+120 more)
)
)
)
)
)
Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
Updated
Townhome insurance works like standard home insurance to protect your dwelling and personal belongings. But there isn’t a standard townhome insurance policy. The exact type of coverage you need depends on whether you own the townhome structure or only the interior living space.
Insurance for your townhouse may be a mix of your homeowner’s association’s (HOA) master policy and your own personal coverage. We’ll tell you how townhome insurance works, what it typically covers, and how much it costs.
Depending on who owns the townhome building, you may need a stand-alone homeowners insurance policy and coverage through an HOA master policy.[1]
Whether your HOA has a bare walls or walls-in policy affects how much coverage you need.
Asking about discounts, installing safety devices, and choosing a higher deductible are a few easy ways to save on your townhome insurance.
Townhomes are increasingly popular. Townhouses made up about 18% of all new single-family builds as of 2025, according to the National Association of Home Builders.[2] If you own or are considering buying a townhome, you need to understand how to properly insure it.
Townhome insurance policies often blend HO-3 insurance for single-family homes with HO-6 condominium insurance.[3] In many communities, townhomes are part of an HOA, which is responsible for shared structures and common areas. In others, the homeowner owns both the townhome and the land it sits on.
The coverage you need depends on your townhome’s ownership structure. If you have an HOA, it can have one of two types of policies:
Walls-in: Walls-in, or all-in, coverage, covers the exterior of your townhome and its interior structure. It will pay to replace or repair your interior walls, floors, ceilings, and fixtures if they’re damaged. It does not cover your personal belongings.
Bare walls: A bare walls, or walls-out, policy covers your townhome’s walls and outward, including the exterior structure and roof. Bare walls policies cover the exterior structure of your townhome, but not the interior.
Let’s say a fire damages your home, and your HOA has a bare walls policy. The HOA’s policy would pay to repair the roof and exterior damage, but you’d be responsible for repairing or replacing the interior.
Compare quotes from multiple insurers, starting at $362 per month.
A comprehensive townhome insurance policy is made up of four parts:
Dwelling pays to repair or rebuild the structure of your townhome if something damages it.
If your HOA has a bare walls master policy, your individual dwelling coverage may cover the interior of your unit, like your walls and fixtures.[4]
Personal property coverage pays to repair or replace your damaged or stolen belongings.
Personal property insurance covers things like your furniture, electronics, and collectibles. But most policies have coverage limits. You may need additional coverage, like a personal property endorsement or scheduled coverage, if you have anything particularly valuable.
Liability coverage protects you if someone injures themselves on your property or you cause damage to a neighbor’s belongings.
Your liability coverage policy would help cover medical expenses and any legal fees or settlements.
Loss of use insurance pays for your temporary living expenses if you can’t live in your home after a covered event.
Loss of use coverage helps pay for temporary housing, hotel stays, or extra food while your home is being repaired.
)
Townhome insurance policies don’t cover everything. While exclusions vary, townhome policies usually exclude the following:
Damage related to floods or earthquakes: As with standard homeowners insurance policies, townhome insurance policies won’t cover damage caused by floods or earthquakes. If you live in a high-risk area, you’ll need a separate flood insurance or earthquake insurance policy.[5]
Maintenance or damage due to wear and tear: Over time, your appliances, wiring, or plumbing systems may wear out. In general, homeowners insurance doesn’t cover damage from wear and tear.
Sewer or water backup: Townhome policies exclude damage due to sewer or water backups. But you may be able to add a sewer backup endorsement to your policy.
Damage covered by your HOA policy: Your policy won’t pay for damages and items covered by your HOA’s master policy.
Townhome insurance usually costs less than a stand-alone homeowners insurance policy because it works alongside your HOA’s master policy. How much you pay for townhome coverage depends on a variety of factors, including:
Location: If you live somewhere with a higher cost of living, you’ll pay more for insurance. If you live in an area prone to hurricanes or earthquakes, you’ll also pay more for coverage.
Risk factors: In addition to severe weather, theft and vandalism rates also affect your townhome premiums. Areas with more theft typically pay higher insurance rates.
Home age: In general, newer townhomes are cheaper to insure than older ones.
The table below highlights the average cost of townhome insurance for different property values, according to Compare.com data.
Coverage Amount | Average Monthly Premium |
|---|---|
| $200,000 | $174 |
| $300,000 | $239 |
| $400,000 | $303 |
Townhome insurance blends homeowners insurance and condo insurance. Condo insurance, also known as HO-6 coverage, covers properties that are part of condo associations. HO-6 policies cover only the interior of the units and personal belongings, but townhome coverage may extend to other parts of the structure.
Townhome owners may need either an HO-3 or HO-6 policy, depending on ownership structure and what the HOA master policy covers.
The table below highlights the coverage requirements for different property types.
Home Type | Ownership | HOA | Policy Type |
|---|---|---|---|
| Townhome | Partial/shared | Yes | HO-3 or HO-6 |
| Condo | Interior Only | Yes | HO-6 |
| Detached | Full | Not Typically | HO-3 |
Homeowners insurance policies for stand-alone, single-family homes differ from townhome policies in several ways. Homeowners insurance covers the entire dwelling and the land it’s on. It also covers other structures on the property, like fences and sheds.
But townhome insurance usually excludes shared structures and land. Your HOA’s master policy normally covers those.
)
You need to understand your HOA’s master policy in order to choose the right townhome insurance. If you have a mortgage, your lender also may have coverage requirements. Once you know what your responsibilities are, follow these steps to pick the right coverage:
Confirm your HOA’s coverage. Review your HOA’s master policy and confirm whether it’s walls-in or bare walls coverage.
Determine what dwelling coverage you need. Depending on your HOA’s master policy, decide how much coverage you need for your townhome’s structure. If you made upgrades or modifications, you may need a higher coverage limit.
Inventory your personal belongings. Create an inventory of your personal belongings. If you have any high-value items, you may need additional personal property coverage.
Choose a liability limit. After you figure out how much of the building you need to cover and take inventory of your personal items, choose how much coverage you need.
Compare rates. Rates vary by company, so request home insurance quotes from several insurers to make sure you get the coverage you need at the best price.
Find the coverage you need for your townhome at the best price.
You have plenty of ways to save on townhome insurance without sacrificing coverage. Here are some tips to help you find the cheapest home insurance rates:
Bundling your policies. Many insurers offer multi-policy discounts for bundling your townhome coverage with another policy, like auto insurance.
Ask about discounts. Most insurance companies offer a variety of discounts, including auto pay, loyalty, or claims-free discounts. Contact your insurance agent to learn more about available discounts.
Increase your deductible. Raising your deductible can lower your insurance premiums. But you’ll pay more out of pocket if you file a claim, so make sure you have some savings set aside.
Install safety features. Some insurance companies offer discounts for installing safety devices, like smoke detectors, sprinklers, or a security system.
Review your coverage. Review your policy regularly to make sure your coverage doesn’t overlap with your HOA’s master policy. If your HOA’s policy covers interior fixtures, you may save money by adjusting your coverage.
If you own or are thinking about buying a townhome, we’re here to help you find the right coverage. Check out the following answers to some common questions about townhome insurance.
It depends. If you own your unit and the building, you’ll need coverage for the dwelling coverage, personal property, personal liability, and additional living expenses. If your townhome is part of an HOA, check what its master policy covers to figure out the coverage you need.
Typically. Townhome insurance is often cheaper than standard homeowners insurance because the building shares some structural coverage. But costs can vary by location and the coverage you choose.
Sometimes. Some mortgage lenders require you to have your own townhome insurance policy to protect their investment. You’ll likely need a policy even if your HOA has a master policy for the building.
An HO-3 policy covers a residential structure, like a single-family home. HO-6 insurance is for condominiums and some townhomes. HO-6 policies cover the interior of the unit and personal belongings.
Homeowners insurance for townhomes usually covers your dwelling structure, personal property, personal liability, and additional living expenses. If you belong to an HOA, its master policy usually covers the roof, building exterior, and common areas.
Yes. You likely need a separate insurance policy for your townhome, even if your HOA covers your property. Typically, HOA master policies exclude coverage for the unit’s interior and your personal property.
)
Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
