What does townhouse insurance cover?
When it comes to insurance for your townhouse, the type of policy you purchase will dictate what’s covered. For example, coverage needs look different for owners and renters.
Standard homeowners policies include the following coverages:
Coverage for the home’s structure
If a covered event damages your townhome, like a hailstorm or other natural disaster, dwelling coverage will help you pay for repairs. Notably, this protection doesn’t cover floods or earthquakes.
Coverage for personal property
Personal property coverage can help you buy replacements for items damaged during a covered event or stolen items. For example, if a fire destroys your closet, your insurer may help you pay for new clothes. But this doesn’t cover exceptionally expensive items, like jewelry.
Liability coverage
If someone sues you for property damage or bodily injuries, liability coverage can help pay for your legal defense.
Additional living expenses
Also known as loss of use coverage, additional living expenses coverage helps you pay for a comparable living situation if your house incurs damage that makes it temporarily unlivable.[2]
If you’re the owner of your townhouse
If you own your townhouse, you’ll need a standard home insurance policy. While this isn’t a legal requirement, mortgage lenders often require borrowers to carry this coverage. Even if you’ve paid off your townhouse, you can still choose to protect this important asset with a townhouse insurance policy.
A standard homeowners insurance policy will include coverage for the structure of your home, personal belongings, liability coverage, and additional living expenses. This is the same type of coverage available for single-family homes.
If your townhouse property is part of a homeowners association
If your townhouse is part of a homeowners, condo, or townhouse association, your HOA will have a master insurance policy that covers shared spaces. But you’ll likely still need to get your own insurance to cover what the master policy doesn’t.
Your personal condo or homeowners insurance policy should include coverage for structures not covered in the master policy, your personal possessions, liability coverage, and additional living expenses.
Before getting condo insurance, find out what your HOA’s insurance policy covers. The coverage included in the overarching policy will influence what coverage you need.[3]
If you rent a townhouse
If you rent a townhouse, your landlord might require you to buy a renters insurance policy. You can also choose to purchase this type of policy to protect yourself, even if your landlord doesn’t require it.
A standard renters insurance policy should include coverage for personal possessions, liability, and additional living expenses. You don’t need coverage for the home’s structure.[4]
)
)
){kind=logo}
){kind=small}
){kind=small}
)
)
){kind=small}
){kind=small}
)
)
){kind=logo}
){kind=small}
){kind=small}
)
)
)
)
)
)
)
)
