t typically qualify for claims.
• Tenant’s property: If you rent out your condo, your policy won’t cover your tenant’s belongings. They’ll need their own renters insurance.
• Pest infestations: Damage caused by termites, rodents, or other pests is typically excluded and often requires preventive maintenance rather than insurance coverage.

Add-on coverage options

While standard condo insurance covers the basics, there are some important add-ons worth considering:

• Scheduled personal property: Items such as heirloom jewelry, camera equipment, or vintage collectibles may need separate scheduling to be fully covered.
• Umbrella insurance: This insurance policy offers extra liability coverage beyond your typical condo, auto, or other insurance policies. It may apply when claims exceed the limits of your underlying policies, offering additional protection against large liabilities, lawsuits, and judgments.
• Loss Assessment Coverage: HOAs sometimes pass special assessments to cover building repairs after a loss. This add-on could help you pay your share.

Tips to lower your Chicago condo insurance premium

Condo insurance in Chicago doesn't have to break the bank, especially if you know a few tricks to keep your premium low. Here are some smart and simple tips that may help lower your condo insurance policy.

• Install preventive devices: Smoke detectors, carbon monoxide alarms, water leak sensors, and smart locks could help you qualify for discounts. Eligibility and qualifications for these programs might vary by insurer.
• Upgrade your unit: Insurance companies typically prefer condos that are built to withstand the elements. Upgrading to fire-resistant materials, reinforced windows, or updating your plumbing could reduce the likelihood of damage and may unlock discounts.
• Raise your deductible: Consider raising your deductible, which could lower your monthly bill. However, make sure you could cover that amount out of pocket if a covered event happens.
• Don't just auto-renew; shop around: It's easy to let your policy auto-renew every year, but that could cost you. Instead, obtain at least three quotes when your renewal date approaches. Different insurers weigh things such as Chicago ZIP codes, proximity to a fire station, or your condo’s age in different ways, so shopping around could reveal a lower rate for the same (or better) coverage.
• Strengthen your credit: In Illinois, your credit score could influence your premium. Pay bills on time, keep balances low, and avoid new debt before policy renewals. 

Still have questions?

Buying a condo in Chicago comes with plenty of decisions. If you’re still sorting through the details, these quick answers could help clear things up.

Is it better to own a condo or a house in Chicago?

It depends on your lifestyle and budget. Condos are often more affordable and easier to maintain, while houses typically offer more space and independence. In downtown Chicago, many prefer condos for convenience and amenities.

What happens if my condo burns down?

If your condo is damaged or destroyed by fire, your HO-6 policy covers repairs or rebuilding of your unit’s interior and replaces personal belongings. The condo association’s master policy usually covers the building’s structure.

Do condominiums in Chicago hold their value?

Value depends on location, building condition, and local market trends.

How much should you save before buying a condo in Chicago?

Plan to save at least 10% to 20% of the purchase price for your down payment, and budget additional funds for closing costs, insurance, and monthly condo fees. You may want to also set aside extra money for routine maintenance and unexpected special assessments.

Are condos in Chicago more expensive to insure?

Not necessarily. Condo insurance (HO-6) usually costs less than homeowners insurance as it covers only your unit’s interior and belongings, not the whole building or land.

Sources

1. Information from NerdWallet. 

Figures reflect averages from publicly available sources as of November 2025.

This article is for informational purposes only and was compiled from sources not affiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. For any insurance-related decision, please consult your licensed insurance producer.