But, it doesn’t have to be:
There are only a few types of policies that are actually for your home and learning how they work isn’t hard.
In this post today, I will go over the differences between an HO4 policy and an HO6 homeowners insurance, how they work and how to choose between the two.
What’s An HO4 & HO6 Insurance Policy
Before we can talk about the differences between an HO4 and an HO6 policy, we first must understand how each plan works individually.
What is An HO6 Homeowners Policy
An HO6 policy is just the technical name for Condominium Insurance and is going to be for a condo owner.
This type of policy traditionally will only cover your personal property, personal liability, your walls, floors, and your ceilings when you live in a condo.
However, just like renters insurance, it doesn’t cover the actual structure of the building nor will your homeowner’s associations master insurance policy cover your personal items.
An HO6 policy is a named perils policy for both your personal items and your property, which means it will only cover your items if they are damaged by the set of specific perils listed in the policy.
What is An HO4 Homeowners Policy
Also known as Tenant’s Form insurance, the HO-4 policy is actually a more complicated name for renters insurance.
A rental policy will cover a renters personal property, personal liability, and some of them will cover loss of use.
Loss of use is if you are unable to stay in your rental because it is uninhabitable, the insurance company will pay for your lodging and food.
Your belongings are covered by the same perils in an HO-2 broad form homeowners insurance policy.
This policy type is specifically for renters, since it covers only belongings and personal liability — not the building structure, which should be covered by the landlord’s insurance.
An HO4 renters policy is also a type of named perils policy and will cover your apartment or items damaged by:
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HO4 vs HO6 Homeowners Policy
The largest difference between the two policies is going to be that an HO4 policy is specifically for a rental and an HO6 policy was created for a condo.
Both of these policies work under the named peril guidelines when it comes to filing a claim; however, the HO6 policy will cover your interior walls that you own while an HO4 policy is usually just for your items in a rental.
An HO4 & HO6 policy are the same in that they will not cover any of the building items outside of your condo or rental and they also won’t cover the shared spaces like a gym.
You should also try to get a policy that will give you replacement cost coverage no matter which policy you choose.
Here is what it looks like:
Dwelling Coverage (coverage for your physical house, inside and out)
No Coverage (only the interior walls)
Personal Property Coverage (coverage for your stuff)
Actual Cash Value / Replacement Cost
Should I Get An HO-4 OR HO-6 Policy?
You can only get an HO6 policy if you are moving into a condo so there really isn’t much to decide when it comes to this.
If you are renting out a house, apartment, or condo, you are going to need an HO4 policy and you will not be able to purchase an HO6 policy for a rental.
Keep in mind if you are renting, the policy your landlord will have on the unit will not cover your items; you will need your own rental policy.
In General, Who’s It For?
HO4 policies are available for rental properties only.
HO6 policies are going to be for a condo owner and it will cover your personal property and personal liability when you live in a condo.
Who Has The Best Rental Insurance Policy?
We have found the best renters insurance to come from Jetty, you can check out or quick review below.
About Jetty Renters Insurance
Jetty is the newest entrant into the renters insurance world but is backed by State National Insurance company.
As of today State National has an A (Excellent) rating with A. M. Best.
Simply Insurance Thinks
Jetty is going to be your best option for purchasing a rental insurance policy fast.
You can get a quote and have coverage in under a few minutes and move into your rental with same day coverage.
Want to learn more? Check out our full Jetty Insurance Review.
Who Has The Best Condo Insurance Policy?
We have found the best home insurance to come from Hippo, you can check out or quick review below.
About Hippo Home Insurance
Hippo is the newest entrant into the home insurance world but is backed by TOPA Insurance company.
As of today TOPA has an A- (Excellent) rating with A. M. Best.
Hippo believes that great homeowners insurance should be affordable, smart, convenient, and fast.
Hippo wants to make sure that you are able to get a homeowners insurance policy that covers you for the most relevant things today.
A Free (Roost Water Leak Sensor) With Every Policy
With every policy Hippo offers a free Roost water leak sensor that has a value of $50.00. According to Roost, you can outsmart water with their smart water leak and freeze detector. The way it works is that you place it anywhere the potential for flooding or leaking exists and if it senses water it will send an alert to your smart phone.
Simply Insurance Thinks
Hippo has come out of the gates swinging at its competitors with on average 25% lower premiums. They also have a much faster application and approval process which doesn’t require an agent to complete. Hippo is the best answer if you need fast quotes and fast coverage.
Want to learn more? Check out our full Hippo Insurance Review.
There is no reason to go without condo insurance or renters insurance, in fact, over 70% of people don’t even shop for their homeowners insurance.
They just take what’s offered by a real estate agent or mortgage broker.
Now that you understand the differences between and HO4 and HO6 policy it’s time to take action.
Remember, your policy should be unique to your specific situation and regardless of which policy type you choose, it needs to make sense for your home and personal property.
Check out our above reviews or click the above buttons to get a few quotes for renters or condo insurance.