Townhome Rental Insurance: Do You Really Need It?
- Nate Jones, CPCU, ARM, CLCS, AU
- 3 hours ago
- 2 min read
Renting out a townhome can be a smart investment, but it also comes with risks that many property owners overlook. Whether you lease your townhome short-term through Airbnb or long-term to tenants, having the right insurance is critical. Without proper coverage, you could face costly repairs, legal claims, and lost rental income.
At Wexford Insurance, we specialize in rental property insurance tailored to townhome owners. Here’s why townhome rental insurance isn’t just a good idea—it’s a necessity.
What Is Townhome Rental Insurance?
Townhome rental insurance, also known as landlord insurance, is designed for property owners who lease out townhomes. Unlike homeowners insurance, which covers owner-occupied residences, landlord insurance protects against tenant-related risks and rental income loss.
It typically includes:
Dwelling Coverage: Protects the structure from fire, storms, vandalism, and theft.
Liability Protection: Covers legal and medical expenses if a tenant or guest is injured on your property.
Loss of Rental Income: Reimburses lost rent if the townhome becomes uninhabitable due to a covered event.
Optional Add-ons: Flood insurance, earthquake coverage, and short-term rental endorsements.
Why Homeowners Insurance Isn’t Enough
If you’re renting out your townhome—even occasionally—your homeowner's policy likely won’t cover rental-related claims. Most policies include a business activity exclusion, meaning damage caused by tenants or liability from rental guests may be denied.
Additionally, if your townhome is part of an HOA, the master policy only covers shared structures and common areas—not the interior of your unit or your liability as a landlord.
Risks of Renting Without Insurance
Without proper rental insurance, townhome owners face:
Out-of-pocket repair costs for tenant-caused damage
Legal liability if a guest is injured
Loss of rental income during repairs
HOA violations if your lease terms don’t align with association rules
These risks can quickly turn a profitable rental into a financial burden.
Why Choose Wexford Insurance?
Wexford Insurance offers tailored coverage for:
Townhomes in HOA-managed communities
Short-term and long-term rentals
Multi-unit properties like duplexes and triplexes
Our policies include property damage, liability protection, and income loss coverage—plus expert guidance on navigating HOA requirements and rental regulations.
Final Thoughts
If you’re renting out a townhome, insurance isn’t optional—it’s essential. From structural damage to liability claims, the risks are real. The right policy ensures your investment is protected and your rental business runs smoothly.
Wexford Insurance is your trusted partner for townhome rental coverage. Whether you own one unit or a portfolio, we’ll help you stay covered and confident. Connect today!
FAQs
Q1: Does my HOA’s master policy cover my rental unit?
No. It only covers shared areas. You need separate coverage for your unit’s interior and liability.
Q2: Is townhome rental insurance required by law?
Not always, but mortgage lenders and HOAs often require it.
Q3: Can I bundle multiple townhome policies?
Yes. Wexford Insurance offers bundled policies for landlords with multiple units.
