What Insurance is Needed to Protect Your Townhome?

We may be slightly biased here, but protecting your home and personal belongings is important—and often required. Usually, selecting policies is pretty straightforward, but one question we often get is how to select the correct policy for your townhouse. For specifics on policies and what fits your exact situation, we always recommend you speak to your local insurance agent, but let’s cover some of the basics:

What is a Townhouse?

A townhouse is an older concept in housing, first introduced in Paris in the 1600s. However, in recent years, it’s seen a booming comeback. This home style was popular in dense urban areas, where life can be a little cramped. To accommodate the dense city populations, these homes are built vertically; they are often narrow, multi-story homes that share one or two walls with adjacent neighbors. Today, townhouses are seen in both big and small cities and even out in suburban areas. A townhouse is purely a style of residence, meaning its ownership can take several different forms, which then leads to some confusion on insurance policies.

What Type of Policy Do I Need?

So, you found the perfect little townhouse in a cute area you love, and now you must insure it. How? Well, that is actually based on the ownership status of the townhouse. You can fall under one of three types of policies:

• Homeowners Policy. This type of policy is for private homes. These are policies designed to protect you, your belongings, and the structure of the house. If you own a townhouse or have a mortgage on it, then you should look into a standard homeowners policy for your townhouse.
• Renters Policy. This policy is designed to protect you and your personal belongings while renting property from a landlord. The landlord will hold a policy on the dwelling and property, but these often do not cover your personal belongings.
• Condominium Policy. Some townhouses belong to a Condo Association. The Association will hold policies for the dwelling and shared spaces, but again, these policies do not protect you from the walls.

I Own My Townhouse

If the townhouse you live in is solely yours, even with a mortgage on it, then you should be looking into a homeowners policy. This policy is the standard policy for private single-family residences. It is designed to cover everything from the top down, wall to wall, and the property.  This policy covers things like:

• Dwelling and Other Structures. This covers the physical structure of the home in the event of a covered loss, such as fire, smoke, wind, hail, and lightning. “Other structures” refers to detached garages, fences, sheds, etc.
• Personal Property. This policy protects the things inside your home from theft, vandalism, or loss from another covered claim (such as a fire).
• Living Expenses. If you need alternate lodging while your home is being repaired or rebuilt after a covered loss, this will help with food, parking, and hotel fees—up to pre-set coverage and time limits.
• Liability Coverage. This is financial protection if a person is injured on your property.

I Rent My Townhouse

If the townhouse you are moving into is owned by a landlord you pay rent to, then you would want to look into a renters policy. These policies are not for property or dwelling, as the landlord will have policies in place that cover the physical structure and property for which you are renting. Renters policies instead protect you and your personal belongings. Personal property, living expenses, and liability coverage are all coverages you’ll find on most renters' policies. For example, in the event of a fire, the landlord’s policy will cover the structure loss, but it doesn’t always cover the things that were in the building. That is where renters' policies come in.

My Townhouse Belongs to a Condo Association

If your townhouse belongs to a condo association, then the coverages need to change slightly. Similar to a renters policy, the condo association will hold a policy that often covers any shared spaces (such as a lobby, pool, elevators, etc.) as well as the exterior of the home. Condo insurance is typically designed to protect everything within the walls of the unit. Personal property, living expenses, and liability coverages still apply in the same ways as the others listed here. One major difference is that condo insurance often also covers interior additions and alterations should you make a permanent structural change within the condo, such as adding a bathroom. No matter what type of policy you will need or if you need help navigating what coverage you should have, we’re here to help bring you peace of mind. Make sure to reach out to a local agent for a quote! ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information. The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time.  Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.  The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York.  Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time. Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.