North Carolina Adjuster Practice Exam 2026 – Complete Study Resource

The HO-4 policy, commonly known as tenant's insurance or renter's insurance, is specifically designed for individuals who rent their living space. This policy provides coverage for personal property against risks such as theft, fire, and vandalism, addressing the unique needs of renters who do not own the physical structure of the dwelling. It typically includes liability protection as well, which covers incidents that may occur within the rented premises.

In contrast, the HO-1 is a basic homeowners policy that covers the dwelling and certain types of personal property but is not suited for renters since it pertains to homeowners who own their property. The HO-3 policy is a more comprehensive homeowners policy for those who own their homes, offering a broader range of protections for both the structure and personal belongings. The HO-6 policy is designed for condo owners, providing coverage for certain elements of the condo unit and personal property, which does not apply to renters either. Therefore, the HO-4 is the most appropriate option for those who do not own their home but require insurance for their belongings and liability.