Allied Lines

In the insurance industry, allied lines refer to coverages that are typically offered in conjunction with property insurance policies, complementing the core protections of the main policy. These lines provide additional safeguards against specific perils or exposures that might not be fully covered by the primary property insurance.

Here are some common examples of allied lines

• Earthquake Insurance: While most standard property insurance policies exclude coverage for damages caused by earthquakes, earthquake insurance can be purchased as an allied line to provide financial protection against such events.
• Flood Insurance: Similar to earthquake coverage, flood insurance is typically excluded from standard property policies. As an allied line, it offers protection against damages caused by floods, which can be crucial for properties located in flood-prone areas.
• Inland Marine Insurance: This allied line covers property that is transported over land or while temporarily stored at a location other than the insured’s primary premises. It can protect items such as computers, equipment, or personal belongings while in transit or off-site.

Example

A homeowner might purchase a standard property insurance policy to cover their house against fire, theft, and vandalism. However, if they live in an area prone to earthquakes, they would likely add earthquake insurance as an allied line to ensure they have comprehensive protection against potential earthquake damage.

Allied lines play a crucial role in customizing insurance coverage to meet specific needs and exposures. By supplementing the core protections of a primary policy, they offer policyholders greater peace of mind and financial security against a wider range of potential risks.