January 1, 2021 2 min to read
What you need to know about townhouse insurance coverage
Category : Finance, Home and Garden
An important part of purchasing a townhome, whether it is to turn the next property into your new home or another source of income, is insurance coverage.
Even when it sounds like a small element, it will allow you to protect the property and all your belongings. That’s why you need to understand how the townhouse insurance coverage works.
Most people prefer buying a townhouse over a detached property because it is a cheaper way to enter the market.
But, there is one big difference between these two types of homes. While in a detached house, you have complete privacy, in a townhome you share all your sidewalls with your neighbour.
Thanks to all the characteristics of the townhouse, there is also special insurance coverage for these types of properties. You can either buy renters, condominium or homeowners insurance.
The kind of townhouse insurance you end up buying will ultimately depend on the status of your property and what you decide to do with it.
Townhouse vs Condominium: What’s the difference
Before you purchase any townhouse insurance coverage, you need to know the status of your property. This means whether it stands alone or is part of common ownership. If you are confused right now, don’t worry, just bear with us.
Depending on where you buy the townhouse, you can have a property semi-detached that you own with your neighbour, or it could be part of a condominium.
The majority of people think that a condo only refers to an apartment building, but that is not true. We call a development a condominium when we refer to the type of ownership.
A condominium is created when a developer builds, for instance, builds a series of sets of townhouses that form a condo corporation where he/she owns all the properties.
After a sale, the townhouse resident will own a part of that whole corporation. In the end, when there are no more properties available, the ownership will be completely in the hands of the residents.
Usually, when properties are classified as condominiums, the homeowners have common areas they are responsible for, such as a gym, swimming pool, a playroom for kids, among others.
Townhouse vs Condo Insurance
Now that we understand that a townhouse has two types of ownership, either as a part of a condominium or you being the sole owner of the property, we can take a look into your insurance options.
Townhouse vs condo insurance has several differences in regard to the type of coverage you will get. First, keep in mind that is not mandatory by the law to purchase any type of insurance for…
Continue reading the article and learn more about townhouse insurance on Daisy Linden’s blog.