Townhome Rental Property Insurance: Coverage Options
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 10
- 2 min read
Renting out a townhome can be a smart investment, but it comes with unique risks that standard homeowner's insurance may not cover. Whether you're leasing your townhome short-term through platforms like Airbnb or offering long-term rentals, having the right insurance policy is critical to protecting your property, income, and liability.
At Wexford Insurance, we specialize in rental property insurance tailored to townhome owners. This guide breaks down the coverage options available and why townhome landlords need specialized protection.
What Is Townhome Rental Property Insurance?
Townhome rental property insurance, often referred to as landlord insurance, is designed for property owners who lease out their townhomes. Unlike homeowners' insurance, which covers owner-occupied homes, landlord insurance protects against tenant-related risks and rental income loss.
Depending on your ownership structure—whether your townhome is part of a homeowner's association (HOA) or not—you may need different types of coverage. For example:
HOA Master Policy: Covers shared structures and common areas.
HO-6 Policy: Covers the interior of your unit and personal liability.
Landlord Policy: Covers the entire structure, liability, and rental income loss.
What Does Townhome Rental Insurance Typically Cover?
A comprehensive townhome rental insurance policy includes:
Dwelling Coverage: Protects the structure from damage due to fire, storms, vandalism, or other covered events.
Liability Protection: Covers legal and medical expenses if a tenant or guest is injured on your property.
Loss of Rental Income: Reimburses lost income if the townhome becomes uninhabitable due to a covered event.
Personal Property Coverage: Covers landlord-owned items like appliances or furnishings used by tenants.
Optional Add-ons: Flood insurance, earthquake coverage, and vandalism protection depending on location.
Risks Unique to Townhome Rentals
Townhome landlords face specific risks that make insurance essential:
Shared Walls: Increase the chance of damage spreading from neighboring units.
HOA Confusion: Misunderstanding what the HOA covers can leave gaps in protection.
Tenant Liability: Injuries or property damage caused by tenants can lead to lawsuits.
Privacy Breaches: Landlords must protect tenant data to avoid legal issues.
Why Wexford Insurance Is the Right Choice
At Wexford Insurance, we understand the complexities of insuring townhomes. Our policies are designed to:
Cover both short-term and long-term rentals
Include flexible liability and income protection
Offer bundled options for multiple properties
Provide expert guidance on HOA-related coverage gaps
Final Thoughts
Owning and renting out a townhome can be profitable, but it requires the right insurance to safeguard your investment. From structural damage to liability claims, the risks are real—but manageable with the right coverage.
Wexford Insurance offers tailored solutions for townhome landlords, ensuring you’re protected from the inside out. Whether you're renting seasonally or year-round, we help you stay covered and confident. Connect today!
FAQs
Q1: Does my HOA insurance cover everything in my townhome?
No. HOA policies typically cover shared structures and common areas. You’ll need your own policy for interior coverage and liability.
Q2: Is landlord insurance more expensive than homeowners' insurance?
Yes. Landlord insurance usually costs about 25% more due to added risks like tenant damage and income loss.
Q3: Can I insure multiple townhomes under one policy?
Yes. Wexford Insurance offers bundled policies for landlords with multiple rental units.
