What Should You Know About Personal Lines Insurance?

Posted on: 7 August 2015

Personal lines insurance encompasses a variety of insurance policies meant for individuals and families only, as opposed to businesses. While some individuals are small business owners and need to get business lines insurance, the majority of people choose from personal lines policies. Here are some things to know about these types of insurance policies.

Types of Personal Lines Policies

There are many different types of insurance policies specifically meant for individuals and families. Personal lines insurance policies include renter's and homeowner's insurance policies, health insurance, disability insurance, and life insurance. It also includes umbrella policies, which provide additional coverage to fill in the gap between what the policy holder's other policy covers and what they owe in damages. Auto insurance is also considered a personal lines policy as long as the vehicle is only used for personal use. There are also personal lines policies to cover earthquakes, fire, flood and lawsuits.

Required Insurance Policies

While many personal lines policies are optional, some of them are required by law. One such policy is auto insurance, which is required in all 50 states. The only difference between each state is how much coverage the driver must have. For example, in California, the requirement for liability coverage is considerably lower than in Texas.

Health insurance is also a requirement under the Affordable Care Act. People who do not have health insurance coverage pay a penalty the following year when filing their taxes.

Business Insurance for Home-Based Businesses

There are some instances where you think you need personal lines insurance, but what you actually need is business insurance. One instance is if you use your personal vehicle for business errands. When you start using your own vehicle to make a deposit at the bank, pick up lunch for work functions, or travel for a meeting across town, it becomes necessary to have commercial auto insurance.

If you have a business at home, talk to your personal lines insurance broker about the homeowner's insurance policy. It might not cover damages or loss to equipment used for your business. In this case, you will need a business property policy in addition to the homeowner's policy.

Policies for Recreational Vehicles

Personal lines insurance policies are also available for recreational vehicles, such as ATVs, snowmobiles, jet skis, and boats. This is a type of policy many people are unaware is available. These policies help protect you from theft or damages to the vehicle, whether from an accident or collision with other boats or recreational vehicles. The policy might even be required if you purchased the vehicle with a loan.

For more information about different kinds of insurance, contact a company such as NFP, P & C, Inc.