Condo vs. Townhouse Insurance: What’s the Difference?

What’s the difference between condo insurance and townhouse insurance? Interesting question. When looking to purchase a home, it is important that you understand the legal and physical differences between insurance for various forms of property. This is because the distinctions between them affect and determine how much insurance you need.

Condo vs. Townhouse Insurance: What's the Difference?

Among the popular housing options, condos and townhouses are one of them, and each of them has different advantages and disadvantages and needs different forms of insurance coverage.

When you have an understanding of the differences between these insurance types, you can know which policy suits your needs better. Without further ado, let us delve deeper into exploring more.

What is Condo Insurance?

Condo insurance, also known as HO-6 insurance, is a special type of insurance that covers the needs of condominium owners. Furthermore, this form of insurance offers protection to the personal property and liability of the owner, as well as the interior part of the condominium unit.

Frankly speaking, the purpose of condo insurance is to cover the gaps left open by the condo association’s master quote since condo owners have separate or individual units.

What Does Condo Insurance Cover?

Here is what condo insurance usually covers:

  • Loss of use.
  • Interior walls and fixtures.
  • Liability protection.
  • Personal property.

What Does It Not Cover?

Condo insurance does not typically cover the following:

  • Damage to common areas.
  • Exterior or structural damage.
  • Damage from certain natural disasters.

Pros and Cons

Here are the advantages and disadvantages of condo insurance:


  • Personal property coverage.
  • Affordable premiums.
  • Interior protection.
  • Loss assessment coverage.
  • Liability coverage.
  • Peace of mind.
  • Additional living expenses.
  • Convenience
  • Customizable coverage.
  • Flexibility in coverage limits.


  • Additional policies required.
  • Rising premiums.
  • Overlap and confusion.
  • Claims process.
  • Deductibles
  • Depreciation of properties and items.
  • Limited exterior coverage.
  • Coverage limits.
  • Complicated policy terms.
  • Association liabilities.

Who Needs a Condo Insurance Policy?

A condo insurance policy is important and beneficial for every condo owner to safeguard their interior unit features, personal property, liability, and other units that are not covered under the association’s insurance quote.

What is Townhouse Insurance?

Townhouse insurance can sometimes look like condo insurance or homeowners insurance, depending on whether the owner of the townhouse has any responsibility for the exterior part of the home.

Normally, the exterior part of the unit is owned by the owner of the townhouse and requires a more comprehensive quote to look and work like a traditional home insurance policy.

What Does Townhouse Insurance Cover?

Here is what townhouse insurance generally covers:

  • Liability insurance.
  • Building and structural coverage.
  • Additional living expenses.
  • Personal property.

What Does It Not Cover?

Just like other forms of property insurance, here is what townhouse insurance does not cover:

  • Intentional damage.
  • Natural disasters.

Pros and Cons

Here are the advantages and disadvantages of townhouse insurance:


  • Customized coverage.
  • Personal property protection.
  • Affordability
  • Liability protection.
  • Legal fee coverage.
  • Peace of mind.
  • Loss of use coverage.
  • Community agreement.
  • Structural protection.
  • Customizable quotes.


  • Claims process.
  • Overlap uncertainty.
  • Reliance on the financial health HOA.
  • Additional costs.
  • Deductibles
  • Potential for high premiums.
  • HOA complications.
  • Different coverage standards.
  • Coverage gaps.
  • Restricted control over policy requirements.

Who Needs a Townhouse Insurance Policy?

Townhouse owners who need protection for the whole structure of their property need a townhouse insurance policy. These exteriors include liability, personal belongings, land, and the exterior.

Condo vs. Townhouse Insurance: What’s the Difference?

When choosing between condo and townhouse insurance, it is essential that you understand the differences in how they work and who they cover. For a better understanding, here are the differences between condo insurance and townhouse insurance:

AspectsCondo InsuranceTownhouse Insurance
CoverageInteriors, and personal property of the propertyEntire building structure and personal property
OwnershipCondo ownersTownhouse owners
CostUsually less expensiveUsually more expensive
Master Policy DependencyWorks with the master policyLess dependent
Personal Property CoverageYesYes
Liability CoverageYes (within the unit)Yes (entire property)
Policy CustomizationSimpler, but less flexibleMore personalization options
Natural Disaster CoverageNeeds additional coverageNeeds additional coverage

Now that you know the differences between these types of insurance and which one is suitable for property owners, you can purchase a policy from a good insurance provider.


How does the cost of condo insurance compare to townhouse insurance?

Condo insurance is generally cheaper and less expensive than townhouse insurance. This is because it offers coverage for a lesser part of the physical structure of the home. On the other hand, townhouse insurance may cover the land and the exterior of the building.

Can I customize my condo or townhouse insurance?

Yes, policyholders can customize or personalize their condo or townhouse insurance policies. What’s more, they can add or include endorsements and riders to cover certain assessments, valuable personal property, identity theft, and water backup.

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