What type of insurance coverage is specifically designed for home renters?

The type of insurance coverage specifically designed for home renters is referred to as HO4, which is commonly known as renter’s insurance. This policy provides coverage for a tenant's personal property against risks such as fire, theft, or damage from certain events. It also includes liability coverage, protecting renters against legal claims arising from injuries or damages to others that occur in their rented residence.

Renter’s insurance is crucial for those who do not own the property they live in, as it does not cover the building itself—that responsibility lies with the landlord's insurance policy. Instead, HO4 ensures that renters have financial protection for their belongings and potential liabilities, making it an essential safety net for individuals living in leased accommodations. This focus on personal property and liability, rather than structural coverage, distinguishes HO4 policies from homeowner’s policies such as HO3, HO5, and HO6, which cater to property owners and specific types of condominiums.