Townhouse Insurance: Do You Need HO-6 or HO-3?

“Townhouse” describes how a home is built: attached, usually multi-level, sharing walls with neighbors. Insurance follows ownership. Two townhouses that look identical can need different policies.

The deciding questions

Question	If yes	If no
Does your deed include the structure and the lot beneath it?	Homeowners policy likely	Condo-style likely
Does the HOA’s master policy insure your building’s exterior and roof?	HO-6 likely	Homeowners policy likely
Are you responsible for roof and exterior repairs under the bylaws?	Homeowners policy likely	Check the master policy

If you need a homeowners policy

Set the dwelling limit at the full rebuilding cost of your unit’s structure, not the sale price. California’s Department of Insurance advises basing the limit on rebuilding cost rather than market value. See how much dwelling coverage you need.

If you need HO-6

Match the unit coverage to what the master policy leaves to you, and ask about loss assessment. See condo insurance vs. the HOA master policy.

Shared walls

• Ask how a fire that starts next door would be handled.
• Ask whether a party-wall agreement or HOA rule defines responsibility.
• Consider your liability limit if damage could spread to neighbors.

Getting it right before closing

Ask the HOA or seller for the master policy summary and the bylaws’ insurance section before you request quotes. A licensed agent can then quote the right form; mismatched policies are a common source of coverage gaps.

By phone

What happens when you call

A conversation lets the agent ask about your specific home instead of relying on a generic online estimate. There are no online forms to fill out.

1. 1

   Describe your home

   Share the address, size, age, construction, and roof or system updates. You do not need every detail to start.

2. 2

   Talk through coverage

   Explain what you want covered and ask about limits, deductibles, and exclusions that apply to your property.

3. 3

   Compare and decide

   Ask for the written quote terms and compare them before deciding. A call or a quote does not start coverage.

Sources and how this page was checked

Page updated October 23, 2026

This page is general information written from the public sources below. It has not been reviewed by an insurance company, attorney or licensed agent for your situation. Your policy form, endorsements, insurer and state rules decide what is covered.

Sources

• California Department of Insurance — Residential Insurance: Homeowners and Renters (Form 401, rev. January 2026)Retrieved and reviewed October 25, 2026 for Coverage A–F descriptions, special limits on valuables, renters and condo coverage, dwelling limits based on rebuilding cost rather than market value, actual cash value, guaranteed and limited/extended replacement cost, building code upgrade (ordinance or law) coverage, inflation guard, FAIR Plan, surplus lines and binder/quote definitions. California rules (notice periods, broker fees, CA-specific laws) are not generalized nationally.
• Texas Department of Insurance — Home insurance guideRetrieved and reviewed October 14, 2026. Texas consumer guidance; used for general policy concepts, with Texas-specific examples identified rather than generalized.

Before you rely on this page

• Read your declarations page, policy form and every endorsement; they control over any summary.
• Ask the insurer or agent to confirm limits, deductibles and exclusions in writing before you buy or cancel coverage.
• For state rules, deadlines or complaints, check your state insurance department directly.