Protect Your Home?
Personal insurance lines help protect individuals from potential losses they couldn’t afford to cover on their own and make it possible to handle the risks involved with driving a care and owning a home each of which could cause financial ruin if certain risks were actually realized. Personal lines insurance make up about half of the overall insurance market.
Personal lines include products such as:
- homeowners insurance
- flood insurance
- earthquake insurance
- renters insurance
- automobile insurance
- RV or boat
- life insurance
- disability insurance
- umbrella insurance
- health insurance.
These products protect individuals and families against potentially significant financial losses caused by fire, theft, natural disasters, death, accidents, lawsuits and illness.
Some types of personal insurance are required by law, such as automobile liability insurance and,health insurance under the Affordable Care Act. Other insurance, such as comprehensive and collision automobile insurance and homeowners insurance, can be required by lenders when property is used as loan collateral.
Generally the amount of insurance coverage an individual will purchase depends on how much they are willing to pay in premiums. Of course higher premiums provide more coverage. However, individuals may be unable to purchase a policy for a particular risk if they pose too great of a risk to the insurance company. For example, someone with a history of cancer might not be able to purchase life insurance. In other cases, high-risk individuals can still purchase insurance, but will have to pay above-average premiums to compensate the insurer for the extra risk. An example is high-risk auto insurance for drivers who have been at fault in multiple accidents over a short time.
Personal lines won’t cover every risk an individual might face, but they can dramatically reduce the dollar amount of potential losses. Individuals can usually tailor each policy’s coverage and deductibles to strike the right balance between the amount of coverage and the cost of premiums. A good insurance agent can review the potential risks an individual faces and recommend appropriate coverage.