Allied Lines

What Does Allied Lines Mean?

Allied lines insurance is a type of coverage often purchased alongside a standard fire insurance policy. It provides protection for various risks, including demolition charges, accounts receivable, data processing equipment, malicious damage, water damage, increased construction costs, vandalism, and other specific perils. When combined with a fire insurance policy, allied lines insurance can be highly advantageous for property owners.

Because the perils that allied lines covers often sit outside what a basic policy will pay for, property owners usually buy it after checking what their main policy already handles, like whether their homeowners insurance covers fire damage on its own.

Insuranceopedia Explains Allied Lines

The reason property owners commonly purchase allied lines insurance is that there are many types of losses that can occur beyond fire damage or personal injury on a property. However, many homeowners’ and fire insurance policies do not cover these risks. For example, vandalism is often excluded from many homeowners’ policies. Therefore, in areas with a high risk of vandalism, allied lines insurance can be a valuable addition.

Water damage is another good example. Some policies pay for sudden leaks but exclude gradual seepage, so it helps to know what homeowners insurance covers for water damage before deciding whether allied lines makes sense. Comparing top homeowners insurance providers can also tell you which carriers already bundle some of these perils into their standard policy, which changes the math on whether you need allied lines at all.