When you start looking to move into a town home the first thing that probably comes to mind is townhome insurance.
If not, it's fine, but you definitely need coverage because some lenders won't let you close on your home without it.
And here's the thing, you're likely asking yourself: "what is common insurance for a townhouse?"
Well, there are three different types of insurance that may apply to your townhome. How do you know which one to choose? Let’s get started.
Do I Need Home Insurance for a Townhome?
People living in townhomes are not legally required to have insurance. However, your landlord, condo association, or lender may require you to purchase insurance as part of your purchase or lease.
You will need one of the following, and the entity requiring the purchase is your clue to the type of policy you need to buy:
If you are in a situation that does not require insurance, we still recommend you consider getting a policy.
With superstorm incidents on the rise, you don't want to be left paying for damage to your home out of pocket.
THE SIMPLY INSURANCE WAY
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Get quotes and sign up online without talking to an agent. But, we are here if you need us.
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You can get home insurance coverage within minutes of getting your quotes and applying.
Condo Insurance vs. Townhome Insurance
Condominiums and townhomes look alike. There is no way to determine which is which simply by looking at them.
That's one reason why townhouse insurance can be particularly confusing, especially when you compare townhome insurance HO3 (homeowner's insurance) and townhome insurance HO6 (condo insurance).
We'll go into them in more detail in a moment to help ensure you get the right insurance.
What Does Townhouse Insurance Cover?
Now that you know what type of policy you need, you should understand what, specifically, townhouse insurance covers.
Most of these insurance policies cover liability, personal property, and loss of use up to your policy limit for covered perils.
The types of damage typically covered include:
As always, read your policy for specific coverage information. Some damage types, such as flooding and earthquakes, often require separate coverage.
What does that mean for the different types of townhome insurance?
If You Own Your Townhome
HO-3 insurance, or homeowner's insurance, covers single-family dwellings.
It insures the structure, its contents, and the land it's built on in case of a covered peril.
Homeowner's insurance premiums average about $1,211 per year.
If you own your townhome and do not live in an HOA community, this is the insurance policy you should purchase.
If You Rent Your Townhouse
Renter's insurance is created specifically for renters and has much lower coverages, focusing on liability and personal property. Your landlord's insurance covers the structure and grounds of your townhome.
On average, you can expect to pay anywhere from $5 a month to $18, depending on your location and coverage levels.
If you rent your townhome, regardless of whether you live in an HOA or planned community, this is the insurance policy you should purchase.
If a Condo Association Owns Your Townhome
HO-6 insurance covers the interior of your dwelling, and the HOA carries a policy covering the exterior structure, common areas, and community grounds.
Coverage for roads, walkways, swimming pools, and pathways are not your responsibility.
It’s worth noting that certain policies don't cover roofing. Some may argue that roofs are shared structures, and the HOA's plan should include them.
It is vitally important to understand what your HOA covers and what your condominium insurance needs to cover. This will affect your policy levels and, in turn, your monthly premium.
If you own your townhome and live in a planned or HOA community, this is the insurance policy you should purchase.
INSURANCE WHERE YOU LIVE
Home insurance by state.
How To Buy Townhome Insurance
Purchasing townhouse insurance is simple. Follow these easy steps:
- Determine the type of insurance you need—homeowners insurance, condominium insurance, or renter's insurance.
THE SIMPLY INSURANCE WAY
Home Insurance made easy.
Agents not required.
Get quotes and sign up online without talking to an agent. But, we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.
Coverage in minutes.
You can get home insurance coverage within minutes of getting your quotes and applying.
Taking Action
Townhome insurance can be very confusing if you don't understand the type of insurance you need: homeowner's insurance, condo insurance, or renter's insurance.
If you want to update your homeowners insurance for your townhome, we’ve done the hard work for you—check out the top four companies or get your free quote for homeowners insurance.
Or if you are renting your townhome get a renters insurance quote today.