HO-4, otherwise known as renters insurance, is designed for people who rent apartments, houses or condos and do not own the structure they live in. The three core coverage areas are personal property protection, personal liability coverage and additional living expenses (ALE). HO-4 does not cover the building itself, as it's a responsibility that falls to the landlord's insurance policy.
What Is HO-4 Insurance?
Updated: April 30, 2026
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Key Takeaways
An HO-4 policy is the standard renters insurance form that covers personal belongings, liability and additional living expenses for tenants who do not own the building they live in.
HO-4 renters insurance uses named-peril coverage, protecting against 16 specific risks under the standard ISO HO-4 form, including fire, theft, vandalism and certain types of water damage.
Landlords have their own insurance to protect the property itself, but it does not cover a tenant's personal property.
What Is an HO-4 Insurance Policy?
Personal Property Protection
Renters insurance covers personal belongings like furniture, electronics, clothing and appliances against named perils such as fire, theft and vandalism. Standard HO-4 policies offer personal property limits ranging from $20,000 to $100,000. Renters can choose between actual cash value (ACV) settlement, which accounts for depreciation, and replacement cost value (RCV) settlement, which pays the full cost to replace the item at today's prices.
Liability Protection
HO-4 liability coverage pays for legal costs and settlements if someone is injured in your rented space or if you accidentally damage someone else's property. Tenants can choose from $100,000 in personal liability coverage to $300,000, with options to increase the limit for additional premium.
Medical Payments to Others
Medical payments to others coverage pays minor medical bills for guests injured in your rental unit regardless of fault. HO-4 limits for this coverage are $1,000 to $5,000 per person, depending on the provider, and apply only to non-household members.
Additional Living Expenses
Additional living expenses (ALE) coverage pays for temporary housing, meals and other costs if a covered peril makes your rental unit uninhabitable. ALE reimburses the difference between your normal living costs and the increased expenses incurred during displacement.
What Perils Are Covered Under HO-4?
HO-4 uses named-peril coverage, meaning only risks listed in the policy are covered, the same peril basis used in an HO-2 policy.
Fire and Smoke Damage
HO-4 renters insurance covers damage to personal property caused by fire or smoke, including damage from a fire that originates in another unit of the building.
Theft
Renters insurance covers stolen personal belongings whether the theft occurs inside the rental unit or, in many cases, away from home through off-premises theft coverage. Filing a police report supports your claim.
Vandalism
HO-4 vandalism coverage protects against intentional damage to your belongings by another person. Coverage applies only while the rental unit is occupied; extended vacancy may void vandalism protection under most policies.
Sudden and Accidental Water Damage
Renters insurance covers water damage from burst pipes, appliance failures or accidental overflow. HO-4 policies do not cover gradual leaks, seepage or water damage caused by lack of maintenance.
Windstorms and Hail
HO-4 renters insurance covers personal property damaged by windstorms, hail, tornadoes and hurricanes. Some coastal or high-risk areas may exclude windstorm damage or require a separate windstorm deductible.
Other Named Perils
Under the standard ISO HO-4 form, policies also cover damage from lightning, explosions, volcanic eruption, falling objects, the weight of ice or snow, power surges and several other listed causes of loss, totaling 16 named perils in all.
What Does HO-4 Insurance NOT Cover?
HO-4 renters insurance does not cover the building structure, flood damage, earthquake damage, a roommate's belongings or the full value of high-cost items without an added endorsement.
Building Structure
The landlord's insurance policy covers the physical structure of the rental property, including walls, floors, the roof and built-in fixtures. Your HO-4 renters insurance policy does not duplicate that structural coverage.
Flood Damage
Standard HO-4 policies exclude flood damage. Renters in flood-prone areas need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private flood insurer.
Earthquake Damage
Earthquake damage is not covered under a standard HO-4 renters insurance policy. Renters in seismically active states like California may need a separate earthquake endorsement or standalone earthquake policy.
Roommate's Property
HO-4 covers only the policyholder's belongings unless roommates are listed on the policy. Each roommate should carry a separate renters insurance policy or be added as a named insured to share coverage.
High-Value Items Beyond Sublimits
Expensive items like jewelry, art, collectibles and musical instruments often have sublimits — typically $1,000 to $2,500 per category under a standard HO-4 policy, consistent with common ISO form defaults. A scheduled personal property endorsement increases coverage to the item's full appraised value.
HO-4 vs. HO-3: Renters vs. Homeowners Insurance
The dividing line between HO-4 and HO-3 is property ownership. Renters and homeowners carry different risks and need different policy forms to match. Because a renter does not own the structure, the HO-3 policy includes dwelling coverage that an HO-4 policy intentionally omits. Both forms share core coverage components, but their scope and average costs differ in ways that matter when choosing the right coverage.
Who It's For | Tenants | Homeowners |
Structure Coverage | Not included | Included (open perils) |
Personal Property | Included (named perils) | Included (named perils) |
Liability | Included | Included |
Additional Living Expenses | Included | Included |
HO-4 vs. Landlord Insurance: What's the Difference?
Many renters assume their landlord's insurance covers their belongings, but it does not. The landlord's policy, often a DP-1 or DP-3 form, covers the building structure and the landlord's liability, not the tenant's property. Understanding this gap is the primary reason every tenant needs a separate HO-4 policy.
Personal Property | Covered | Not covered |
Building Structure | Not covered | Covered |
Liability | Covered (tenant's liability) | Covered (landlord's liability) |
Loss of Use / ALE | Covered | Covers landlord's lost rental income |
HO-4 Insurance: Bottom Line
For most renters, an HO-4 policy is the only financial protection standing between a covered loss and an out-of-pocket expense. Comparing renters insurance quotes helps confirm that your coverage limits match the actual value of your belongings and that your liability limit is adequate for your situation. Check that personal property limits reflect what you own and consider whether cheap renters insurance comparisons offer useful benchmarks for evaluating your own renters coverage costs.
Understanding HO-4 Insurance: FAQ
These frequently asked questions cover what an HO-4 policy is, what it covers and why renters need their own policy even if their landlord has insurance.
What is an HO-4 insurance policy?
An HO-4 policy is the ISO form number for renters insurance, designed for tenants who do not own the building they live in. HO-4 covers personal property, personal liability and additional living expenses but does not cover the rental property's structure.
Is HO-4 the same as renters insurance?
Yes. HO-4 is the industry designation for a standard renters insurance policy. Most insurers sell it under the name "renters insurance" rather than referencing the form number.
What does HO-4 insurance typically cover?
HO-4 covers personal belongings against 16 named perils under the standard ISO HO-4 form, personal liability up to the policy limit and temporary living costs if a covered event makes the rental uninhabitable. The policy does not cover flood damage, earthquake damage or the building structure.
Does renters insurance cover the building itself?
No. The building structure is covered by the landlord's insurance policy, not the tenant's HO-4 policy. Renters insurance covers only your personal belongings, your liability and your displacement costs.
Do I need HO-4 insurance if my landlord has insurance?
Your landlord's insurance does not cover your personal property or your liability as a tenant. If a fire destroys your belongings or a guest is injured in your unit, only your own HO-4 renters insurance policy pays those costs.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!