HO-4 – Renters Insurance
Definition:
A policy designed for tenants that insures personal property and liability but not the building itself.
Explanation:
Renters insurance covers belongings against named perils and provides liability protection. The landlord’s policy covers the structure.
Example:
If a fire damages your rented apartment, HO-4 pays to replace your furniture and electronics but not the building.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.