Personal lines insurance is a broad category of insurance that covers individuals from death, injury, or loss of property.
Malhotra & Assoc. Insurance has a team of insurance experts ready to find you the loss protection you need to keep your financial interests secure. Contact us today for all of your personal coverage needs.
Explaining Personal Lines Insurance
Personal lines insurance is coverage that individuals purchase to cover against loss resulting from death, injury, or loss of property.
As opposed to commercial lines of insurance, personal lines are for the individual. They are the type of policy an individual can seek out and purchase to protect their financial interests.
Some people may have more difficulty purchasing personal lines insurance. Health insurance may be less accessible to someone who has a chronic condition or has a history of cancer, stroke, or heart disease. Life insurance may be prohibitively expensive for someone who is aging or in poor health.
What Coverage Does Personal Lines Insurance Include?
Personal lines insurance includes coverage for home, auto, life, health, disability, property, and coverage against specific risks such as cyber, flood, earthquake, and more.
Protection Against Liability
Personal lines insurance covers your risks. When you interact with the world, you take risks. When your property or profession are involved, it makes good financial sense to protect against the potential damage caused by these risks, called liabilities. You face liability when you can be held responsible for damages in court.
Homeowners insurance can protect you if someone gets injured on your property. Liability insurance for your vehicle protects you if you cause bodily injury or property damage. In each case, your insurance company will pay up to a set amount toward these damages.
Coverage for Losses
Personal lines insurance protects your financial interests by providing a set amount of coverage against covered events. That means if your homeowners insurance says you are covered in case of fire and your house burns down, your insurance company will cover the cost to replace your home. Without that insurance, you would be out of your investment and would have to pay for repairs or replacements yourself.
Sometimes as a result of an accident, vehicles are totaled. That means the damage would cost more to repair than the car is worth, resulting in an effective loss of the vehicle. Your car insurance, a type of personal lines insurance, will pay you the fair market value for your vehicle, which can help you afford a new vehicle.
Life insurance provides coverage in the form of payment to your beneficiaries after your death. This loss coverage gives your family financial stability to recover from your lost wages or take care of your medical debts and funeral costs.
Having coverage from a personal line of insurance, such as car insurance, allows you to take risks and make investments in property without the worry of losing all of your assets. If you had to pay to rebuild or repair damages or pay for the bodily injury or property damage of others caused by that investment without coverage from a form of personal lines insurance, you would have to liquify your assets and could be in deep financial trouble.
If you’re interested in learning more about personal lines insurance, reach out to our team of experts today!