Personal lines insurance is an insurance policy that is offered to an individual this is different from a commercial lines business or a group business agreement or policy.
What are some common forms of personal lines insurance?
There are many different forms of personal lines insurance but some of the more common examples are:
Auto insurance – in this case the individual is insuring for the risk involved in driving a vehicle, this form of insurance can take many specific forms and ranges from comprehensive cover which is designed to cover the majority of eventualities that an individual may face to the more basic automobile liability insurance which in most states is the minimum level of insurance that is legally required in order to drive a vehicle. Automobile liability insurance coverage only applies to 3rd parties in terms of the claims payable.
Homeowners Insurance – this type of personal lines insurance is designed to cover a householder against liability for and damage to their personal property and place of residence. Like auto insurance there are many different variations of homeowners insurance and coverage may vary widely between two different policies.
Private Medical Insurance – this insurance is designed to cover medical eventualities for the insured party, levels of coverage may vary greatly between differing types of private medical insurance but may extend to long-term or short-term healthcare costs or coverage for disabilities and support with loss of earnings or recovery from these disabilities.
Personal Accident – this insurance is a little less common than other forms of personal lines insurance but is designed to cover the purchaser of the insurance policy against forms of personal injury (of an accidental nature) that are not covered by other forms of personal lines insurance – for example both auto insurance and homeowners insurance may include some form of personal accident coverage but the terms under which they may be claimed are limited. Usually this limit is to accidents occurred within a vehicle (auto insurance) or within the home and its grounds and outbuildings (homeowners insurance)
Travel Insurance – travel insurance can cover a range of risks to the traveler and act as a “top up” to other coverage that may not be valid in other countries or states. This form of personal lines insurance usually applies to medical care, lost baggage and loss or theft of money, personal property etc. when travelling.