Which type of policy is recommended for individuals renting a home?

The recommended policy for individuals renting a home is the H.O. 4 Broad Form Tenants policy. This type of insurance is specifically designed for renters, providing coverage for personal property against various risks, such as theft, fire, and certain types of water damage. Unlike homeowners insurance, which covers both the dwelling and the owner's personal property, a renters policy focuses solely on the tenant's belongings, recognizing that renters do not possess the structure they live in.

This policy also typically includes liability coverage, offering protection in case someone is injured in the rented property and the tenant is found responsible. The strength of the H.O. 4 policy lies in its tailored approach for tenants, ensuring they have the necessary coverage for their specific living situations.

In contrast, policies like the H.O. 3 Special Form are designed for homeowners and provide comprehensive coverage of the structure itself as well as the owner's personal property. The H.O. 5 Comprehensive Form is also more suited to homeowners, as it offers broader coverage, while the H.O. 8 Modified Form is used in certain situations for older homes. Therefore, the H.O. 4 is the most appropriate choice for individuals renting a home, as it specifically addresses their needs.