HO4 vs. HO6: What's the Difference? - Credible (2024)

FAQs

What is the difference between HO4 and HO6? ›

What is the difference between an HO6 (condo) and HO4 (renters) insurance policy? The HO6 and HO4 both cover your personal property and personal liability, but only the HO6 condo policy has additional Coverage A for the interior finishing of the unit. If you own the condo, you need the HO6.

HO-6 provides limited dwelling coverage as well as contents coverage. HO-4 provides no dwelling coverage becaus a tenant doe not own the dwelling; the condo owner does own the condo and is provided with coverage for improvements.

While your landlord likely insures the physical structure of the building you live in, an HO-4 policy provides coverage for your personal possessions if they were to be damaged by a covered peril. On top of that, HO-4 policies provide liability insurance.

The main difference between an HO3 policy for a single-family home and an HO6 condo insurance policy is that while an HO3 covers the physical structure of your home itself, an HO6 policy only covers what's inside the walls of your condo.

HO-6 policies generally cover the same types of perils as homeowners insurance policies do for single-family homes, such as fire, explosions and theft. Typically, condo insurance policies include the following coverage types: Dwelling coverage: Dwelling insurance for condos is a central element with HO-6 insurance.

HO-4 insurance covers your personal property, additional living expenses, and liability. HO-4 policies will not cover damage to the structure of the place you're renting or damage to your belongings from excluded perils.

HO-5 (comprehensive form)

The HO-5 policy offers more protection than any other type of homeowners insurance. Personal property losses are repaid based on the replacement cost for the item, instead of the actual cash value. You'll have higher coverage limits and less restrictions on perils.

HO6 insurance provides: Building/Unit/Dwelling Coverage – Like homeowners insurance, it provides coverage against fire or smoke damage, storms, vandalism or internal plumbing issues like a burst pipe.

An HO-3 insures the contents of your house only for specific problems named in the policy, such as fire and wind. An HO-5 policy insures your belongings against all causes of damage that aren't excluded. Another key difference: HO-5 policies automatically include replacement cost coverage—HO-3 policies might not.

Renters insurance form: HO-4

A standard renters insurance policy is also known as an HO-4. This type of policy form helps protect a renter's personal belongings against 16 perils, says the III.

Why do landlords want you to have renters insurance? ›

Without a renters policy in place, damage or injury from a gathering gone wrong could be your responsibility. Renters insurance can help protect a landlord against tenant negligence. Tenant negligence can take many forms, ranging from a kitchen fire while cooking to water damage from an overflowing tub.

Negligent damage is the result of carelessness or neglect on the part of the tenant. This type of damage usually occurs when tenants fail to take proper care of the property or neglect to address issues that could lead to further damage.

It will not cover any plumbing, electrical, drywall, flooring, cabinets, personal property, etc…. So if the building needs to be rebuilt, you basically will be left with a shell. Also, if someone slips and falls in your unit, you can be held liable for any damages.

HO-4 insurance is another term for renters insurance. It covers the policyholder's personal belongings but not the physical structure of the rental home. Most HO-4 policies also include personal liability protection and cover additional living expenses if renters are temporarily displaced from their homes.

Homeowners insurance, by definition, is designed to cover only owner-occupied residences – not homes or units occupied by a tenant. Depending on the coverage you purchase, landlord insurance can offer protection from liability for accidents that occur on your rental property.

What is an HO4 policy? An HO4 policy, also called renters insurance, protects a renter's personal property and addresses their personal liability. In other words, it can help pay for: Replacing your property when it's stolen or damaged by a covered incident.

Hold onto your seats, because this might come as a shock: Renters insurance (referred to in the industry as an HO4 policy) is for renters, and homeowners (HO3) and condo insurance (HO6) are for policyholders who own their homes.

A DP3 policy covers the structure, loss of use or rental coverage, and usually personal liability. If you are renting out your property, it's a good practice to require your renters or tenants to have renter's insurance (HO4), because a DP3 policy offers limited coverage for their personal property.

The Higher Occupancy Homes (HOH) policy provides additional funds to renovate homes with a minimum of 4 bedrooms and 1,100 sq ft and provides priority in matching to Home Swap program participants with a family size of 5 or greater. HOH Eligibility.