What does HO4 cover in terms of Loss of Use?

HO4, also known as Renters Insurance, is designed for individuals who are renting their living space. One of the key components of this policy is its coverage for Loss of Use, which includes additional living expenses incurred when the rented property becomes uninhabitable due to a covered peril, such as a fire or water damage.

When a rental unit is damaged and the tenant is unable to live there, HO4 provides compensation for reasonable increased living expenses that the renter has to pay to maintain their standard of living. This can include costs for temporary housing, such as hotel bills, and additional expenses for meals or other necessities, ensuring the tenant can continue their daily activities while their home is being repaired.

In contrast, the other options do not accurately reflect the specific coverage provided under HO4. Personal liability coverage typically pertains to damages or injury caused to others and is not included in Loss of Use. Lost rent is more relevant to landlords than to tenants, as tenants do not typically receive rent under renters insurance. Replacement costs for damaged items refer to coverage for personal property rather than living expenses and therefore do not reflect the purpose of Loss of Use. Thus, additional living expenses is the correct interpretation of what HO4 covers in this context.