HO-4 renters insurance, explained

What an HO-4 renters policy covers — belongings, liability, and loss of use — why the landlord's policy doesn't protect you, and why it costs so little.

An HO-4 is the official name for renters insurance. It covers what you own and what you're responsible for, without insuring a building you don't own.

Who this is for: anyone renting an apartment, house, or room. If your name is on a lease, this is your policy form.

Your landlord's policy vs yours

This is the piece that trips people up. Your landlord carries insurance on the building: the walls, the roof, the structure itself. That policy does nothing for your belongings. If a kitchen fire ruins your furniture and clothes, the landlord's insurer covers the kitchen, not your couch. An HO-4 fills exactly that gap.

What an HO-4 covers

A renters policy bundles three protections:

Personal property. Your furniture, electronics, clothing, and everything else you own, covered against a broad list of named perils like fire, smoke, theft, vandalism, windstorm, and water damage from burst pipes or appliance leaks. Coverage typically follows your stuff outside your home too, so a laptop stolen from your car or a hotel room is usually included.
Personal liability. If a guest is injured in your place or you accidentally damage someone else's property, this covers legal costs and damages up to your limit. It's the quiet workhorse of the policy.
Loss of use. If a covered event makes your rental unlivable, this pays the extra cost of living somewhere else while things get sorted, like a hotel and meals beyond your normal expenses.

What it doesn't cover

The building itself, which is the landlord's job. Like other homeowners forms, an HO-4 also excludes flood and earthquake, which need their own policies, plus normal wear and tear and pest damage. High-value items like jewelry, instruments, or camera gear often have low built-in limits, so it's worth asking about scheduling those separately if you own something special.

Why it's inexpensive

Renters insurance is usually the cheapest policy in the whole homeowners family, and the reason is simple: there's no building to insure. The structure is the expensive part of any home policy, and an HO-4 skips it entirely. You're covering belongings and liability, which cost insurers far less. Many carriers also discount your auto policy when you bundle a renters policy with it, which can shrink the effective cost even further.

Choosing your limits

Two decisions shape the policy: how much your stuff is actually worth (walk through your place and add it up honestly; it's more than most people guess) and whether you want replacement cost coverage, which pays what it costs to buy new rather than the depreciated value of your five-year-old TV. Replacement cost is usually a small upgrade and usually worth it.