What type of policies are classified as personal lines?

Personal lines of insurance are designed to cover individuals and their personal needs rather than business or commercial interests. The correct response highlights several types of policies that fall under this category, specifically personal auto, homeowners, and dwelling fire policies.

• Personal auto insurance protects individuals against financial loss due to accidents involving their vehicles, providing liability coverage, collision coverage, and comprehensive coverage for personal vehicles.

• Homeowners insurance covers the risks associated with owning a home, including damage to the structure of the home, personal property within it, and liability for injuries that may occur on the property.

• Dwelling fire insurance provides coverage for properties that are not owner-occupied or do not require standard homeowners insurance, such as rental properties.

These policies cater directly to personal property and liability needs of individuals, distinguishing them from commercial policies that cover business-related risks, which are found in the other options. Understanding this classification is essential in distinguishing between personal and commercial lines of insurance.