If you live in a townhome or condominium, your homeowner's association most likely has insurance for the structure of your home.  But you need your own townhome insurance to protect your possessions from theft, water damage, mold, and other damages.  Here are some tips on buying townhome insurance:

• Find out from your homeowners association what their insurance covers and what you are responsible for.
• Estimate the value of the contents of your home so that you know how much insurance to purchase.
• Decide if you want an Actual Cash Value Policy or a Replacement Cost Policy. 
  
  
  • A Replacement Cost Policy costs more, but it means that if the item is damaged or stolen you will receive enough money to purchase the exact item.
  • An Actual Cash Value Policy means you get the value of the item minus depreciation. 
  • So if your 5 year old 30 inch Toshiba TV is stolen, a replacement cost policy will give you money to buy a new 30  inch Toshiba TV, but an actual cost policy will only give you enough money to buy a 5 year old 30 inch Toshiba TV.
• Also decide if you want any additional protection for jewelry, electronic equipment, or other special items.
• Your policy can also include reimbursement for living expenses in case you have to pay for a hotel while your townhome is being repaired.
• Once you purchase a policy, make a list of all your valuable items and take pictures of them.  This will make it easier for you to recover if you are ever a victim of theft or disaster.