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Townhome Insurance Policy
Townhome living is a great way for people to be homeowners who don't want the hassle of lots of upkeep and maintenance. Most townhomes are located in communities where the homeowner's association (HOA) takes care of many if not all the exterior maintenance and upkeep on the property. Townhome insurance is very similar to standard home insurance, but there are a few important differences.
The first and largest difference between townhome insurance and home insurance is in the amount of dwelling insurance that is required. Dwelling insurance is insurance for the actual structure that the homeowner is living in. Townhome insurance is unique, however, because most townhomes share at least one, if not two, walls with a neighboring owner. This lowers the amount of insurance required, especially if the home is bordered on both sides. In any shared wall situation, the owner of the property is still responsible for all studs in, and any interior ceiling, floor, or fixture that is damaged. In some cases, the Home Owners Association will even replace the roof of a townhome damaged by hail or any other covered peril. Each owner needs to confirm this with the HOA before assuming it is covered, because it varies from company to company.
Another minor difference between a townhome and home insurance policy is in the "Other Structures" coverage. Most townhome insurance quotes don't come with any Other Structures coverage. This coverage is meant to cover any outbuildings on an owner's property like the fence, pool, mailbox, detached garage, etc. The reason that this coverage isn't often included is because many townhome properties have a home owners association that will cover the other structures. For townhome owners that will be responsible for outbuildings and fences, it is crucial that Other Structures coverage is attained so the insurance will extend to these buildings.
The remaining standard coverage sections that are included in home insurance are also included in townhome insurance. Personal Property, Loss of Use, Liability, and Medical Payments to Others are all included in the typical townhome insurance quote, and most owners can expect to have this coverage in their policies.
The most common townhome insurance policy is called the HO6 policy. The HO6 insurance policy was specifically designed for condo and townhome owners where there were shared walls and home owners associations that cover many exterior perils. Most townhome insurance quotes will come in the form of an HO6 insurance policy. This policy is a named perils policy, and will cover the home and personal property for sixteen perils that are listed in the policy. Some companies will insure townhomes with an HO3 home insurance policy. The HO3 insurance policy is much more extensive and will protect the home for nearly all possible perils that can damage the home. The HO3 is definitely better coverage, but many townhome owners may not be able to find this type of policy for the home.
Whether an owner is protecting the home through an HO6 or an HO3 insurance policy, it is important that the owner knows the differences between the policies, knows that he or she is well covered, and knows that are many townhome insurance quotes and companies out there to choose from.