What is the primary function of an HO-4 policy?

The primary function of an HO-4 policy is to provide coverage for renters. This type of policy is designed specifically for individuals who do not own the property they reside in, offering protection for personal belongings against risks such as theft, fire, or liability for injuries occurring in their rented space. Unlike homeowners insurance, which covers the structure itself, an HO-4 policy focuses on the tenants' personal possessions and any liability protection connected to their rental situation. By understanding this distinction, it's clear that the HO-4 is tailored to meet the needs of renters, ensuring they have the necessary financial protection for their personal assets.