What Is a Stacked Townhouse and Do Insurance Rates Differ?

Canada might be known for being a cultural melting pot, but that's just the tip of the iceberg; Canada is also "home" to a wide variety of living spaces.

Each type of living space comes with its own sets of pros, cons and expenses. If you're looking for a modern, cost-effective living space, you may want to consider looking for a stacked townhouse.

These unique living spaces are becoming quite popular in a number of towns and cities across Canada.

But, before you start your search, you should take a moment to ask yourself some important questions, including, "is a stacked townhouse the right choice for you and your family?" and "how do these types of properties affect your insurance?".

We’ll answer all of your questions, and many more, in the upcoming paragraphs.

What is a stacked townhouse? — An expert overview

Stacked townhouses are unique types of properties that share a number of characteristics with condos and traditional townhouses.

Much like regular townhouses, stacked townhouses are attached to one another (at the side), and each living space has its own entrance and exterior. These living spaces can be freehold or a part of a condo corporation.

The primary characteristic that separates stacked townhouses from traditional townhouses is that they feature multiple living spaces. 

Unlike traditional townhouses (which are usually owned and inhabited by a single person or family), stacked townhouses have the space to accommodate multiple owners (generally one unit/owner per floor). Because of this, living in a stacked townhouse is quite similar to living in a condo. This approach allows corporations to sell units to multiple owners without compromising the quality of living or privacy.

Stacked townhomes can be found in several locations across the country, but they're most common in large, highly-populated areas, like major cities.

Do stacked townhomes affect insurance?

Yes, the type of property that you own (or live in) will affect the type of insurance that you need to purchase. Other details, like the property's location, size and price, can also affect how much insurance you need to obtain and how much you'll need to pay for coverage.

For instance, if you're planning on purchasing a stacked townhouse, you'll need to purchase an acceptable condo insurance policy.

If your stacked townhouse is a freehold property (i.e. you own the property and the land on which the property sits), you'll need to get coverage for the property and the land. 

In contrast, if the townhouse is a leasehold property (i.e. it's owned by a condo corporation), then you won't need to obtain coverage for the land on which the property sits, but you'll need to get coverage for the structure.

Thankfully, insurance for stacked townhouses is (generally) cheaper than property insurance for a detached home.

What are the pros and cons of stacked townhouses?

Like other living spaces in Canada, stacked townhouses have a handful of advantages and disadvantages. Buyers should take a moment to weigh the pros and cons of this type of property before committing to a new living space.

What are the pros of stacked townhouses?

The pros of stacked townhouses include the following:

• Less expensive — Stacked townhouses tend to be more affordable than detached homes in Canada.
• Affordable insurance — In comparison to detached and semi-detached homes, stacked townhouses are (generally) more affordable to insure.
• Amenities — Many stacked townhouse owners get to take advantage of incredible amenities, like lounges and gyms.
• Maintenance — If your townhome is a leasehold property, the stacked condo townhouse corporation will take care of the exterior maintenance, like mowing the lawn, trimming tree branches, etc.

What are the cons of stacked townhouses?

The cons of stacked townhouses include the following:

• Maintenance fees — If your stacked townhouse is a leasehold property, you won't have to maintain the exterior of the space, but you will need to cover maintenance fees on a regular basis.
• Minimal storage space — Although they (generally) offer more storage space than condos and apartments, stacked townhouses don't have as much storage space as detached homes.
• Lack of outdoor space — Although many stacked townhome owners get access to communal amenities, like lounges, they don't get access to a lot of (if any) personal outdoor space.
• Neighbours — Even though stacked townhouses provide more privacy than some other types of living spaces (like stacked condos or apartments), they don't offer as much privacy as detached homes.
• Strict rules — Many insurance companies have very strict rules about how the structure is built and what they are willing to insure. Firewalls, type of roofing, number of units per building are all factors to consider before purchasing your home, as it may be difficult to obtain affordable insurance if these things are not compliant with what insurers require. 

Be sure to keep these pros and cons in mind before committing to a decision.

How to get insurance for a stacked townhouse in Canada

In the past, you needed to contact insurance companies directly if you wanted to get a quote. This process worked, but it wasn't efficient for policyholders or providers.

Nowadays, there's a quicker, easier way to shop for insurance in Canada.

Whether you need insurance for your vehicle, detached home, apartment, or of course, your stacked townhome, the first thing you should do is contact a reputable online insurance brokerage.

Online insurance brokerages make it easier for Canadian policyholders like you to find and compare competitively-priced insurance quotes from the comfort of their homes.

For those that don't know, online insurance brokerages, like Surex, work with a wide variety of insurance providers. Working with a number of insurance providers gives online brokerages, like Surex, the ability to help policyholders compare the very best insurance quotes in Canada.

Save up to 25% when you bundle your insurance policies with one of our Surex insurance carriers

Now that you're familiar with your insurance needs for your stacked townhouse, it's time to start shopping for coverage!

If you need help at any point along the way, you can rely on your personal Surex insurance advisor. Our talented team of top-notch insurance advisors can help you find and compare insurance quotes in ten minutes or less!

Contact us today to get started and to learn how our team can help you save (up to) 25% when you bundle multiple policies with one of our partners.