If you've recently purchased a townhouse and want to protect your investment, purchasing the right townhouse insurance is essential. Luckily, BrokerLink is here to make it all possible for an affordable rate.
What is a townhouse?
Townhouses, also known as row houses, are a type of multi-level home that shares at least one wall with the townhouse next to it. Typically, townhouses are freeholds, meaning that the row owner owns the physical structure of the property and the land it sits on.
Some townhouses are a part of condominiums, which means the homeowner owns a portion of the condo corporation and common areas. This means that they will need to pay maintenance fees each month for potential improvements and to keep it maintained throughout the year.
Home insurance for townhouse owners
When purchasing standard townhouse insurance, you can anticipate the following policies to be included:
Personal property insurance
Personal property insurance offers protection to your belongings from certain perils, including fire damage, theft, vandalism, and more.
Third-party liability coverage
Personal liability offers homeowners protection against lawsuits if someone is injured on their property or if their belongings are stolen or damaged by covering the costs of legal fees, medical bills, funeral costs, repairs, replacements, and other associated costs with their lawsuit, up to their coverage limits.
Additional living expenses
If your townhouse is damaged by a covered peril to the point where it's not safe to live in, additional living expenses will cover the cost of your accommodations, food costs, and other fees, until you can move back into your unit.
Dwelling insurance
Dwelling coverage will cover the cost of repairs if your property is damaged by certain covered perils, such as lightning strikes, fire, theft, vandalism, high winds, hail, and more.
Additional coverage options
Beyond standard coverage options, you may want to add additional policies for further protection. This includes overland water damage, sewer backup insurance, identity theft coverage, and more.
What is the average cost of townhouse insurance in Canada?
So, how much is insurance for townhomes or condominium units in Canada? On average, homeowners can anticipate paying around $1000 a year for adequate coverage. That said, this can vary significantly depending on many factors, such as where your townhouse complexes or apartment complex is located, the value of your personal belongings, whether you opt to purchase additional coverage, and more.
Is townhouse insurance mandatory?
No, homeowners are not legally required to insure their property. However, without certain townhouse coverages in place, you put your investment into your home at risk. Having customized insurance for your townhouse can give you that peace of mind, knowing you're covered in the event something unexpected happens.
Additionally, if you have a mortgage, purchasing coverage for your townhouse or condo may be required by your mortgage lender upon approval. For more information, check out BrokerLink's intro to mortgages or review Pine financial mortgage rates if you're looking at getting into the real estate market.
How can I save on my townhouse insurance policy?
Condo and townhouse owners alike can save money on their coverages by doing the following:
Shop around and compare quotes
Before purchasing townhouse insurance or condo insurance, shop around with different providers and compare quotes. By doing so, you can find the right policy while potentially lowering costs.
Consider your coverage limits
Another thing you can do is assess the hazards for your home before considering your coverage limits. There's no need to pay for insurance coverage you don't need.
Bundle your home and auto insurance
Bundling home and auto policies with the same insurance company can offer you a discount on your coverage. If you already have car insurance, this is a great way to lower your costs.
Ask about discounts
Beyond bundling your policies, there is also an insurance discount for home alarm systems, security cameras, smoke detectors for fire safety, installing plumbing devices to prevent flooding and sewer backup, and more. Don't hesitate to ask a broker or insurance agent whether you qualify.
Pay for your insurance policy upfront
If you can afford to do so, consider paying for your townhouse coverage upfront. Insurance companies add a monthly fee to those who pay their premiums monthly, as it costs them money to process each payment.
What is condo insurance vs. home insurance?
Condo insurance is a specialized type of home insurance that takes into account the unique risks condo owners face when living in a condominium complex. While your condo corporation will have its own insurance policy to cover common areas throughout the building, it does not extend to your individual unit, which is where condo insurance comes into play. With this coverage, your personal belongings and interests are protected against various liabilities and hazards.
What is the difference between home and homeowners insurance?
When searching for home coverage, you may have come across the term homeowners insurance, which can be confusing. So, is there a difference between home vs homeowners insurance? There isn't! These terms are used interchangeably and refer to the same type of coverage!
What does it mean to refinance your mortgage?
When you refinance your mortgage in Canada, you essentially break your current mortgage contract to apply for a new mortgage, which would then pay off your remaining mortgage balance. Homeowners often do so to secure a lower interest rate or consolidate their debt.
For affordable townhouse insurance, contact BrokerLink
Whether you're first-time home buyers or considering changing house insurance, BrokerLink can help. With years of industry expertise and access to top insurance companies across Canada, our brokers can help customize your insurance plan to meet your needs and budget. Beyond home insurance for townhouse owners, BrokerLink can also help with:
To work with BrokerLink, visit us at one of our many locations across Canada. If there's no BrokerLink in your neighbourhood, you can still contact us by phone or email. In the meantime, you can get a free townhouse insurance quote using our online quote tool!
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