Townhome insurance is similar to condo insurance, but there are some important differences:
In most states, condominium associations are governed by specific laws and insurance requirements. In contrast, townhome associations and homeowners associations may not be subject to the same requirements.
If you own a townhome, the type of policy you need depends on whether or not your association has a master policy covering the building structure and other common areas. With a master policy in place, you only need coverage for those items that are not already protected by that policy, such as your furniture, carpets, cabinets, personal possessions, and items on your lot. You should determine what coverage has been obtained by your townhouse association and what additional protection you might need.
If your association does not have a master policy, you will need to obtain homeowners insurance as if you live in a single family home—i.e., you need coverage for the building structure and exterior as well as interior furnishings and your personal belongings.
Unlike condo owners, you are also responsible for insuring your lot. This could include trees, shrubs and outdoor structures such as a garden shed.