What is an example of an allied line?

Allied lines are forms of insurance that provide coverage that is closely associated with the primary coverage offered under property insurance policies. Earthquake insurance is an excellent example of an allied line because it supplements standard property coverage by protecting against specific risks that are often excluded from typical homeowners or commercial policies.

The purpose of allied lines is to address particular perils or exposures that homeowners or business owners might face, which are not fully covered under their principal insurance policies. For instance, while homeowners insurance generally covers a wide range of risks, it typically excludes damage caused by natural disasters like earthquakes. Therefore, purchasing earthquake insurance as an allied line adds an essential layer of protection against this specific risk, ensuring comprehensive coverage for property owners.

In contrast, the other options represent insurance products that do not fall under the category of allied lines. Health insurance primarily covers medical expenses, named-peril insurance indicates a type of property insurance that only covers specifically listed perils, and vehicle liability insurance relates to coverage for vehicles rather than property perils. Thus, earthquake insurance aligns perfectly with the concept of allied lines by providing targeted protection complementary to general property insurance.