Personal Lines Insurance includes all insurance policies designed to cover personal assets. These policies are marketed and sold to individuals rather than groups or businesses. Typical insurance policies included under the Personal Lines Insurance classification include automobile insurance, homeowner’s, renter’s insurance (for people that do not own their home yet need coverage for their contents and personal liability) and insurance for dwellings owned by one person and rented to another.
Homeowner’s, Renter’s Insurance and Owners of Dwellings Rented to Others are designed to cover, what will be for many, their greatest asset and largest financial investment. It is important to conduct due diligence with comprehensive research of the current insurance marketplace prior to purchasing a policy for these assets. When searching for homeowner’s insurance (et al.) make sure that whatever policy you choose meets all of your specific coverage needs. The cost of these policies can depend on various factors such as your home’s location, local fire protection requirements or exclusions, the age and construction of the building, your choice of deductibles, and the amount and scope of coverage desired.
A Homeowners policy is divided into two sections (section 1, A through D and section 2, E through F); section One provides Property coverage and section Two provides Personal Liability coverage. Section One will include, but not be limited to:
1. Coverage A, Dwelling: your home and any attached structure that may be damaged by covered perils.
2. Coverage B, Other structures: This will insure any other structures not attached to the primary home, yet at the same location (such as a detached garage, a storage shed, a guest house, etc.).
3. Coverage C, Personal Property: This section offers protection for the contents of your home and other personal belongings for anyone residing in the home. Your personal property is almost always covered (up to a limit provided for automatically in the policy) even when it is not in your home, for example, when you are on vacation, or a business trip.
4. Coverage D, Loss of use: This coverage may help cover expenses accrued if your home becomes unlivable for a period of time. Things like temporary housing or hotel fees may be covered.
5. Coverage E, Personal Liabilities: Will cover you or any resident of your home, who may be responsible for bodily injury or property damage to a non-resident person.
6. Coverage F, Medical payments to others: Covers reasonable medical expenses for any person who may have been injured on your property and who is not a resident of your home
State law mandates that individuals purchase certain types of Personal Lines Insurance. Auto Liability insurance is one of these. This coverage is designed to protect and cover certain types of financial losses or obligations resulting from the use or ownership of an automobile. Under Financial Responsibility Laws, the state of California requires all vehicle owners to carry at a minimum, auto liability insurance. The statutory minimums as mandated are:
Bodily Injury Liability – Payments to Others
1. $15,000 for death or injury of any person, any one accident.
2. $30,00 for all persons in any one accident
Property Damage Liability – Payments to Others
1. $5,000 for damage to the property of another person
There are many options and costs associated with auto insurance. The amount of financial security you desire should dictate how much coverage you should obtain. Oftentimes when a vehicle is leased, the person leasing the vehicle is required by the lessor to carry much higher limits of liability than they may otherwise desire to carry. Not having insurance on your vehicle is illegal and if you are stopped while driving or involved in an accident while uninsured, you could lose your license and your vehicle may be impounded. Be sure to carry current proof of insurance in your vehicle at all times.