Insurance Tips for Townhouse and Condominium Owners


Homeowners living in townhouses or condominiums typically are part of an home owners association (HOA) that serves to maintain and insure common elements of the property such as roofs, exterior of the building and landscaping.  You may have a pool and, or a clubhouse that are amenities the association is responsible for maintaining as well.

HOA’s purchase hazard insurance referred to as a Master Policy that provides liability and property coverages based on covenants, conditions and restrictions (CCR’s).  This dictates how insurance is to cover the building and to what extent, if any it should cover the interior of the building.  This is referred to as unit owners coverage.  Some HOA’s indicate in their CCR’s that the master policy covers everything inside and out that is original construction.  This would leave homeowners to cover upgrades, additions or alterations.  For example, the original building included carpeted floors and a homeowner decides to upgrade to a hardwood flooring.  The cost of the hardwood flooring would be the homeowners responsibility and should have coverage adequate to replace the wood flooring should their be a covered loss.  Others may provide even less coverage and maintain that all unit owners are responsible for all interior finishes including walls, flooring, fixtures and counters.

Homeowners in these types of arrangements should purchase what is referred to as an HO6 policy.  This provides contents coverage as well as building coverage, as needed, along with a package of coverage that usually includes loss of use coverage, personal liability and medical expense coverage.  Agents/brokers may have reconstruction cost estimators that they can use to determine the reconstruction cost of the interior on a townhouse or condominium to determine the right amounts of coverage needed.

Other important coverages to consider as a townhouse or condo owner are loss assessment coverage, sewer and drain coverage, and glass coverage.  If you’re purchasing, or already own a townhouse or condominium in Colorado, let the Darin Zier Agency guide you through the process and give you great peace of mind to know you are well covered for all the unknowns.  Give us a call at (303) 978-1770 or visit online at

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