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I've recently purchased a townhouse (3 days ago) and was trying to line up insurance quotes. The mortgate lender and the sellers agent said I would only need an HO-6 policy. Many of the insurance companies I have spoken with act like I need something else. Is HO-6 sufficient for a townhouse in most instances? I want to make sure Im getting the coverage I need.
Thanks for the update guys. I think I'm okay. I asked the lender and this was his response:
"The ho6 is all you need. The HOA dues that you pay have building insurance covering your structure and any attached to you. The Ho6 covers the contents and interior of the home and that is all you will need. Let me know if you have any other questions"
I really appreciate everyone's help. This board has proved invaluable during my house hunt.
In all the townhomes I saw, this was absolutely not true. The HOA didn't have any insurance on your home, only the common areas.
In the massive Beazer Homes fire on Capital, there was a big mess over the decision of some owners not to rebuild. The HOA didn't have the insurance, the owners each insured their own townhome.
You may have been guided totally wrong by an inexperienced loan officer.
Unless the building is a condo, you totally own your unit. The advice would be right for a condo,
Last edited by saturnfan; 09-14-2007 at 03:04 PM..
We bought a townhouse in Cary last year, and our insurance covers the property.....dwelling for full coverage of appraised value, other structures (probably the decks?) personal property, loss of use.... as well as personal liability coverage for bodily injury. Our total yearly premium last year was $450; however, it's up for renewal and the same policy with our other insurance company is only $329 yearly.
You definitely need coverage for the dwelling with a townhouse, and as you can see, it shouldn't cost you much.
I agree with the others who tell you to check it out. I recently purchased a townhome and I had to have full insurance because the HOA really only covers mowing the grass. My insurance is only 364 per year with some bells and whistle coverage attached ( personal property stuff )
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Quote:
Originally Posted by StMichael929
I've recently purchased a townhouse (3 days ago) and was trying to line up insurance quotes. The mortgate lender and the sellers agent said I would only need an HO-6 policy. Many of the insurance companies I have spoken with act like I need something else. Is HO-6 sufficient for a townhouse in most instances? I want to make sure Im getting the coverage I need.
Condos are not all flats. Some look identical to common townhomes.
The legal definition is how you own the building; with others as a share of the entire building and of the grounds(condo), or your own structure with your own deeded piece of dirt, separate from your neighbors(townhome).
Did you buy a Townhome, or a Condominium that looks like a townhome?
The difference is extremely important.
Forget the agents, lender rep, and us well-meaning folks at CityData...
I suggest you contact your closing attorney first thing Monday Morning for clarity on the nature of the property you own.
They will tell you for free whether you have a condo or townhome.
Just a note reinforcing what others are sharing. Double and triple check this with the property management company/homeowner's association. Also, your real estate agent should be able to help make sure you're getting reliable information.
What I'd recommend you do:
Find out what your association's master policy covers for town homes - when we were shopping for insurance rates, the insurance agent asked us what was covered by the master policy. We started by calling the on-site sales rep for the development and got directed to another internal rep, and then to someone in property management.
Ask about certain scenarios when you call to find out about the master policy and/or when you talk to your insurance agent. Ask about anything that comes to mind, but here are a few examples:
"what if a tree falls and damages my roof?"
"what if there's a fire in the community and both the exterior and interior of my property is damaged?"
"what if my neighbor's upstairs bathroom springs a leak and the water seeped into our unit and caused damage as well." Or
"what if there's a sewer problem that originates in pipes outside of my unit, but it caused damage in my unit?"
We're buying a town house with Centex and found that we are responsible for full coverage on our town house. According to my man, who is doing all the ground work securing insurance, he mentioned we're adding an addendum for getting insured for sewer back ups. It doesn't amount to much $ each year to add it. (I can't find our estimates at the moment, but when I do, I can double check other extras we're including in our coverage.)
Your insurance agent should have asked you to find out what your association's master policy covers for town homes. I'm not an expert with terminology, but from what I recall, some condos and town house (although probably more common with condos?) master policies will cover "studs out" which means you'd need to get "studs in" coverage. When the master policy does not cover "studs out" you are required to get full coverage. (Honestly, I still have a lot of questions about what "studs in" really covers. But since we're required to get full coverage, I haven't really searched for answers on that.)
It might not hurt to go to a few different insurance agencies just to get quotes. The exercise may also help uncover answers (or even more questions) about the level of coverage you should consider. You may also find an insurance agent who proves to be more expert in guiding you.
sorry - realized you have talked to different insurance companies...disregard my last comment there about getting different quotes.
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