The Lowdown on Townhouse Insurance

So you’ve decided to become a homeowner but opted for the route that doesn’t include the hassles of exterior maintenance and shoveling. Great move, but you still haven’t escaped the common risks that go along with all types of homeownership. No matter how your happy place is structured, it’s still at the mercy of Mother Nature, vandals, fire, and more. Fortunately, there is a type of home insurance known as townhouse insurance that comes in to save the day.

Townhouse insurance helps homeowners enjoy peace of mind and a sense of security within their home, knowing that it’s protected. An independent insurance agent can help you get set up with the right townhouse insurance for your unique needs. But first, here’s a closer look at this important coverage.

What Is Townhouse Insurance?

Regardless of where your particular home is located, townhouse insurance is essentially an agreement between the townhouse owner and an insurance company in which the insurer agrees to cover financial losses relating to damages and liabilities. Only the specific perils stated in the policy will be covered by the insurance company. Townhouse insurance is designed to help protect owners from losing their home should disaster strike.

What Does Townhouse Insurance Cover?

As you’re well aware, your townhouse is more than just a collection of walls and ceilings. Your home is also composed of the belongings stored within and around it, as well as the people (and pets) living inside and the guests you may have over. That’s why townhouse insurance is designed to protect all these essential elements.

Standard townhouse insurance packages typically include the following coverage:

Dwelling coverage: This townhouse insurance aspect covers your unit’s structural components like the walls, ceilings, and floors.
Personal property coverage: Covers your personal belongings like furniture, clothing, electronics, knickknacks, silverware, etc. that are stored within the unit from perils such as fire or theft. Property stored off premises, such as in a storage unit, is often covered as well but comes with a lower limit.
Liability coverage: Covers legal expenses such as attorney and court fees in the event you are sued for bodily injury or property damage to a third party. Settlements you’re ordered to pay if you lose the case are covered as well. Coverage extends to all members of the family living within the townhouse, including pets.

These three components compose the core of townhouse insurance packages. Working together with an independent insurance agent is a great way to get the right amount of coverage in each category for your unique home.

What Does Townhouse Insurance Not Cover?

Like every other kind of insurance out there, townhouse insurance comes with a list of specified covered perils, as well as non-covered perils. Becoming familiar with what your townhouse insurance policy doesn’t cover can save you the hassle of filing claims that are bound to get denied, and in the event of certain non-covered natural disasters, help you find the right kind of policy to protect your home.

Townhouse insurance does not cover the following perils:

Certain natural disasters (i.e., floods, earthquakes, and mudslides)
Maintenance-related losses
Wear and tear damage (i.e., failure of the homeowner to maintain upkeep)
Insect damage or infestations
Damage from war or nuclear fallout
Business-related liability

If you run a business out of your home, townhouse insurance won’t cover any liability-related mishaps. To protect your unit against flood or earthquake damage, you’ll need a flood insurance or earth movement policy. Flood insurance policies are only available through the National Flood Insurance Program, which is a part of FEMA. Townhouse owners located in areas prone to flooding may want to seriously consider getting a policy.

What About Townhouses that Are Condos?

Sometimes a townhouse isn’t just a townhouse, it’s also a condo. If your townhouse belongs to a homeowners association or condo association, then you might need a slightly different kind of insurance policy due to your increased responsibilities as a homeowner.

Owners of townhouses that are also condos are responsible for covering a percentage of property located in what’s known as “common areas,” as well as their individual unit. This property may include shared hallways, roads, and sidewalks, elevators, gyms, and any other shared/community rooms or facilities.

If you’re confused about what kind of coverage you need, talk to your independent insurance agent. They’ll be able to get you set up with the right type and amount of coverage for your specific townhouse — even if it is technically a condo.

What Are the Benefits of Townhouse Insurance?

Your townhouse is more than just the place you hang your hat, it’s also your personal sanctuary and/or dojo, so it deserves the proper protection. Having adequate insurance coverage can prevent a townhouse owner from going bankrupt and losing their home following a particularly costly disaster. Standard townhouse insurance packages provide coverage for many common threats to the home.

Townhouse insurance typically provides coverage for the following perils:

Theft
Vandalism
Explosion
Fire and smoke
Water damage
Aircraft or vehicle damage
Riots
Falling objects (and trees)
Certain natural disasters (i.e., windstorms, hail, lightning, and blizzards)

Your independent insurance agent can help you review your townhouse insurance policy to answer any remaining questions about your coverage. They’ll also be able to help you figure out whether you’ve got enough coverage, or if you should purchase more.

How Much Does Townhouse Insurance Cost?

Many factors influence the cost of a townhouse insurance policy including the size and location of your home, the value of the structure and the contents inside, and any upgrades you’ve made. Owners of townhouses located in areas prone to severe weather or other risks like crime will be required to pay more for their insurance policies than those who live in calmer, safer areas.

While it’s hard to offer an exact figure without knowing your unique living situation, your townhouse insurance policy’s premium may fall anywhere in the low hundreds to just over a thousand range annually. Unless you’re buying a particularly expensive townhouse in a major city, though, you can typically expect to pay towards the lower end of the spectrum for coverage. An independent insurance agent can help find more exact quotes for you.

Benefits of an Independent Insurance Agent

Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working for you. Find an independent insurance agent in your community here.

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