Personal and Commercial Lines Coverage Applications
Personal lines
Homeowners covers the residence, other structures, personal property (with special limits on jewelry, cash, silverware, money, and business property at home), loss of use, liability, and medical payments. Business pursuits, home-based day care, and short-term rentals are limited or excluded; these are endorsement questions. Flood and earthquake are never included.
The personal auto policy has six parts: A - liability, B - medical payments, C - uninsured/underinsured motorists, D - collision, E - other than collision, F - towing and labor. Covered persons include the named insured, a resident spouse, resident relatives, and permissive users. A newly acquired auto gets broad coverage for 14 days (4 days for collision). Vehicles used for delivery or ride-hailing need endorsements, not the personal form. In Washington, UM/UIM and PIP must be offered, and a valid rejection must be in writing.
Commercial lines
A BOP fits small, low-hazard businesses (offices, retail, restaurants, apartments) and bundles property, general liability, and business income; it never includes workers' compensation or commercial auto. Larger or higher-hazard risks use a commercial package policy. Business income pays lost net income plus continuing expenses during the period of restoration; extra expense funds moving or renting to stay open. Inland marine covers property in transit or off premises; crime covers employee dishonesty; commercial auto uses symbols to define covered autos (any auto, scheduled, hired, non-owned).
Worked example
A fire shuts down a print shop for three months. The BOP pays lost net income plus continuing fixed costs for the period of restoration, and extra expense for temporary quarters. It pays nothing for the owner's separate delivery van, which requires commercial auto.