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What Is Renters (HO-4) Insurance

Renters insurance, also known as HO-4 insurance, is a type of homeowners insurance policy that provides coverage for individuals who rent a home or apartment. This type of home insurance is designed to protect renters from financial losses due to damage or loss of their personal property, as well as liability claims that may arise due to accidents or injuries that occur on the rental property.

What does renters insurance cover?

Renters insurance typically covers a wide range of risks, including:

  • Damage or loss of personal property due to fire, smoke, lightning, windstorm, hail, explosion, water damage from plumbing, freezing, and falling objects.
  • Theft of personal property, including items that are stolen from your vehicle if it is parked on the rental property.
  • Vandalism and malicious mischief.
  • Liability coverage for accidents or injuries that occur on the rental property, such as if a guest is injured in your apartment. This includes legal defense costs if you’re sued.
  • Additional living expenses if the rental property becomes uninhabitable due to a covered loss. This can include the cost of temporary housing, food, and other necessary expenses while your rental property is being repaired or rebuilt.
  • Medical expenses for guests injured on the rental property, regardless of who is at fault.
  • Some policies may also offer optional coverage for high-value items such as jewelry, art, and collectibles, as well as coverage for identity theft.

What does renters insurance not cover?

Renters insurance typically does not cover certain risks, such as:

  • Damage or loss caused by floods or earthquakes. These types of perils typically require separate policies.
  • Damage or loss caused by normal wear and tear.
  • Damage or loss caused by intentional or criminal acts by the policyholder or their family members.
  • Damage or loss to the rental property itself. This is the responsibility of the landlord or property owner.
  • Business-related property or activities.
  • Some high-value items like jewelry or fine art may require additional coverage or a rider, as they may have limits on the coverage amount for these items.
  • Pets or pet-related injuries.

How much does renters insurance cost?

The cost of renters insurance can vary depending on several factors, such as the location of the rental property, the amount of coverage needed, and the deductible selected. According to the NAIC, the average yearly premium for renters insurance is $173, or approximately $14.4 per month. However, the cost can be higher or lower based on your individual circumstances.

Insurance RangeYearly PremiumMonthly Premium
$13,999 and under$132$11
$14,000 – $19,999$143$12
$20,000 – $25,999$162$15
$26,000 – $31,999$179$14
$32,000 – $37,999$171$14
$38,000 – $43,999$203$17
$44,000 – $49,999$192$16
$50,000 – $74,999$229$19
$75,000 – $99,999$288$24

How much renters insurance do you need?

The amount of renters insurance you need will depend on the value of your personal property and your unique needs. Typically, it is recommended to purchase enough coverage to replace all of your personal property if it were to be damaged or destroyed. Additionally, it is important to consider the amount of liability coverage you need to protect yourself from potential lawsuits.

Should you get renters insurance?

Renters insurance is not legally required, but it is strongly recommended. It can provide financial protection for your personal property and liability coverage in case of accidents or injuries that occur on the rental property. Additionally, many landlords and property management companies require tenants to have renters insurance as a condition of the lease agreement.

What is the difference between HO4 and HO6?

HO6, also known as condominium insurance, is designed for renters of condominiums or townhouses. It provides coverage similar to HO4, but it also includes coverage for damage to the interior of the unit, including walls, floors, and ceilings. This is important because in a condominium or townhouse, the policyholder is responsible for insuring their unit’s interior while the association or landlord insures the building’s structure and common areas.

HO6 policies often include coverage for personal property, liability, additional living expenses, and assessments made by the association in the event of a loss.

It is important to note that HO6 policies are designed for condominiums and townhouses, not for single-family homes.

  • HO4 and HO6 are both types of renters insurance policies, but they are designed for different types of rental properties.
  • HO4 is also known as renters insurance, it is designed for renters of single-family homes or apartments.
  • HO6 is also known as condominium insurance, it is designed for renters of condominiums or townhouses.
  • HO6 provides coverage for personal property and liability, but it also includes coverage for damage to the interior of the unit, including walls, floors, and ceilings.

Where to get renters insurance?

Renters insurance can be purchased through a variety of sources, including:

  • Insurance agents or brokers
  • Insurance companies directly
  • Online insurance providers
  • Some companies offering home services like cable, internet or home security may offer bundle packages
  • It is recommended to compare rates and coverage options from multiple providers to find the best policy for your needs and budget.

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