Townhouse homeowners insurance - how to determine? (Cary: wood floors, sales)

[meanieme]

My understanding is that Townhome insurance differs from typical single family home insurance in that some of the insurance coverage may already be provided under the Townhome master association policy?

I think lenders require insurance coverage to get the loan so what's the best way to determine what kind of insurance coverage I need on the townhome? Ask the Community/HOA what insurance is covered already and then get the additional insurance that isn't covered?

This is Twin Lakes Townhome community in Cary that I am inquiring about. Thanks.

[angie313]

iirc, you are required to get coverage at least to your loan amount, so it won't matter what the townhome insurance covers. typically part of your dues do go to pay for exterior maintenance, roof, etc. but when you purchase a home- attached or detached- you are usually required by the lender to get coverage up to the loan amount, if not more.

[meanieme]

but lets say the townhouse association already has a master policy that covers things like the roofing, flooring, walls, etc....would I need to pay for the same coverage again out of my own insurance?

wouldn't the lender take things that the townhouse association already covers out of the equation?

[Janecj]

The best approach is to call an insurance agent. However, they do require you to provide a social security number when they provide a quote.

[rcarrillo]

If the townhome has a master liability policy you often can get cheaper insurance. Although usually its town home conversions (from rentals to owner occupied) and condos that I have seen with those.

The first step is to ask the sales agent or Realtor if the community even has one. Most will cover exterior maintenance only as was mentioned. If that is the case, then you need full coverage up to replacement cost for the home.

[VickiR]

A townhouse is a house...that is attached. In most cases, you get regular homeowner's insurance because you own the exterior and even though the HOA maintains the yard, you own it.

A condo is not a house. A condo shares walls and you don't own anything but the inside space. You don't own the roof or the outside walls or the yard around it. Therefore, the condo association owns this and they must have a master policy.

Your insurance person should know this. Make sure you are aware if you are buying a townhouse or a condo. There is a difference.

Vicki

[cry884]

You need to call your HOA, actually. The manager will get the HOA's agent in touch with your agent so your agent can look over the HOA's policy then fill in the gaps with your policy. Often you can get a good deal by using the same company as the HOA uses.

Some townhouses have a master policy and some do not. If they do not, you need a policy like you would on a single family home. If they do, you need an H06 policy, which is a step above a renters' "contents only" type policy.

[mrpeatie]

I agree with cry- call the HOA to check. When you closed you should have been provided with any HOA documents and any covenants. Even if the regime covers your exterior, they typically only cover the costs of replacing everything to builder spec. So if your place had 20 years worth of improvements like wood floors, updraded faucets and better appliances, the association's insurance would only pay for the original appliances which could be basic vinyl or carpet, GE applainces and the popcorn ceilings.

If insurance is by the association you also need a contents policy to cover your furniture, electronics, etc. When I lived in an attached unit my contents insurance was set at an amount that would have paid for the contents and the upgrades I made to bathrooms and the kitchen under one policy. Be sure it covers the replacement cost for jewelry, china and the like as well.