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:

townhome insurance

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.

​In This Article



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:

  • Condominium Insurance: If your townhouse is in a planned community or there is a condominium association, you will need to purchase condo insurance, also known as townhome H06 Insurance. Your condo association will likely require it. 
  • Homeowners Insurance: If you own your townhome and there is no HOA, you need to get homeowner's insurance, also known as townhome H03 insurance. Your lender will require a homeowners insurance policy and may handle that for you through your escrow account.
  • Renters Insurance: If you are renting your townhome, regardless of whether there is an HOA in place or not, you need to get renters insurance. Your landlord may require proof of coverage when you sign your lease.

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.

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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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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.

  • Liability: If someone is injured or their property is damaged while visiting your home, any lawsuit fees will be covered. Your policy will cover repair or medical expenses up to your liability limit.
  • Personal Property: This section of your insurance policy covers any loss, damage, or destruction of your personal items up to your policy limit so long as the cause is a covered peril. That includes clothes, appliances, furniture, etc.
  • Loss of Use: If your home sustains damage to the point that you can't live there, your loss of use coverage will kick in. It pays for any costs above your normal monthly expenditures and includes temporary living fees, additional mileage, and extra food costs.

The types of damage typically covered include:

  • Fire and smoke
  • Lightning strikes
  • Wind and hail
  • Theft
  • ​Vandalism
  • ​​Falling objects

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.  

homeowners for townhouse

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 Town​home

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.
  • If you need condo insurance, get a copy of your HOA's policy, and understand where their coverage stops and where yours must begin.
  • If you need homeowner's insurance, gather information about your home (date built, square footage, condition).
  • Determine the date you need coverage to begin.
  • Spend some time researching insurance companies and comparing their policy coverage and costs. Or, trust Simply Insurance to do the work for you. Get a fast, simple quote for homeowner's insurance, condo insurance, and renters insurance. 
  • Fill out the application for the insurance company you chose to apply for coverage.
  • Pay your premiums and stay current. Letting your insurance lapse can be expensive if Murphy's Law strikes.

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 three companies or get your free quote for homeowners insurance

Or if you are renting your townhome get a renters insurance quote today.


Sa El

About the author

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 11 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. He is also an Official Member of the Forbes Finance Council, a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 11 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. He is also an Official Member of the Forbes Finance Council, a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

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