How to Get Homeowners Insurance for a Townhouse or Condo
Buying or living in a townhouse comes with a unique set of responsibilities — including the right kind of home insurance. Whether your townhouse is part of a condo association or fully owned, understanding how to get insured can save you time, money, and stress. This quick guide walks you through how to get home insurance for a townhouse, how it differs from condo insurance, and what to know before you buy coverage.
Understand How Townhouse Insurance Works
There isn’t one single “townhouse insurance” policy. Instead, the type of coverage you need depends on how your home is owned.
If you own your townhouse and it’s not part of a condo association, you’ll need a standard home insurance policy.
However, ff your townhouse is part of a condo association, your coverage works more like condo insurance (HO-6) by protecting everything inside your unit while your association handles the exterior and common areas.
| Situation | Type of Policy | What It Covers |
|---|---|---|
| You own the entire townhouse and land | Homeowners Insurance (HO-3) | The structure, land, and personal property |
| You own only the interior; the exterior is managed by an HOA | Condo Insurance | Interior, belongings, and liability |
| You rent your townhouse | Renters Insurance | Personal property and liability |
| You’re a landlord renting out your townhouse | Landlord Insurance (DP-3) | The building, liability, and loss of rent |
Review What Your HOA or Condo Association Covers
If your townhouse is part of an association, review their master policy carefully. Ask your HOA for a copy of the master policy and review it with your insurance agent to identify coverage gaps. This coverage usually includes:
- The building’s exterior (roof, walls, siding)
- Shared spaces (sidewalks, parking lots, pools, etc.)
- Landscaping and common maintenance
While you do enjoy these protections, keep in mind that you’re still responsible for everything inside your walls, such as flooring, cabinets, upgrades, and personal items.
Know What’s Covered by Your Townhouse Policy
Understanding the coverage your townhouse will receive is also important.
While coverages can be similar, individual coverages will vary. Knowing what you should receive is important, so that you don’t end up with coverage gaps when enrolling:
| Coverage Type | What It Does | Why It Matters for Townhomes & Condos | Real-World Example |
|---|---|---|---|
| Dwelling Coverage | Repairs interior structures (walls, floors, fixtures) after damage from fire, storms, or vandalism. | Shared walls and connected units mean one incident can impact multiple homes. | A neighbor’s kitchen fire spreads through a shared wall — your dwelling coverage pays for interior repairs. |
| Personal Property Coverage | Replaces belongings like furniture, clothes, and electronics after theft, fire, or another covered loss. | HOA policies don’t protect your personal items, even in shared buildings. | A burst pipe from an upstairs unit ruins your furniture and laptop — your policy helps replace them. |
| Liability Protection | Covers medical bills or legal fees if someone is injured in your home or you damage another’s property. | Slip-and-fall risks or shared walkways make liability coverage essential. | A guest slips on your stairs and breaks an arm — liability protection helps cover medical expenses. |
| Loss of Use | Pays for hotel stays, rentals, and meals if your home becomes unlivable after a covered loss. | Repairs in shared buildings can take longer, making temporary housing vital. | After a storm damages your roof, your family stays in a hotel while repairs are completed. |
Some protections are less universal. For example, while flood insurance is an important consideration for everyone, you’re likely to find more homes with this protection near water sources than those who live in drier regions.
Here are a few less common ways a home insurance policy can protect your townhouse with a rider or endorsement, or by being supplemented with additional coverage:
| Optional Add-On | What It Does | Why It’s Smart for Attached Homes | Example |
|---|---|---|---|
| Flood or Earthquake Insurance | Protects from natural disasters often excluded from standard policies. | Shared foundations and structures increase risk during floods or quakes. | Flash flooding damages your lower level — flood insurance covers repairs. |
| Water Backup or Sewer Line Coverage | Covers water damage from backed-up drains or sump pumps. | Plumbing issues in shared systems can quickly spread damage. | A clogged main line floods your bathroom — this coverage pays for cleanup and repairs. |
| Equipment Breakdown Protection | Pays for the repair or replacement of major systems and appliances. | Shared utility setups can add strain to key systems. | Your HVAC unit shorts out after a power surge — this coverage handles replacement costs. |
| Identity Theft Restoration | Helps recover your identity and restore finances after theft. | Shared WiFi or digital access points increase exposure risk. | After a data breach through your building’s shared network, this coverage funds recovery services. |
Get the Right Amount of Coverage
The goal is to cover what you own, not what your HOA already protects. If you own the structure and land, insure the full replacement cost of your home. If you only own the interior, insure the cost to rebuild the inside and replace personal property.
Tips for Accurate Coverage:
- Use a replacement cost estimator (not market value).
- Inventory personal belongings with photos or apps.
- Review limits yearly for inflation and renovations.
Research The Cost of Home Insurance for a Townhouse
The average cost of townhouse insurance varies by state and ownership type, but here are the key factors:
- Location: Storm, flood, or theft risk in your area
- Home features: Roof age, wiring, and materials
- Credit and claims history
- Coverage level and deductible amount
Townhouse owners in HOA communities often enjoy lower premiums than detached homeowners because the master policy reduces risk exposure.
Keep in mind that, depending on your property and HOA, you may have a smaller home policy because of the master policy as well. These factors reduce cost while giving you proper protection and peace of mind.
Compare, Apply, and Finalize Your Policy
No matter which type of policy works best for you, be sure to compare home insurance quotes before you sign up with any brand.
Failing to do so can cost you hundreds, if not thousands, of dollars in premiums each year.
Once you’ve chosen the best provider for your needs at the lowest possible cost, here’s how you can get everything in order:
- Submit your townhouse details (address, square footage, year built, etc.).
- Provide HOA or condo association information if applicable.
- Select deductible and coverage limits.
- Sign and pay your first premium.
Your insurer may inspect your home before finalizing coverage, especially for older buildings or custom renovations.
Keep Your Townhouse Home Insurance Policy Updated
No matter what, you can count on life changing. As it does, so too should your insurance. Review your coverage whenever you:
- Renovate or remodel.
- Add new valuables or furniture.
- Change mortgage lenders.
- Rent out your property.
Keeping your policy current ensures you’re never underinsured.
Find Home Insurance Quotes for Townhouses
Whether you’re living in a connected townhouse or a condo-style community, protecting your investment starts with the right coverage.
At Free The Insurance, we help homeowners compare top-rated carriers, understand coverage options, and find affordable rates tailored to their property type.
Our partnerships help homeowners in Texas, Missouri, Tennessee, and Colorado find condo insurance, home coverage, or whatever type of coverage best suits their property.
If you’re ready to get started, get a home quote today and compare top-rated carriers near you with just a few clicks.
Sources:
NewHomeSource. Accessed December 2025.
