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What an HO4 Policy Covers
An HO4 insurance policy works on a named-peril basis — meaning it only pays for losses caused by hazards specifically listed in your policy. The most commonly covered perils include fire and lightning, theft, vandalism, windstorm and hail, smoke damage, explosion, falling objects, and accidental water discharge from plumbing or HVAC systems.
There are three core components every HO4 policy includes:
Personal Property Protection
This is the heart of any HO4 policy. It covers the cost to repair or replace your personal belongings — furniture, electronics, clothing, kitchenware, and more — when they're damaged or stolen due to a covered peril.
One important choice to make: Actual Cash Value (ACV) vs. Replacement Cost Value (RCV). ACV pays what your item is worth today (after depreciation), while RCV pays what it would cost to buy a new equivalent item. RCV policies typically cost a little more but provide significantly better protection.
Example: If your 3-year-old laptop is stolen, an ACV policy might pay $400 while an RCV policy pays the full $1,100 to replace it.
High-value items like jewelry, collectibles, or musical instruments may have sub-limits under a standard policy. You can add a scheduled personal property rider to ensure full coverage for those items. Learn more about personal property coverage limits and how to protect high-value belongings.
Personal Liability Coverage
If someone is injured in your rental unit — a guest trips and falls, your dog bites a visitor — or if you accidentally damage someone else's property, your HO4 liability coverage steps in. It pays for:
- Legal defense costs
- Court-ordered settlements or judgments
- Medical expenses for the injured party
Most policies offer liability limits starting at $100,000, though many renters elect $300,000 or more depending on their assets and risk exposure. The cost difference between $100K and $300K in liability coverage is usually just a few dollars per month.
Loss of Use (Additional Living Expenses)
If a covered peril — like a fire or burst pipe — makes your rental uninhabitable, loss of use coverage pays for the extra costs you incur while you're displaced. This includes hotel stays, meals above your normal spending, laundry, and even pet boarding. Learn more about how loss of use coverage works and what expenses qualify.
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What HO4 Does NOT Cover
Understanding the exclusions is just as important as understanding the coverage. Here's what falls outside a standard HO4 policy:
| Exclusion | Why It's Not Covered | Your Options |
|---|---|---|
| Flood damage | Not a named peril on standard policies | Purchase a separate flood insurance policy |
| Earthquake damage | Excluded from all standard policies | Add earthquake endorsement or separate policy |
| The rental building | Landlord's responsibility | Covered under landlord's insurance |
| Roommate's belongings | Each tenant needs their own policy | Roommates should get separate HO4 policies |
| Business equipment | Home-based business use excluded | Add a business property endorsement |
| Wear and tear / pests | Maintenance issues, not sudden losses | Preventative maintenance is your responsibility |
| Intentional damage | Insurance doesn't cover willful acts | N/A |
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HO4 vs. HO6: What's the Difference?
These two policy types are often confused, but they serve different types of residents. HO4 is exclusively for renters, while HO6 is designed for condo owners.
The key difference is that condo owners are responsible for their unit's interior — walls, flooring, cabinets, and improvements — which their HO6 policy covers. Renters carry no such responsibility, so their HO4 policy skips that coverage entirely. Read our full HO6 insurance guide if you own a condo unit.
If you're curious how these policies stack up against homeowners insurance forms used for houses, check out our HO-3 vs HO-5 comparison or learn about named perils vs. open perils coverage.
HO4 Policy Costs, Coverage Limits & Who Needs It
How Much Does HO4 Renters Insurance Cost?
Renters insurance is one of the most affordable insurance products available. According to 2026 national data, most renters pay between $13 and $17 per month — roughly $150 to $200 per year — for a standard policy with $30,000 in personal property coverage, $100,000 in liability, and a $500 deductible.
| Coverage Level | Est. Monthly Cost | Est. Annual Cost |
|---|---|---|
| Basic ($15K property / $100K liability) | ~$11–$13/mo | ~$132–$156/yr |
| Standard ($30K property / $100K liability) | ~$14–$17/mo | ~$168–$204/yr |
| Higher ($50K property / $300K liability) | ~$20–$28/mo | ~$240–$336/yr |
Rates vary by state. Renters in high-risk cities like Houston typically pay more than renters in lower-risk markets like Seattle. Your credit score, claims history, deductible amount, and selected coverage limits all influence your final premium.
Can Your Landlord Require Renters Insurance?
Yes — and it's becoming increasingly common. Landlords in most U.S. states can legally require tenants to carry HO4 renters insurance as a condition of the lease agreement. This protects the landlord from liability disputes and encourages tenants to have financial protection in place.
Common minimums landlords require:
- $100,000 in personal liability coverage
- Proof of an active policy at move-in (and sometimes annually)
- Listing the landlord as an "interested party" on the policy
Requiring renters insurance does not mean the landlord's policy will cover your belongings — it simply ensures you have your own protection. For more on how landlord policies work separately from yours, see our landlord insurance guide.
Common Misconceptions About HO4 Coverage
Myth 1: "My landlord's insurance covers my stuff." This is the most dangerous misconception renters carry. A landlord's policy covers the building structure and the landlord's property — period. Your personal belongings, your liability, and your temporary housing if displaced are entirely your own responsibility.
Myth 2: "Renters insurance is too expensive." At $13–$17 per month, renters insurance is one of the lowest-cost insurance products on the market. Many renters spend more on a single streaming subscription.
Myth 3: "I don't have enough stuff to insure." If you add up the replacement cost of your furniture, electronics, clothing, kitchen items, and other belongings, most renters are surprised to find their possessions total $20,000 to $40,000 or more.
Myth 4: "My roommate's policy covers me too." HO4 policies only cover the named insured. Your roommate's policy does not extend to your belongings or your liability.
How Much Coverage Should You Carry?
Determining the right coverage amount takes a little homework, but it's worth the effort:
- Do a home inventory — Go room by room and list your belongings at their current replacement cost, not what you originally paid. Free apps like Encircle or even a simple spreadsheet work well.
- Set your property limit — Your personal property coverage limit should be high enough to replace everything if a fire destroyed the entire contents of your unit.
- Assess liability risk — If you have pets, host guests frequently, or have meaningful savings or assets, consider at least $300,000 in liability coverage.
- Choose Replacement Cost over ACV — The premium difference is small, but you'll receive far more in a claim without depreciation eating into your payout.
- Review annually — If you've purchased new electronics, furniture, or valuables, update your coverage to reflect the change.
Frequently Asked Questions
Is an HO4 policy the same thing as renters insurance?
Yes — HO4 is simply the official insurance industry form number for standard renters insurance. When insurers refer to an "HO4 policy," they're describing the same product marketed as renters insurance. The HO stands for "homeowners," and the form number 4 designates it specifically for tenants renting a home or apartment.
Can my landlord legally require me to have an HO4 policy?
Yes. In most U.S. states, landlords can require tenants to carry renters insurance as a condition of the lease. This is fully legal and is increasingly included in standard lease agreements. Your landlord may require a minimum liability limit (commonly $100,000) and ask to be listed as an interested party on your policy.
Does HO4 renters insurance cover flood or earthquake damage?
No. Standard HO4 policies do not cover flood damage or earthquake damage — these are explicitly excluded from named-peril coverage. If you live in a flood-prone or seismically active area, you'll need a separate flood insurance policy and/or an earthquake endorsement or policy to fill that gap.
What's the difference between an HO4 and an HO6 policy?
HO4 is renters insurance for tenants — it covers personal property, liability, and loss of use, but not the building structure. HO6 is condo insurance for unit owners — it includes the same three core coverages but also extends to the interior of the owner's unit, including walls, flooring, and built-in fixtures the HOA master policy doesn't cover.
How much does an HO4 policy cost per month?
National averages for 2026 put renters insurance at roughly $13–$17 per month for a standard policy with $30,000 in personal property coverage and $100,000 in liability. Your exact premium will vary based on your state, city, credit score, deductible choice, and total coverage limits selected. Shopping multiple quotes is the best way to find the lowest rate for your situation.