What type of insurance protects an individual's personal and real property?

• A. Commercial Insurance
• B. Personal Lines Insurance
• C. Liability Insurance
• D. Property Insurance

Answer: (B)

The correct answer is personal lines insurance because it specifically refers to insurance coverage that protects individuals and their personal property. This type of insurance covers risks associated with personal assets like homes, automobiles, and other personal possessions. Personal lines insurance is designed for individuals and families, providing a safety net against various risks that could result in financial loss.

Personal lines typically include homeowners insurance, renters insurance, and personal auto insurance, offering coverage for both real property (such as a house or apartment) and personal property (like furniture, electronics, and personal belongings). This category is tailored to meet the needs of individual consumers, distinguishing it from other types of insurance that may focus on business or commercial risks.

In contrast, commercial insurance focuses on coverage for businesses and their associated risks, which would not apply to personal property and assets. Liability insurance generally provides protection against claims resulting from injuries or damage to others, without specifically covering the insured's personal or real property. Property insurance is a broader category that includes both personal and commercial property coverage, but personal lines insurance specifically addresses the needs of individual consumers. Thus, while property insurance is closely related, personal lines insurance is the more precise answer in the context of protecting an individual's personal and real property.