Find Affordable Homeowners Insurance

Homeowners Insurance Coverage and Townhouses

Home Insurance for Townhouse

Homeowners who live in a townhome, townhouse, or rowhouse are typically not required to purchase an insurance policy. Nevertheless, there are times when your mortgage lender, homeowner’s association, or landlord will require you to get coverage. Depending on your specific situation, you may need renters insurance, condo insurance, or standard homeowners insurance (HO-3). Even if you are not required to buy an insurance policy, it is crucial that you consider getting on to protect yourself and your family in case of an emergency.

Defining A Townhouse

Having a townhouse does pertain to the type of ownership and not by the structure itself. This means, as a townhouse owner, you may or may not have an interest in common areas of the property such as the garden, swimming pool, or recreational area. Still living in this kind of property needs insurance just like living in any other types of structure.

Why Do You Need To Get A Townhouse Insurance?

By law, you are not required to purchase a homeowner’s insurance if you are living in a townhome. Still, there are specific reasons why you may need to purchase a policy. A renter’s or condo insurance does not include dwelling coverage, typically, your townhouse association or landlord will have this covered in their own insurances.

To Protect Your Assets

The best reason to get a homeowner’s insurance is to provide protection for your assets. While you do not have to worry about the structure itself, any damage to your personal property may be substantial if you do not have insurance. If you want to protect your items in the event of a covered peril, having an insurance policy is your best choice.

To Fulfill Requirements

In most cases, insurance is required either by your lender or your homeowner’s association. If you have the townhouse mortgaged, you are most likely required to get an insurance policy to protect their investment.  If you do not provide or let your coverage lapse, the financial institution that provided your mortgage will arrange insurance for you or will charge you for a policy.

However, there may be disadvantages to this type of arrangement. For example, the cost of the insurance may be more expensive than just buying it directly from the company. Also, it is often that these insurance policies will only be limited to structural damage to cover possible damage to the lender’s investment alone.

What Insurance Should I Buy?

The type of insurance that you should purchase will depend on your living arrangement. For example, renting the townhouse may require different coverage than if you own the townhome. You may need either a renter’s insurance, a condo insurance, or a homeowners insurance (HO-3). A condo insurance does not provide protection for certain parts of the structure, example, the roof.

Additionally, no matter what type of insurance you will get, you must consider some add-ons. For example, if you live in a flood prone area you may want to consider getting a flood coverage.

If you are just renting, you may want to consider getting a renters insurance policy. This type of insurance will match your landlord’s policy in case there is an emergency. It will still provide enough coverage for your personal property like clothing, furniture, and electronics.

Some may also need to buy condo insurance if they are living in a shared area where there are condo association requirements. This insurance is also known as HO-6 coverage and should provide enough protection for your personal property, liability, and physical damage.

On the other hand, if you live in a townhome that you own, you may want to consider an HO-3 or standard insurance. This will provide protection for liability, structure, personal property, loss of use, and medical payment.

Leave a Comment