If you are living in a rented house, have you thought about what happens to your personal property when catastrophe strikes? No, the landlord’s insurance does not cover it.
There exists a renters insurance that offers coverage to not only the personal belongings but also living expenses and liabilities in case of a disaster. It is known as the ho4 policy and it is a must for every person living on lease. It is a cherry on top of the cake if you have a dog and it bites one of your roommates. The insurance covers the lawsuit charges as well as medical bills.
Wonderful, isn’t it?
Let’s find out how H04 helps during tough circumstances
H04 covers these events
The damage of personal property will be covered in these circumstances and few more –
- A falling object
- Volcanic eruption
- Damage caused by vehicles
- Vandalism or malicious mischief
- Fire or lightning
- The weight of ice, snow or sleet
However, h04 does not cover earthquakes or floods and if you reside in a flood-prone area you must take the flood insurance.
What is renters insurance liability?
The liability part of the insurance protects you in case your action or negligence injures a fellow renter in the apartment. The insurance covers the lawsuit charges against you after an accidental injury.
If you own a pet and it causes any bodily injury to another person or any property damage the medical charges and any financial lawsuit charges are covered by the policy.
Not all companies provide liability insurance for a pet and some companies only have this service for certain breeds, so if you own a dog kindly check with your agent.
Cash vs Replacement
The policy offers two variations, replacement cost, and actual cash. Both have their pros and cons.
Replacement cost – If your 6-year-old laptop is damaged, the insurer will replace it with a brand new laptop regardless of its current value. These are more expensive as compared to the actual cash value because no matter how old your possession was, it is replaced by a brand new one.
Cash– Here only the amount of current value of the possession is covered
For example, your microwave is 15 years old, it is unlikely that you will receive any major amount to even purchase a new one. The value of a microwave decreases due to the deprecation depending on its age. This is cheaper but then again, if the unthinkable happens you will not get the full amount to replace your item.
H04 cover item stolen or damaged in a car
Your vehicle insurance does not cover your personal property damage, like your laptop that was stolen from your car or damaged. H04 policy covers the charges if something happens. However, only 10 % of the total property limit is covered. For example, if your personal property limit is 3000 dollars, then in case of your laptop being stolen outside your house, you will only receive 10 percent i. e. 300 dollars.
Is H04 insurance important?
Ye! Every furniture and personal belongings cost several bucks unless it is DIY sofas, and in case of an accident, you could be left with nothing if you do not have insurance.
Best part? Insurance not only covers your personal possession cost but also additional charges such as a hotel cost in case your apartment is damaged. The coverage includes meals, the laundry, and other expenses such as moving expenses if the house is not liveable after a disaster.
The H04 policy is much cheaper than the house insurance because it does not cover the structural damage cost of the house.
Here’s how to cut a few insurance costs– if you buy h04 insurance from your auto insurance carrier you may get a discount on your auto insurance because the carrier is now convinced you will extend your insurance in the future. By taking one or more policies from the same insurer, you can save 10-20 percent.
The national average cost for an H04 policy with coverage of $40,000 for personal property ( $1,000 deductible) and coverage of $100,000 of liability protection is $197, or $17 a month.
In conclusion, bad events are not in our hands as it could occur anytime without warning but the choice to be prepared lies with us. The vision of being left with nothing after a catastrophe should be motivation enough to gather resources and insurance that can prove beneficial during testing times. H04 policy is much required and a blessing in disguise.