Personal Lines Insurance
Definition - What does Personal Lines Insurance mean?
Personal lines insurance refers to the class of coverage that protects families or individuals against financial losses. The term “line” in the insurance industry, refers to a class of insurance. The focus of personal lines is on protecting the financial interests of an individual or family, rather than a corporate or business entity.
There are many different types of protection offered within personal lines. These types of insurance products lower the personal financial risk, if an insurable event of loss occurs. The high-cost associated with just one catastrophic event could place individuals in serious financial hardship or debt. Whether it’s something as common as a car accident or something less likely, like a flood or tornado, the unexpected costs can accumulate quickly.
Insuranceopedia explains Personal Lines Insurance
Examples of personal lines insurance include homeowner's insurance, health insurance, automobile insurance, renter's insurance, disability insurance, tornado insurance, umbrella insurance and other types of property and casualty insurance. Some insurance, such as car and health insurance, is mandated by law while other types like home or condo insurance can be a condition of financing or purchasing a property. However, beyond these minimums required by law or financial commitments, each individual is allowed to choose how much personal lines insurance to obtain for their individual circumstances.
Personal lines protect people and families from complete financial devastation in the event of unforeseeable accidents however, they do not cover every situation that causes financial loss.