What Is HO-4 Insurance?

HO-4 insurance, or renters insurance, protects tenants and their belongings in the event of unexpected disasters or incidents, providing peace of mind for those who live in rented spaces such as a house, apartment or condo unit. In essence, HO-4 is designed to cover the renter’s personal property, liability coverage and loss of use coverage.

As a renter, understanding what HO-4 insurance involves, what it doesn’t cover, how much HO-4 insurance is and where you can find a policy is essential to begin protecting your finances.

HO-4 insurance or renters insurance is a financial safeguard for individuals who lease their homes or apartments. It provides coverage for personal belongings and offers liability protection in case of unforeseen events. Take a look at each coverage included in HO-4 insurance:

In essence, HO-4 insurance is a comprehensive package to protect renters from various unforeseen circumstances, making it an essential investment. HO-4 insurance doesn’t apply solely to your rented premises; it follows you wherever you go.

For example, suppose your bicycle is damaged while locked up outside a coffee shop. In that case, your HO-4 insurance can come to the rescue, demonstrating its versatility and value beyond the boundaries of your rented space. This extends the safety net of renters insurance to numerous aspects of your life, ensuring that unexpected mishaps don't leave you financially stranded.

In HO-4 policies, your belongings may be reimbursed at actual cash value (ACV) and replacement cost value (RCV). Most HO-4 policies reimburse your belongings at ACV, which gives you what your item is worth today, after years of use, while RCV pays out what it'd cost to buy a new equivalent item today. This choice can affect your claim payouts. For a clearer picture, here's a table breaking down ACV and RCV.

While HO-4 insurance offers a protective layer, it doesn't shield against everything. For instance, earthquake and flood damages need separate policies. To get the most out of your insurance, always review its specifics and consider extra policies or additions for complete peace of mind. HO-4 insurance may not cover the following perils:

Review your policy and understand its limitations to ensure you have the appropriate coverage for your specific needs. If you have concerns about any of these excluded events, consider exploring additional insurance options or riders to fill potential gaps in your coverage.

HO-4 insurance is essential for anyone renting an apartment, condo unit or house. While it's not a legal requirement for tenants, landlords can require renters insurance as part of their lease agreements. However, even if your landlord does not mandate it, it's highly advisable.

Renters insurance provides valuable protection for your personal belongings and offers liability coverage in case of accidents or damage that you might be responsible for in your rented space. It's a smart investment for renters of all types, offering financial security and peace of mind in the face of unexpected events.

For most renters, the cost of HO-4 insurance is quite affordable. For a policy providing around $20,000 in personal property coverage, you can expect to pay roughly $13 per month. However, rates can vary depending on various factors, such as your location, the coverage limits you choose, your deductible, and even your credit score. Look at the average cost of HO-4 insurance in the table below.

Remember that the above rates are simply averages, and your premium can change depending on your circumstances. Thus, comparing renters insurance quotes is a smart strategy to find cheap renters insurance, especially since insurance providers calculate their rates differently and offer discounts. Opting for higher personal property coverage limits or add-ons like scheduled personal property coverage for valuable items can increase your premium.

Most major insurance providers offer HO-4 policies, making it easily accessible for renters. You'll likely find numerous options if you prefer to work with well-known national insurers, regional carriers, or even online insurance platforms.

To purchase HO-4 insurance, you can contact insurance agents or brokers, visit insurance company websites to request quotes and information or explore online platforms that allow you to compare policies and rates from various providers. Evaluating different insurance companies, their coverage options, premiums, and customer reviews is essential to find the best fit for you.

Take a look at the average rates for each national provider and see how rates change:

Understanding what HO-4 or renters insurance covers and what’s excluded is essential. Learn more about HO-4 or renters insurance through our answers to some of the most frequently asked questions.