The HO4 home insurance policy is sometimes called a tenant's form or renters insurance. Having HO4 insurance coverage is beneficial for renters because it protects your personal property and you from a liability standpoint. In many cases, having at least liability coverage is actually required by a landlord before you can rent from them.
If you're in need of HO4 insurance, a local independent insurance agent can help you find it. They'll get you matched to the right policy at a great rate. But first, here's a closer look at HO4 or renters insurance and why it's necessary.
What Is an HO4 Policy?
An HO4 policy is also known as renters insurance. You may also see it written as HO-4 renters insurance.
In any case, an HO4 renters policy provides coverage for your personal belongings stored within a unit you rent to live in, such as an apartment, townhouse, or cottage. It also protects you from a liability standpoint if you are sued by a third party for claims of property damage or bodily injury.
Renters insurance is similar to homeowners insurance, except that it doesn't provide coverage for the structure or dwelling of the building you live in. That part of the property is protected by landlord insurance.
What Perils Does HO4 Renters Insurance Cover?
An HO4 insurance policy can provide reimbursement for theft, damage, or destruction to your personal property caused by many listed perils. These often include the following.
- Fire, smoke, and lightning
- Explosions and volcanic eruptions
- Hail and wind
- Malicious mischief, theft, and vandalism
- Falling objects and trees
- The weight of sleet, snow, and ice
- Riots and civil commotion
- Water damage from frozen or burst pipes
Your independent insurance agent can help review your specific HO4 policy with you to outline all the perils it covers.
What's Not Covered by HO4 Renters Insurance?
Renters or HO4 insurance also comes with a set of coverage exclusions. Here are a few common perils that an HO4 policy typically will not cover:
- Earthquake damage
- Flood damage
- Intentional or malicious acts against others
- Damage to the unit's structure or dwelling
- Pet damage
- Mold damage
- Intentional damage caused by you
- High-value items (without an endorsement)
- Business property (without an endorsement)
- Roommates' property
- Your vehicle
Any losses you experience that aren’t covered under the HO4 renters policy will be your responsibility to replace or repair. You can also purchase endorsements to add to your HO4 policy, such as for business property stored at your home or items of high value, like jewelry or cameras. To protect your personal vehicle, you'll need a separate auto insurance policy.
What Else Does HO4 Renters Insurance Cover?
Renters or HO4 insurance provides a lot of important coverage. A basic policy includes the following components.
- Personal property coverage: Renters or HO4 insurance can pay to repair or replace your personal property if it's stolen, vandalized, lost, damaged, or destroyed by one of the perils listed above.
- Personal liability coverage: Renters or HO4 insurance can reimburse you for expenses stemming from third-party lawsuits against you for claims of bodily injury or personal property damage.
- Medical expenses coverage: Renters or HO4 insurance can pay for medical expenses for third parties who are injured while at your home.
- Additional living expenses coverage: Renters or HO4 insurance can also reimburse you for expenses incurred while you must live elsewhere while your rental home undergoes repairs due to a covered peril. This can include hotel rooms, takeout meals, extra gas mileage, and more.
An independent insurance agent can help you get set up with a complete HO4 renters insurance policy.
How Much Does HO4 Renters Insurance Cost?
Renters insurance tends to be much more affordable than homeowners HO6 insurance. The current average annual cost of renters insurance is just $170, which breaks down to about $14 per month.
The cost of your policy may vary, however, depending on several factors, including:
- Where you live
- Your claims history
- The value of your personal property
- Any discounts you qualify for
Your independent insurance agent can help you find and apply any renters or HO4 insurance discounts that can help reduce your premiums.
An Independent Insurance Agent Can Help You Find the Right HO-4 Renters Insurance
Independent insurance agents can help you decide on the best HO4 policy for your needs and budget. Overall, a renters policy is relatively inexpensive and simple to set up. Of course, you’ll need to decide how high your benefit limits should be to replace all of your personal possessions.
You’ll also need to work with your independent agent to pick a liability limit that’s high enough to protect yourself. Your agent may even be able to bundle your renters and car insurance together from the same carrier for a discount. And down the road, your agent can help you file HO4 insurance claims and update your policy when necessary.
Sources
https://www.bankrate.com/insurance/homeowners-insurance/ho4/#how-much-does-ho-4-insurance-cost
https://www.plymouthrock.com/resources/what-does-renters-insurance-not-cover
