Risk Tip: Understanding Town Home Insurance - Laureate Insurance Partners Risk Tip: Understanding Town Home Insurance - Laureate Insurance Partners

At Laureate Insurance, we understand the differences between owning a home and renting. And when it comes to protecting your town home, it’s important to understand that insurance for a town home is much different than homeowners or renters’ insurance. We’ve put some information below to help you further understand any coverage gaps you may have.

Coverage Gaps

Personal property coverage

Personal property coverage protects everything in your unit that is not a fixture, such as electronics, furniture, décor, clothing, books, kitchen equipment, etc.

Additional and alternations

This coverage offers protection for the alterations, appliances, fixtures, and improvements that are part of the building contained within the insured unit.

Personal liability coverage

Personal liability insurance protects you and covered members of your household if you’re responsible for bodily injury or property damage to others.

Master policy deductible coverage

HOAs increasingly choose higher deductibles for their master policies, reducing their premiums while upping the risk to individual owners. In case there is a loss, this coverage reimburses unit owners for these deductibles.

Special or loss assessment coverage

This coverage kicks in when an assessment is caused by a covered peril — for example, a large storm rips the roof off the entire building, exceeding the HOA’s insurance limits and sticking you and your neighbors with a huge repair bill. Every town home owner will have to split up and share of the cost of the repairs.

Named perils coverage (flood, hurricane. Wind, sewage)

The HOA decides if it wants to purchase additional insurance for named perils, which are not covered by standard HOA master policies. However, in most cases you can add additional coverage. Let us review your master policy to keep you protected.

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