What does the HO-4 policy cover?

The HO-4 policy, commonly known as renter's insurance, provides coverage specifically for individuals who are renting rooms, apartments, or houses. This policy is designed for tenants who do not own the physical structure they live in but still want protection for their personal belongings against risks such as theft, fire, or other types of damage.

By contrast, other options would relate to different types of homeowners' insurance policies. For example, direct damage to private homes pertains to homeowners' insurance for those who own their properties, while coverage for personal property in condominiums fits under a different policy type aimed at condo owners. Protection for individuals over 65 is more related to health insurance or other specialized insurance products rather than a specific dwelling policy like the HO-4. Thus, the emphasis of the HO-4 on protecting the renter's personal property is what makes it the correct answer.