Townhouse Insurance is similar in most respects to Condominium Insurance. It covers loss to your townhouse and your personal property, and it protects you from personal liability should someone get injured on your property.
What Townhouse Insurance Is Not
Although similar to Condominium Insurance, Townhouse insurance is a separate entity (just as Townhouses and Condominiums are different things). A townhouse owner needs to insure the structure and the lot. Townhouse insurance can also cover trees, shrubs, plants, the lawn, and unattached structures on the lot. Condominium Insurance applies to unit interiors (and their contents) only, not the lots, as those elements owned by the condo association.
Some townhouse associations carry an association master policy to cover the common areas, but such master policies typically do not cover the townhouses themselves.
Townhouse insurance is for the owner, not a renter. If you are renting a townhouse, you should purchase Renters’ Insurance to cover your belongings and personal liability.
Who Needs Townhouse Insurance?
As the name implies, Townhouse Insurance is designed for those who own townhouses, even if the property is rented out or used only part of the year.
Things To Think About
It is very important to check with the townhouse association to find out what insurance coverage, if any, they already have. Not all townhouse associations are required to carry a master insurance policy. It varies from location to location. If there’s no master policy, then the townhouse owners may need to purchase basic single family Homeowner’s Insurance.
You may be able to lower your premium if you’ve installed fire and anti-theft protection devices.
Some townhouse buyers may want to purchase Mortgage Protection Insurance that guarantees the mortgage will be paid off if the insured dies prematurely.
Some companies offer “lose of use” coverage that reimburses you for living expenses if you have to live somewhere else temporarily while your townhouse is being repaired.
Your personal belongings are covered up to certain limits. If you have especially valuable items (like jewelry, furs, stamp or coin collections, antiques, etc.) you may want to purchase additional coverage. You might also want to consider additional coverage for earthquakes and floods, as these usually aren’t covered in most basic policies.
Let your insurance company know if you’re a pet owner. This could affect the amount of your premium.