Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. If you have a townhouse, the type of homeowners insurance you need depends on whether there's a condo or homeowners association. If your townhouse has a condo or homeowners association, you will need condo insurance. If your townhouse doesn't have a condo association, you will need standard homeowners insurance. Homeowners insurance covers the dwelling itself, including any structures on your property.