Frederick Jace
Personal lines insurance is a type of coverage policy that is sold to a person only. It is different from commercial lines business or group business agreement or policy.
Which Are the Most Common Forms of Personal Lines Insurance?
You could find several forms of personal lines insurance. Read below to get familiar with the most common:
Car insurance
In this situation, the person who bought this type of personal lines insurance protects himself against the risk that carries to drive a vehicle. You can find car insurance in several forms and varieties that can go from comprehensive coverage to the most elementary form of liability coverage. Comprehensive coverage protects the insured against most of the possible situations a person could face after an accident. On the other hand, almost all states require that all drivers have, at least, some form of liability car insurance coverage to drive on public roads legally. Car liability insurance only covers claims from 3rd parties.
Homeowners insurance
This kind of personal lines insurance covers a homeowner from the legal responsibility that could derive from damages to his or her personal property and place of residence. Like happens with car insurance, you could find many forms of homeowners insurance, and coverage in a policy might extensively differ from the coverage in another policy.
Private medical insurance
This type of personal lines insurance covers medical contingencies for the policyholder. The level of coverage could widely differ from one private medical insurance policy to another. It might cover short-term to long-term healthcare charges, and it could give coverage for disabilities. Private medical insurance could also assist with loss of hearing or support for recovery from disabilities.
Personal accidents
This is a less usual form of personal lines insurance. You might not see it as often as the previously mentioned ones. It protects the insured against several types of personal injuries that are caused by accidents. Other types of personal lines insurance would not cover these injuries. Car insurance and homeowners insurance could both cover some kinds of personal accidents, for instance. However, the terms under which a claim could be made are limited. Typically, in the case of car insurance, the casualties are limited to those that occur inside a vehicle and with homeowners insurance, to accidents inside a house, the house grands, or outbuildings.
Travel insurance
This form of personal lines insurance protects the traveler against a variety of risks and could be a “fill-up” to coverage that might be invalid in other states or countries. Travel insurance typically applies to medical care, lost luggage, loss or theft of personal property, money, or any other personal belongings while the policyholder is traveling.
