A Guide to Insuring a Townhouse in Central New York

You love your townhouse in Central New York. It’s your home, your sanctuary, your investment. You want to protect it from any damage or loss. But you don’t know how to insure it. It’s different from a condo or a house and has some special features and challenges. You know it involves a homeowner’s association (HOA) and some rules and responsibilities.

But you’re confused and overwhelmed by all the options and details.

You are not alone. Many townhome owners struggle with finding the right insurance policy for their needs and budget.

That’s why we created this guide for you. We’re Horan, a Baldwinsville-based agency that specializes in townhouse insurance. We’ve been serving Central New York since 2009. We have helped hundreds of townhome owners like you find the right policy for their situation.

This article will explain what a townhouse is and how it differs from a condo or apartment. We’ll also tell you what you need to know before buying a policy.

Townhouse Insurance: Who Is Responsible for the Roof and Siding?

A townhouse is a housing unit with one or more stories and shares walls with other units on the sides, behind, or in front. Unlike a condo or an apartment, a townhouse does not have anyone living above or below it. Every unit has its own front door that leads to the outside.

A townhouse is usually part of a larger building that contains many units.

One of the main differences between a townhouse and a condo or an apartment is the ownership of

1. the roof and
2. the siding.

These parts of the building are exposed to the weather and need regular maintenance. In some cases, the homeowner’s association (HOA) of the townhouse complex covers the roof and siding costs.

In other cases, the individual townhome owner is responsible for them. This can affect the type and the amount of insurance you need for your townhouse.

How Covenants, Conditions, and Restrictions (CC&Rs) Can Affect Townhouse Insurance Coverage

Before you buy a townhouse insurance policy, you should check your covenants, conditions, and restrictions (CC&Rs) document. This is the document that outlines the rules and responsibilities of the HOA and the townhome owners. It will tell you what your HOA dues cover and what you are liable for.

Your CC&Rs document can affect your townhouse insurance coverage in a number of ways. One way is with regard to determining who is responsible for maintaining and repairing certain parts of your property. That will dictate the amount of coverage you need.

You should also compare different insurance companies and policies to find the best deal for your needs. An independent insurance agent can help you do this.

Townhouse insurance is similar to homeowner’s insurance but has some unique features. You should be aware of them before purchasing a policy. By following this guide, you can insure your townhouse and your belongings against any unexpected damages or losses.

How to Deal with the Roof Condition and Ownership of Your Townhouse

Another thing you should know about townhouse insurance is the roof condition. The roof is one of the most important and expensive parts of your home. It protects you from rain, snow, wind, and sun. But it also wears out over time and needs to be replaced.

Some HOAs take care of the roof replacement for all the townhouses in the complex. They charge a fee to the townhome owners and hire a contractor to do the job. They make sure the roof looks uniform and matches the style of the building.

But some HOAs leave the roof replacement to the individual townhome owners. The owners must pay for it themselves and find their own contractor. They can choose the color and the material of the shingles. This can create a mismatched look among the townhouses. You can see this example in a nearby development called Village Green. It is an old townhouse complex that was built in the sixties. If you drive by it, you’ll notice that some townhouses have chocolate-colored shingles, and some have black shingles. They have different slopes and shapes, so they look like they belong to different buildings.

To avoid this confusion, you should check your CC&Rs document. It will tell you who is responsible for the roof and the siding. You should also inspect the roof condition before you buy a townhouse. You don’t want to end up with a leaky or damaged roof that will cost you a lot of money and hassle.

How to Insure the Exterior of Your Townhouse and What to Look for Before Buying

Once you’ve determined who is responsible for the exterior of your home, you need to buy enough coverage to protect your investment.

If you are responsible for the exterior of your townhouse, you should insure it like a house. You should estimate the size and the value of your roof and your siding. Also, consider the age and the quality of the materials.

Prioritize getting a policy that covers the replacement cost of your roof and siding. Learn why replacement cost coverage is essential for your home policy.

You should also get a policy that covers the damage caused by storms, fire, vandalism, and other perils.

Why You Need a Loss Assessment Endorsement for Your Townhouse Insurance

Now we come to the loss assessment endorsement. This special coverage can help you if your HOA faces a big claim exceeding its insurance limit. It can also help you if your HOA charges you a fee to cover the cost of a common area repair or improvement.

A loss assessment endorsement is important for any townhome owner who lives in an HOA. But it is especially important for those who do not own the exterior of their townhouse. If the HOA is responsible for the roof and the siding, and they get damaged by a storm or a fire, the HOA might not have enough money to fix them.

The HOA might ask you and the other townhome owners to pay a share of the cost. We discuss this in more detail in the next section.

Your CC&Rs document will tell you how the HOA handles these situations. Most HOAs have a clause that says they can charge you a special assessment if they run out of money or face a large expense. You should read this clause carefully and understand your obligations.

You should also get a loss assessment endorsement for your townhouse insurance policy. It will cover your portion of the special assessment up to a certain limit. Be sure to choose a limit that matches your risk and budget.

You also have to think about the other things your HOA owns and maintains.

These are the common areas and the amenities. They include the pool, the tennis court, the basketball court, the walking trail, and so on. They can also get damaged by a storm, a fire, vandalism, or an accident. The HOA might charge you a special assessment to fix them. A loss assessment endorsement can cover that too.

Avoid Paying Expensive Special Assessments with Townhouse Insurance

As stated above, sometimes your HOA might charge you a special fee for a big repair or improvement. This is called a special assessment. It is different from your regular HOA dues. You have to remit it as a one-time payment. It can be very expensive.

Insuring Against Roof Damage

For example, imagine a hailstorm damages all the roofs in your townhouse complex. The HOA is responsible for the roofs, but they don’t have enough money to fix them. They have to hire a contractor out of Manlius and pay for the materials. They might ask you and the other townhome owners to pay a share of the cost. They might say you have to pay $5,000 each!

You can protect yourself from this situation with a loss assessment endorsement. This special coverage pays for your part of the special assessment. It’s not the same as a regular claim. You can’t call your insurance company and say you need to fix your roof.

They’ll say you’re not responsible for the roof. This is because your insurance company only covers what you own.

They base your insurance value on the interior of your townhouse, not the exterior.

But you can call them and say you need to pay a special assessment. They will check your policy and see if you have a loss assessment endorsement. If you do, the insurer will cover your payment up to a certain limit.

Insuring Against Vandalism

Another reason to get a loss assessment endorsement is vandalism. Vandalism is when someone damages or destroys your property on purpose. It can happen to your townhouse or to the common areas and the amenities. Repairing or replacing damaged items can cost a lot of money.

Imagine some kids graffiti the clubhouse and the pool area. They ruin the walls, the furniture, the equipment, and the signs. The HOA has to clean up the mess and restore the place. They might also have to install a security system to prevent or catch future vandals.

They might not have enough money to do all this. They might ask you and the other townhome owners to pay a special assessment. You might have to pay $1,000 or more.

Choose a loss assessment endorsement limit that suits your needs and budget.

Insuring Your Townhouse and Your Belongings Against Damage or Loss is Easy When You Have Help

We know finding the right policy for your townhouse can be hard. You have to consider many factors and details. You have to deal with a homeowner’s association and some rules and responsibilities. You have to compare different companies and policies and balance your needs and budget.

But you don’t have to do it alone. We’re here to help you. Horan specializes in townhouse insurance. We have the experience and the expertise to help you find the best policy for your situation. We can answer your questions, explain your options, and give you a free quote.

We can also offer you a free consultation and a personalized plan.
Click the Get a Quote button below. One of our friendly insurance specialists will contact you to discuss your policy options.

Want to learn about more necessary riders for your home policy? Read our related article “5 Must-Have Riders for Home Insurance.”