What Coverages Are Included in Renters Policies?
Most renters policies include three primary protections:
Personal Property Coverage, which may protect belongings that a policyholder owns
Personal Liability Coverage, which may protect against certain potential liability lawsuits
Additional Living Expenses Coverage, which may cover alternative housing following a disaster
In addition to these three primary protections, some renters policies might offer other coverages as standard or optional features. Tenants who know of another specific coverage that they want should speak with an insurance agent who specializes in renters policies. A specialized agent will be familiar with what coverages are available and what policies offer them.
What Costs Do Renters Liability Insurance Protections Cover?
The renters liability insurance protections included in a policy, such as personal liability coverage, normally help pay legal fees, judgements and settlements associated with covered claims. In many cases, renters liability insurance protections will begin paying legal fees for covered claims as soon as the claim is filed — and before there’s a final judgement or settlement.
What is Actual Cash Value and Replacement Cost Coverage?
The personal property coverage offered in renters policies is frequently written as either actual cash value coverage or replacement cost coverage. Policies with actual cash value coverage normally protect belongings up to their fair-market value, which takes into account depreciation. Those that have replacement cost coverage typically protect belongings up to the price that it’d cost to replace them, which often is more than the depreciated value.
What is an HO-4 Renters Policy?
Renters policies are given abbreviations within the insurance industry, and their abbreviations tend to start with “HO” because they’re grouped with homeowners policies. Most policies that have the same abbreviation will offer similar protections.
An HO-4 renters policy is a fairly standard renters policy. It’s suitable for many tenants’ needs, and those who do need more coverage frequently end up building on the foundational protections offered by an HO-4 policy.