and Life Insurance

Question by Jennifer S: What exactly is “Common Insurance” on a townhome?
Our townhome is currently on the market. Our RE Agent has “Common Insurance” listed as one of the association’s amenities. I know for a fact that we homeowners are responsible for the exterior of our homes (i.e., we have single-family home type coverage, not condo coverage). I’m sure the association has insurance on the “common areas” of the community (pool, clubhouse, common grassy areas, maybe?), but that’s it. Not our roof, shared wall, nothing. Please help me understand if our listing is misleading or in fact false in stating our association has “common insurance.” Thank you!

Best answer:

Answer by mbrcatz
It’s the policy that covers the “common areas” like any fences, or structures like a clubhouse – structure owned by the association, not you.

I’d say your RE agent has made an error.

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