Renters Insurance, also known as an HO-4 policy, offers protection for your belongings if you are a renter. It can also provide you with liability coverage. Although renters in Wisconsin are not required by law to carry Renters Insurance, some landlords may require you to show proof of insurance as a part of your lease agreement with them.
What is an HO-4 Policy?
Renters Insurance is coverage that protects your personal property from events like fires or break-ins. If your personal items are lost or damaged, the insurance coverage will help pay to replace them. An HO-4 policy includes liability protection, as well. That means if someone was injured while on your rental property, the policy can pay for the injured person’s medical bills and cover any legal fees you may face if you are taken to court.
The Two Types of Rental Insurance Policies
There are two types of Rental Insurance policies to choose from: actual cash value and replacement cost value.
Actual Cash Value
An actual cash value policy is more affordable than a replacement cost policy; however, it will not pay the full price to replace your damaged or stolen goods. Both the age and the condition of the item are considered by the insurer when determining your compensation. The amount you receive may be much less than you anticipated.
Replacement Cost Value
With replacement cost value insurance, you receive the amount it would cost to replace your damaged or stolen item if it were purchased brand new. This policy is slightly more expensive than an actual cash value policy but is highly recommended. Aside from paying your deductible, you will not be expected to contribute any funds when replacing your lost or damaged items.
What Perils Does Rental Insurance Cover?
Residents of Janesville, WI, know we face frigid winters and endure freezing temperatures, making walking around outdoors dangerous for many. A rental insurance policy can take care of damages and fees caused by weather such as the cost of damage to your personal property due to hail, windstorms, lightning, fire, theft, and vandalism.
Keep in mind there are some common exclusions to rental insurance. Most policies will not cover the cost of damages caused by flooding. If you are a renter and your personal property is damaged due to a flood, equipment such as computers and electronics will not be covered. To find out what is not covered under your HO-4 policy, get in touch with our team here at Adam Johnston Insurance today.
Final Thoughts
Even though it is not required by law to purchase an HO-4 insurance policy in the State of Wisconsin, most landlords will require this coverage in your lease agreement. There are many benefits to having Renters Insurance. You can ensure your personal property is safe from any perils such as fire, hail, or lightning. And you can benefit from liability protection that will cover the cost of any medical bills or legal fees you may face if a third-party is injured on your rental property.
If you haven’t updated your insurance coverage, it may be time to discuss any recent changes with your agent. They will calculate the cost of your potential losses to ensure you have the right amount of rental insurance to keep your belongings safe.
To learn more about HO-4 insurance, contact Adam Johnston Insurance in Janesville, WI at (608) 755-8322. Our licensed professionals will be happy to answer any questions you have.
