Current renters insurance policies cover
personal property from a number of different occurrences, including
fires, theft, or wind damage. Back before the 1950s, there were
separate policies for the different accidents or incidences that
could occur, making it very expensive for renters to insure their
personal property. New policy forms were created in the 1950s,
and both homeowners and renters were able to purchase insurance
to cover their personal property from various perils all on one
insurance policy. Although this was a huge breakthrough for both
the insurance companies and the customers, the policies were somewhat
difficult to comprehend. Because the policies between various insurance
companies were so different, the need for a balanced insurance
A small company from New Jersey formed in the 1970s to simplify the current homeowners
insurance policies. It took many years to get all of the kinks worked out, but
that company finally created seven different homeowners insurance forms that
can cover several different situations. The most common policy is HO-3, which
is designed for homeowners who would like every aspect of their home covered,
ranging from the structure of the home to the furniture in their dining room.
This policy also covers liability accidents, in case anyone were to ever be injured
in the home.
There are also policies that offer less coverage than HO-3, such as HO-1 or HO-2.
These policies allow the customer to choose which items in their home they would
like covered, and from which accidents they would like their property covered.
These types of policies work best for those who are not interested in protecting
all of their property, because possibly it would not be hard for them to replace
it. These types of policies are also good for those who are already covered by
another insurance policy, since it would be unnecessary to have two insurance
policies covering one item.
HO-4 is what some refer to as renters insurance. Renters insurance is like homeowners
insurance for renters, since it covers the personal property that is not covered
by the landlord’s insurance policy. Typically, landlords only cover the
outsides of structures and other public areas; therefore the renter is responsible
for everything inside of the home. Like homeowners insurance, renters insurance
can also cover liability accidents, in case something unfortunate were to ever
happen in a rented property. Renters insurance covers personal property in a
number of different coverage areas, including theft, smoke, snow, or even vandalism.
Most insurance companies that offer homeowners insurance offer the other types
as well. No matter what your specific living situation is, there is a current
insurance policy that will be able to fit your needs. The small New Jersey business
has developed a system with seven different policies that can fit almost anyone
ranging from an owner of a large home, to someone who may be renting a condominium
from another party. You could even own a condo, or renting a house. No matter
what, the new seven-policy system has made it possible for almost anyone to cover
their personal property, making tragedies a little bit easier to deal with.