When do you need insurance for a townhouse?

While the law does not require home insurance, if you have a mortgage, your lender will likely require you to carry a homeowners policy. If your townhouse is part of a condo association, the association may also require you to have coverage.

How does insuring a townhome work?

If you own the townhouse, the type of policy you need depends on whether your home is part of a condo association. Condo associations have master insurance policies covering the building, common areas the residents share, and grounds. So, if something happens to the exterior of your home, the condo association may cover it. However, you're still responsible for everything that happens from the drywall in, and a homeowners policy for your townhome covers what your condo association doesn’t. Learn about condo insurance coverages and how condo insurance works.

If your townhouse isn't part of a condo association, that means you're also responsible for the structure and the land on which the builders built your home. In order to insure your townhome’s structure, you’ll need a homeowners insurance policy.

What's the difference between a condo and a townhouse?


A condo is a unit that's part of a larger building like a high-rise or garden-style community. Condos have shared public spaces such as hallways, pools, gyms, and courtyards to which all residents have access. The condo association owns and manages the building, shared spaces, and grounds. The residents own the individual units. Depending on the ownership structure, a condo could also be classified as a townhome.


A townhouse may also be a condo, depending on the ownership structure. Townhouses typically have more than one story and are connected to the house(s) next door, much like a rowhome. Some townhouses are part of a condo association, making them a condo, and others aren't.

If a townhouse is part of a condo association, the association owns the building, shared spaces, and grounds. The residents own the interior living space. Townhouses that aren't part of a condo association function like detached single-family homes. Not only do residents own the interior living space, but they also own the building and the land the house is on.

How much does insurance for a townhouse cost?

Your rate for a homeowners insurance policy on your townhome depends on many variables, including your location, characteristics of the home, and insurance score. Learn more about factors impacting the cost of home insurance.

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