HO-4 policy

What is an HO‑4 insurance policy?

Renters insurance, officially called an HO‑4 policy, is designed for people who lease their living space. While your landlord’s insurance pays for damage to walls and ceilings, an HO‑4 policy protects what’s inside, your furniture, clothes, gadgets and even your wallet if you’re sued for an accident. Think of it as a personal safety net that follows you from studio apartment to suburban rental home.

So, if a burst pipe ruins your sofa or a visitor slips on your rug, your HO‑4 policy can step in to cover the costs, subject to your limits and deductible.

Understanding an HO‑4 policy

Every renter’s policy comes with three core protections—personal property, liability and loss of use. Most insurance carriers list 16 named perils (fire, lightning, theft and more) that trigger coverage. You can choose how your belongings are valued:

• Actual cash value (ACV) – This type of coverage pays today’s depreciated price.
• Replacement cost – This coverage pays what it costs to buy the item new.

A VIU by HUB Advisor can walk you through the pros and cons so you don’t underinsure your favorite gear.

Types of renter’s insurance policies

Standard HO‑4 contracts cover the basics, but many carriers offer comprehensive versions that bundle in accidental damage or equipment breakdown. Beyond that, you can tailor protection with add‑ons (often called endorsements):

• Scheduled personal property – This add-on is for jewelry, art or collectibles.
• Flood or earthquake coverage – You can supplement with this where separate policies aren’t required.
• Identity theft – Cover expenses related to identity theft with an add-on to your HO-4 policy.

Always read the fine print to see what’s included vs. optional and budget for any extra premiums.

How does an HO‑4 policy work?

You pay a monthly or annual premium so that if a covered peril strikes, the insurance company helps cover the cost. File a claim online or through your advisor, pay your deductible, then receive payment (or direct repairs) up to your policy limits. Liability claims follow a similar path—the insurer investigates, negotiates and, if needed, pays legal fees and judgments on your behalf.

What does renters insurance cover?

Most policies pack three big benefits into one package:

• Personal property – Furniture, clothes, electronics and more are covered if damaged or stolen.
• Personal liability – You’re covered for legal and medical costs if you’re responsible for someone else’s injury or property damage.
• Loss of use – Hotel stays, restaurant meals and other living expenses are paid for if your place is unusable after a covered loss.

Many insurance companies also include medical payments to others for minor injuries, regardless of fault. Together, these protections cushion your wallet against life’s surprises.

What isn’t covered?

Even the best HO‑4 won’t pay for every mishap. Typical exclusions are:

• Building damage (your landlord’s responsibility)
• Floods or earthquakes without an endorsement
• Pest infestations
• Roommate belongings (unless specifically scheduled)
• High‑value items above sublimits
• Business equipment used for work

A quick policy review or chat with a VIU by HUB Advisor makes sure there are no unwelcome surprises.

Landlord insurance vs. HO‑4

Your landlord insures the structure: walls, roof, plumbing and shared spaces. Your renter’s policy covers everything you own, plus liability and extra living expenses. Together, the two policies create full protection for the property and its occupants.

Common covered perils

Renters insurance usually shields you from events like:

• Fire or smoke
• Theft or vandalism
• Burst pipes or accidental water discharge
• Wind or hail
• Falling objects
• Power‑surge damage
• Explosions
• Vehicle or aircraft impact

Check your declarations page for the exact list your carrier uses.

Add‑ons and endorsements

Want to personalize your safety net? Consider these upgrades:

• Replacement cost coverage for all belongings
• Water backup if a sump pump or sewer line overflows
• Pet liability for breeds excluded in standard wording

Add‑ons cost a bit more but can plug costly gaps.

Actual cash value vs. replacement cost

ACV policies charge lower premiums but subtract depreciation at claim time. Replacement cost coverage costs extra yet pays the full price to buy new equivalents. For electronics, furniture and trendy clothing, replacement cost often proves worth every penny.

Why an HO‑4 policy matters

Beyond peace of mind, renters insurance can:

• Protect savings from lawsuits or medical bills
• Satisfy lease requirements
• Offer budget‑friendly premiums (often $15–$25 per month)
• Provide flexible limits so coverage grows with your lifestyle

In short, it’s affordable protection that moves when you do.

How much coverage do you need?

Walk through your rental with a phone or notepad and total up replacement prices for:

• Furniture and electronics
• Clothing, shoes and accessories
• Kitchenware and small appliances
• Jewelry, sports gear or collectibles

Add a cushion for liability especially if you host gatherings or own pets. An advisor can fine‑tune numbers to match your budget.

What does HO‑4 insurance cost?

Most renters pay $15–$25 a month. Your rate depends on:

• Coverage limits and deductible
• Location and building security
• Credit score or claims history
• Chosen endorsements

Comparing insurance providers

Insurers vary in price, service and extras. Look for:

• Strong financial ratings and customer reviews
• Easy‑to‑use digital tools
• 24/7 claims support
• Customizable endorsements

Who should carry renters insurance?

If you rent from a downtown studio to an off‑campus house, an HO‑4 offers important protections. It’s especially smart for:

• Apartment tenants
• Single‑family home renters
• College students living off campus
• Tenants in multi‑unit buildings

How to buy HO‑4 coverage

Ready to protect your space? Follow these steps:

1. Catalog your belongings with photos or video.
2. Pick property and liability limits that match your lifestyle.
3. Compare quotes (your VIU by HUB Advisor can help).
4. Add any endorsements you need.
5. Purchase and save digital copies of your policy.

Set a calendar reminder to review coverage every year or after major purchases.

Getting the most out of your policy

Small actions can stretch your premium dollars:

• Install smoke detectors or a security system.
• Bundle renters and auto insurance.
• Update your inventory and limits annually.
• Ask about loyalty or claims‑free discounts.

These tweaks keep protection current and potentially lower costs.

How to file a renters claim

If disaster strikes:

1. Snap photos and list damaged items.
2. Contact your insurance company (or your VIU by HUB Advisor) right away.
3. Submit a proof‑of‑loss form plus receipts.
4. Cooperate with the adjuster’s inspection.
5. Receive payment or repairs according to policy terms.

Keeping digital records speeds up every step.