HO-4, otherwise known as renters insurance, is designed for people who rent apartments, houses or condos and don't own the structure they live in. The three core coverage areas are personal property protection, personal liability coverage and additional living expenses (ALE). Building coverage falls to the landlord's policy, not the renter's.
What Is HO-4 Insurance?
Updated: June 27, 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 don't 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 doesn't cover a tenant's personal property.
What Is an HO-4 Insurance Policy?
Personal Property ProtectionRenters 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 ProtectionHO-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 OthersMedical 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 ExpensesAdditional 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 DamageHO-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.
TheftRenters 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.
VandalismHO-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 DamageRenters insurance covers water damage from burst pipes, appliance failures or accidental overflow. HO-4 policies don't cover gradual leaks, seepage or water damage caused by lack of maintenance.
Windstorms and HailHO-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 PerilsUnder 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 doesn't 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 StructureThe 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 doesn't 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 DamageEarthquake 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 PropertyHO-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 SublimitsExpensive items like jewelry, art, collectibles and musical instruments often have sublimits, usually $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
Renters and homeowners carry different risks, and policy forms reflect that. HO-4 is built for renters; HO-3 is built for owners. The structural gap between them is literal: renters don't own the building, so HO-4 drops dwelling coverage entirely. Both forms cover personal property and liability, but scope and cost diverge enough that picking the wrong one leaves real gaps.
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?
Renters often assume the landlord's policy covers their belongings. It doesn't. A DP-1 or DP-3 covers the building and the landlord's liability, not anything inside a tenant's unit. That gap is exactly why a separate HO-4 policy exists.
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
An HO-4 policy is often the only financial protection a renter has between a covered loss and a full out-of-pocket expense. Getting quotes from multiple insurers confirms whether your coverage limits actually reflect what you own and whether your liability limit holds up for your situation. For cost benchmarks, cheap renters insurance comparisons give a useful baseline 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 a separate policy even when their landlord carries insurance.
An HO-4 policy is the ISO form number for renters insurance, designed for tenants who don't own the building they live in. HO-4 covers personal property, personal liability and additional living expenses but doesn't cover the rental property's structure.
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.
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 doesn't cover flood damage, earthquake damage or the building structure.
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.
Your landlord's insurance doesn't 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 expert in insurance and economics. He has spent nearly a decade covering the market, first at LendingTree and now at MoneyGeek, where he analyzes hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College before earning a master's in economics and international relations from Johns Hopkins University. Before MoneyGeek, he worked in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.