An HO-4 policy, also known as renters insurance or tenant insurance, is a policy specifically for renters. HO-4 policies protect your personal belongings from theft, fire, and other covered perils.
If you’re a renter, your landlord is responsible for insuring the building itself, whether it’s an apartment, condominium, house, or other dwelling. But your landlord’s insurance won’t cover your possessions.
Here’s what you should know about renters insurance, what it covers, and why this insurance is important if you rent your home.
Most HO-4 policies include three types of insurance coverage:
Some insurers may offer additional protection through extra add-on coverages.
HO-4 insurance policies generally include coverage against the following perils:
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If you have to file a renters insurance claim, the amount of your payout will depend on whether you have an actual cash value (ACV) or replacement cost value policy.
Actual cash value: If you have an ACV policy, your insurance company will reimburse you for the value of the damaged or stolen item, but the insurer will deduct for depreciation. This may not be enough to pay to replace the item with a brand-new one.
Replacement cost value: With this policy type, your insurance company will reimburse you for the full replacement cost of the damaged or stolen item. This would allow you to replace the item at today’s cost.
As a renter, HO-4 policies protect you against numerous events and hazards. But every insurance policy comes with exclusions. HO-4 policies don’t cover the following perils:
Earthquakes
Landslides
Mudslides
Sinkholes
Expensive belongings that exceed your coverage limits
Structural damage to the rental property
Policy exceptions can vary between insurers. Contact your insurance agent to determine what your HO-4 policy does and doesn’t include.
Renting is traditionally viewed as a precursor to owning a home, but a 2023 survey of renters by Avail, a Realtor.com company, found that only 30% were looking to purchase a home in the next 12 months.1 This is down from 35% in July 2022. One of the primary reasons for the delay among renters is concerns about inflation and rising interest rates.
If you prefer to rent, having proper renters insurance coverage is essential.
Having renters insurance not only protects you during covered events, but it can also provide peace of mind. Here are some of the key benefits of an HO-4 policy:
Protection for your belongings: An HO-4 policy covers the cost to repair or replace your possessions if they’re damaged, destroyed, or stolen.
Liability protection: Your policy protects you financially if someone is injured in your rental home or if you accidentally damage someone else’s property. This coverage can include protection for medical expenses and legal costs.
Loss of use: An HO-4 policy reimburses you for additional living expenses if you have to live somewhere else temporarily due to a covered peril.2
Peace of mind: Experiencing a disaster or other covered event is stressful enough without adding financial consequences. Knowing you’re covered through renters insurance can relieve some of that added stress.
Affordability: Renters insurance is typically very affordable, providing valuable coverage at a reasonable cost.
The national average cost of an HO-4 policy is $20 per month, or $240 per year, for a policy with $30,000 in personal property coverage and $100,000 in personal liability coverage, Insurify data shows.
HO-4 policies are much cheaper than home insurance policies, which average $215 per month, or $2,584 per year.
The table below shows average monthly renters insurance quotes from several different insurers, based on Insurify rate data.
Where you live plays a role in how much you pay for renters insurance. For example, the average cost of an HO-4 policy in Georgia is $272 annually, while an HO-4 policy in Iowa is $153, on average.
Some other factors that affect HO-4 policy costs include:
The value of the belongings and assets you want to protect
Coverage types and limits (for example, a jewelry insurance add-on will increase your overall policy costs)
Deductibles
Claims history
If you’re interested in an HO-4 policy, start by getting quotes from several insurance companies that offer renters insurance. Compare rates and coverages to find the best fit for your needs.
Once you’ve found the coverage you want, apply for the policy. You can typically apply for insurance coverage online through the insurer’s website, but some companies offer in-person or phone assistance.
The insurance company may ask you to provide personal and property information when getting a quote or applying. This information could include:
Your full name
Date of birth
Rental property address
Number of people living in the rental property
Safety features and other property details
Follow the insurer’s instructions to apply for a renters insurance policy.
If you’re looking for renters insurance, this additional information may help as you research your options.
An HO-6 policy, also known as condo insurance, provides more comprehensive coverage than rental insurance. It extends to the internal structure of an individual condo unit, including the walls, floors, and ceilings. It doesn’t include coverage of exterior walls or common areas.
An HO-4 policy applies specifically to people who are renting an apartment, home, condo, or other rental property. Coverage doesn’t include the structure itself — only the renter’s personal belongings, personal liability for the renter, and loss of use reimbursement for living expenses if the property is unlivable during repairs.
An HO-4 insurance policy protects your possessions in the event of covered perils. It also provides personal liability and loss of use coverage.
An HO-4 policy covers renters from personal liability for bodily injury or property damage that occurs within the rental property or that they cause through negligence. Rental insurance also helps pay third-party medical expenses and the policyholder’s legal fees stemming from any incidents covered by the policy.
You can file a renters insurance claim through your insurer. Depending on the insurance company, you can file a claim by phone, online, or through your insurer’s mobile app. Follow the instructions given by your insurance company to file a claim, upload the necessary documentation, and track the status of your claim.
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