Duplex VS Townhouse Insurance in Canada
Are you getting ready to spread your wings and move out of your parent's home? Perhaps you're looking for a seasonal getaway or a place to enjoy your retirement with your significant other?
If so, you've likely looked at a long list of properties in Canada, potentially some townhouses and duplexes. Many buyers and renters overlook the value of townhouses and duplexes. Both of these options are fantastic in their own unique ways. Additionally, they tend to be more affordable than traditional detached homes, making them perfect for young renters or seasoned buyers.
But, this leads to the question — which option is better for you? In this article, we'll address and assess the classic duplex vs townhouse debate. We'll also help you figure out what type of insurance you'll need for both options.
START A QUOTETownhouse vs duplex — what are they?
Townhouses and duplexes are living spaces that range in size and price. However, there are other key differences that buyers and renters should be aware of:
What is a townhouse?
A townhouse is a living space with shared walls and multiple levels. Townhomes generally feature attractive amenities like garages, backyards and additional storage space.
What is a duplex?
A duplex is a large home that is split into two separate living spaces.
A duplex can be split down the middle of the living space or be separated by floors (one resident gets access to the top floor, while the other gets access to the lower level). Duplexes tend to offer shared amenities, like driveways.
Do you need insurance if you live in a townhome or duplex in Canada?
In most cases, yes, you'll need some form of coverage if you want to live in a townhome or duplex in Canada. The type of insurance coverage that you need depends on the classification of the property and a handful of other factors.
What's the difference between duplex and townhouse insurance in Canada?
First of all, we'd like to address a common mistake that we've noticed. Several Canadians are under the impression that they can purchase "townhouse insurance" or "duplex coverage", but this isn't the case.
If you're planning on moving into a townhouse, you'll most likely need condo coverage. In contrast, if you're planning on renting out a portion of a duplex, you may need to invest in tenant insurance.
Why do you need to get condo insurance for a townhouse in Canada?
In most cases, townhouses are classified as condos, which means that the owner buys a portion of the property (the interior of the building), not the entire plot in which the building is located. In this situation, the condo board or association covers the property's exterior.
So, instead of getting insurance for the entire property, townhouse owners usually just need to get a personalized condo insurance policy to protect the interior of the lot.
With this in mind, the next time someone brings up the duplex vs townhouse vs condo insurance debate, you can remind them that condos and townhouses often require the same type of coverage.
Bonus — Freehold ownership
In some cases, you can be a freehold owner of a townhouse in Canada. Being a freehold owner means that you own the building and the land in which the building is located. In this scenario, you'll most likely need to obtain additional coverage.
Why do you need to get tenant insurance for a duplex in Canada?
Unlike townhouses (which are owned by a condo board or association), duplexes are usually owned by individual landlords. Because of this, you may need to get tenant insurance in Canada.
Tenant insurance isn’t always necessary, as it isn't a legal obligation. That being said, the Canadian government does allow landlords to require renters to obtain tenant insurance before committing to an agreement. Your landlord will do this in hopes of protecting their investment (and potentially their main source of income).
So, if your landlord doesn't ask you to get tenant coverage, you don't have to, but we still suggest investing in it just to be safe.
What's the average price for condo insurance and tenant coverage in Canada?
Currently, the average price of condo insurance in Canada is $400 to $600 a year. In contrast, the average cost of tenant insurance in Canada sits at a mere $300 a year.
The price difference does make sense, as condo insurance is generally more extensive than tenant coverage. That being said, you should still keep the price difference in mind before making a final decision.
Do you want to save on condo or tenant insurance in Canada? Team up with Surex
Even though tenant coverage is generally more affordable than condo insurance, neither of them are necessarily "cheap". If you're tired of comparing overpriced insurance quotes, it may be the perfect time to contact a Surex insurance advisor.
At Surex, our primary goal is to help you save on insurance, whether it be condo insurance, tenant coverage, or anything in between. Our advisors can provide you with ten top-notch, personalized quotes within ten short minutes. Not to mention, if you have any questions along the way, we're always happy to answer them to the best of our abilities.
Call or visit our website to learn how you can save with Surex.
Other ways that you can save on tenant or condo insurance in Canada
Looking for other ways to save on tenant or condo insurance in Canada? Consider trying these tried-and-true tips:
- Raise your insurance deductible
- Maintain a good credit score
- Consider bundling your condo or tenant insurance with your auto coverage
- Look for a newer living space in a low-risk neighbourhood (low crime rates, vandalism rates, etc.)
- Ask about senior discounts (if applicable)
Want to learn more about insuring a duplex or townhouse?
Do you have a never-ending thirst for knowledge? Are you always trying to stay up-to-date on the latest insurance trends? The Surex team is happy to help with that.
Our blog is chock-full of useful insurance information that can help you save money. If you can't find the information in our blog, feel free to reach out to one of our experienced insurance advisors. We're always happy to shed some light on any of your unanswered questions.
