When renting an apartment or house, your landlord’s insurance policy only covers the structure. An HO-4 policy, also known as a renters insurance policy, protects your personal belongings. An HO-4 renters’ policy provides “named perils” coverage, which defines the type of disasters covered in its terms. The term “peril” refers to a force or incident causing loss.”

What Does HO-4 Insurance Cover?

The HO-4 policy covers the same 16 perils as HO2/HO3 policies. So, if your belongings are stolen or destroyed by fire, you should file an insurance claim for your losses. The renters’ coverage also pays when water unexpectedly damages their property, like if a hot water tank suddenly ruptures, destroying furniture or rugs inside the home.

The standard HO-4 insurance policy pays the depreciated value of your personal property. But, you can purchase replacement cost coverage which will pay to replace your belongings at current market prices.

The 16 Perils HO-4 policies cover includes: 

  • Accidental overflow of water or steam
  • Accidental and sudden burning, cracking, or tearing apart of home systems
  • Aircraft
  • Civil unrest and riots
  • Explosions
  • Falling objects
  • Fire and lightning
  • Freezing
  • Hail and windstorms
  • Power surges
  • Smoke
  • Theft
  • Vandalism
  • Vehicles
  • Volcanic eruptions
  • Weight of ice, sleet, and snow

Additional living expenses

If you need to relocate from home following a covered loss temporarily, additional living expenses coverage can help cover the cost of new temporary housing and meals. In most cases, this type of insurance reimburses homeowners for expenses that exceed everyday living expenses.

Personal liability

Personal liability coverage can help pay for any medical expenses incurred if a visitor slips and falls in your rental. Personal liability coverage may also cover you should someone sue over an injury that occurred at your home. However, there are typically liability limits for legal or medical payments. If you need more coverage, it’s best to speak with your provider.

Personal property

When a covered peril damages or destroys your personal belongings, such as clothing and electronics, personal property coverage can help pay to replace them up to a specific cost limit. If you have expensive items in your rental, it’s best to add a rider or endorsement.

What Does HO-4 Insurance Not Cover?

Basic renters insurance comes with a few coverages such as personal property, liability, medical payments to others. Optional riders can be added to the policy at an extra cost to provide more protection.

In most if not all cases, basic HO-4 insurance does not cover the following but can be added as optional:

  • Earthquake and flood damage
  • Structural damage
  • Your medical expenses

Note that HO-4 insurance varies widely from insurer to insurer, so it’s best to read all the fine print and coverage within your plan. 

Who Is Best Suited for HO-4 Insurance?

HO-4 insurance is only available to those currently renting a home, townhouse, condo, or apartment. 

How Much Does HO-4 Insurance Usually Cost?

The average annual renter’s insurance policy costs $180 per year. A few factors that impact the price include location, coverage amount, and deductible size. It’s a cost-effective type of protection with lots of benefits!

What Are the Other Types of Home Insurance Policy Forms?

If you own a condo, your options are slim. However, there are other types of home insurance policies out there. 

HO-1 Policies

Homeowners Insurance (HO-1) is the most basic home insurance policy you can get. It offers protection for dwelling and not much else. HO-1 does not provide liability, personal property, medical payments, or additional living expenses coverage. Most states do not allow for HO-1 policies to be sold. 

HO-2 Policies

An HO-2 plan, better known in the trade as “named peril insurance,” covers your insured structure and personal possessions against various listed hazards. You can get this plan if you live in certain areas prone to hurricanes, cyclones, hail storms, and civil unrest.

HO-3 Policies

HO-3 stands for Homeowners’ policy and is a coverage plan that the insurance company administers. It provides you with essential protection against damages to your home, your belongings, and even yourself. The HO-3 will also cover expenses for temporary living arrangements due to such damage or injury, or it will compensate you if someone else is hurt in your house as well as structures on your property.

HO-5 Policies

HO-5 policies are similar to HO-3 policies in that they offer coverage for your home and its contents. Unlike the HO3, however, an HO-5 policy also includes coverage for your possessions, such as furs, artwork, or jewelry.

HO-6 Policies

Condo insurance, or HO-6 coverage, is designed to protect your possessions and keep you safe if anything unfortunate happens. The amount of protection needed will depend on what protections are already in place through condo bylaws (which may be incorporated within HOA rules), as well as how much coverage you’re happy to purchase for your items.

HO-7 Policies

HO-7 policies, otherwise known as mobile home insurance, is a type of homeowner’s policy that protects from fire and theft by offering average coverages like liability or personal property damage. 

HO-8 Policies

HO-8 insurance is a type of coverage that can provide you with protection if your home doesn’t meet the standards required by most insurers.

Homeowner Insurance FAQ

What’s the Difference Between HO-4 and HO-3 Policies?

HO-3 policies are ‘actual cash value,’ and HO-5 policies are ‘replacement cost.’ The most significant difference is that most HO-3 have actual cash, whereas usually, the replacement costs in a policy. You also get personal property coverage against more dangers with an HO-5 than typical insurance offered as well.

What’s the Difference Between HO-4 and HO-6 Policies?

HO-4 is a renter’s insurance, but an HO-6 policy is for owners of condos. 

Get the Coverage You Need with CoverageHaven

To understand the coverage you need for your rental, it’s best to speak with a licensed insurance agent. Contact us today to find out what kind of coverage suits your specific needs!