What type of losses does Terry's Homeowners 4 policy cover?

The Homeowners 4 policy, also known as the Tenant's policy, primarily covers personal property within a rented unit. This policy is designed for individuals who are renting and does not provide coverage for the physical structure itself, as that is the responsibility of the property owner. The Homeowners 4 policy typically covers personal belongings, liability for personal injuries, and additional living expenses in case the rental property becomes uninhabitable.

In this context, option B is correct because it focuses specifically on what the policy is intended to protect—personal items belonging to the tenant. The other options relate to aspects that fall outside the scope of the coverage offered by a Homeowners 4 policy; they pertain either to the structure itself, which is not covered under this tenant-focused policy, or to other liability aspects that are not specified in this type of coverage.