Special Risks of Condominium and Townhouse Owners

Traditional homeowners insurance policies are designed for single family homes, and don't cover the unique needs of condominium and townhouse owners. Relying on the insurance purchased by your homeowners association could lead to costly coverage gaps in the event of a theft or damage to your condominium or townhouse.

Homeowners Associations and Insurance

A condominium is essentially an apartment or townhome that has access to a shared living space with other units; in many cases, this shared space consists of a swimming pool, tennis courts or a common lounge area. Condominium owners pay an annual fee for the upkeep of the grounds, access to these areas and condominium insurance.

In general, the complex's homeowners association will purchase insurance for the entire building complex and insure these types of homes. However, each homeowner is responsible for insuring their individual belongings, as well as any part of their unit that is not covered by the group policy. This is one of the major risks of condominium insurance: Ensuring that your home and your belongings are adequately protected.

Condo and Townhouse Insurance

To purchase the correct amount of insurance, you'll need to meet with an agent who can help you identify what parts of your unit are insured by the master association policy and what parts you'll need to insure on your own. This agent can also help you to determine what you'll need to cover with separate condo insurance. This insurance will help fill the gaps between the policy that covers your personal belongings, and the group homeowners association policy.

Determining Your Exact Condominium Insurance Needs

To determine your current condominium insurance coverage, refer to your association documents. When you purchased your property, you were likely provided with copies of the association documents that define your rights, legal operations and the associations' operating procedures. These papers should contain the exact amount of coverage you have on your condominium, as well as what, specifically, it covers.