Renters Insurance

The HO-4 renters policy is a combination of property and liability coverages. The HO-4 policy is tailored to meet the needs of a tenant. The following is a basic outline of the HO-4 Renters Policy and the endorsements most widely used on the HO-4 policy.

The HO-4 policy provides coverage for a tenant of a single family residence or a tenant of an apartment. The policy focuses on loss to personal property and loss to additions. Coverage for legal liability is also included. The HO-4 policy does not include coverage for the dwelling and other structures because a tenant does not have an insurable interest in the building. However, the HO-4 policy provides coverage for building additions and alterations made by the tenant. Personal Property is covered against direct physical loss caused by a specified peril. In addition to the coverages provided under Section I of the policy, additional coverages are included for debris removal, fire department service charges, loss assessment charges, reasonable repair charges, and property removal charges. Payment is also made for loss involving credit cards, forgery, and counterfeit money. The additional coverages are included to provide additional protection in the event of certain peril losses. All additional coverages are subject to certain limitations and conditions.

Personal Property

This is the primary limit of insurance coverage for the H0-4 policy. Coverage C provides worldwide coverage for personal property of the insured. Special limits apply to some types of property, and some types of property are excluded from coverage. The insured selects the limit of coverage which is determined by the value of personal property owned.

Loss of Use

Coverage D applies if a peril insured against under Coverage C makes the residence unsuitable for living. Payment would be made for expenses incurred to live elsewhere following the loss. The limit for Coverage D is 20% of Coverage C.

Personal Liability

Section II of the renters policy provides liability coverage for personal loss exposures. The insuring agreement under Coverage E provides liability coverage if a claim is made or suit is brought against an insured because of bodily injury or property damage. Coverage is provided for the named insured and members of the insured's household who are relatives. Personal Liability has a basic limit of $100,000 per occurrence. The insured may increase this limit for an additional premium. In addition to the basic limit, Coverage E also provides additional coverage for expenses such as defense cost, expenses incurred providing first aid to others, damage to property of others and loss assessment charges.

Medical Payments

This coverage will pay the necessary medical expense for bodily injury of others. Coverage applies to accidents that occur on the insured premises or any location when caused by action of the insured. This coverage has a basic limit of $1,000 per person. The insured may select higher limits for an additional premium.

Endorsements

Inflation Guard Endorsement

When this endorsement is added to the policy it increases the limit of Coverage C and D. The insured selects the percentage of increase for the year and limits are automatically increased at certain dates throughout the year.

Earthquake Coverage Endorsement

Earthquake coverage is excluded under Section I of the policy. Adding this endorsement removes the exclusion and adds earthquake coverage which is subject to a deductible for each coverage under Section I.

Scheduled Personal Property

The scheduled personal property endorsement is used to provide coverage for risk of direct loss for such items as jewelry, furs, cameras, musical instruments, silverware, golfer's equipment, fine arts, postage stamps and rare coins. Scheduled property can be insured for any amount the insured requires.

Increase Special Limits

Certain types of personal property under Coverage C has special limits of liability. Adding this endorsement increases the special limit.

Building Additions/Alterations

The policy provides additional coverage for building improvements or installations, made or acquired at the tenants expense. The basic limit is 10% of Coverage C limit, adding this endorsement increases the basic limit.

Water Bed Liability

This endorsement provides coverage for liability arising out of an insured's ownership or use of a water bed on the residence premises.

Deductible

The renter's policy has a standard deductible of $250. The insured may reduce the deductible to $100 or increase it to $500, $1,000 or $2,500.