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Townhouse insurance confuses buyers because two townhouses on the same street can need different policy types. If your townhouse is part of a condominium association, you usually buy condo insurance, an HO-6 policy, and the association’s master policy covers the exterior structure. If you own the building outright with no condo association, you buy a standard homeowners policy, an HO-3, and insure the full structure yourself. ValuePenguin puts average condo insurance at about $488 a year nationally, while a full homeowners policy averages far more, so identifying your setup correctly is worth real money.
The HO-6 townhouse
In a condo-style townhouse community, the association insures the roof, exterior walls, and common areas through its master policy, paid for from everyone’s HOA dues. Your HO-6 covers the interior: finishes, fixtures, your belongings, and liability. Townhouse HO-6 policies often cost more than apartment-style condo policies because the unit is bigger, the interior finish value is higher, and in some communities the owner is responsible for parts of the structure a high-rise owner never touches, such as the roof over their own unit. The declarations in our master policy vs HO-6 guide show where the line usually falls.
The HO-3 townhouse
A fee-simple townhouse with no condo association insures like a detached house. You cover the whole structure at its replacement cost, and your premium follows the same math as any homeowners policy: dwelling limit, location, roof, and deductible. These townhouses often price slightly below a detached house of similar size because there is less exterior surface and a smaller lot, but the difference is modest. Use the cost by home value table to estimate your range by dwelling limit.
Questions to ask before you buy
Ask the HOA for the master policy’s declarations page and for a plain answer on who insures the roof, the exterior walls, and the interior finishes. Ask whether the association carries a large deductible that can be assessed back to owners after a loss, and consider loss assessment coverage on your own policy if it does. Our HO-6 cost and coverage guide covers the standard limits owners choose.
Then get the quote that matches your answers. Owners who guess wrong buy the same wall twice, once through their dues and once through their own policy, or worse, leave the roof insured by nobody. The five minutes with the HOA documents settles which policy you need, and the premium difference between the two forms is large enough that guessing is an expensive habit.
