What is a multiline policy providing both property and liability insurance?

The correct answer is the homeowners policy, which effectively combines property and liability insurance into a single package. This type of insurance protects the policyholder's home and personal belongings against various risks such as theft, fire, and natural disasters while simultaneously providing liability coverage that defends against lawsuits for injuries or damages that may occur within the covered premises.

Homeowners policies are designed specifically for residential properties and cater to individuals, offering a convenient solution for those seeking comprehensive coverage for both their property and associated liabilities. This dual coverage allows homeowners to have peace of mind knowing they are safeguarded against a broad spectrum of risks that can affect their property and potential liabilities arising from ownership of that property.

In comparison, other choices may offer either property or liability coverage separately, or are tailored for different contexts. For example, a businessowners policy is designed for small businesses, encompassing property and liability coverage specific to commercial activities. A commercial package policy also provides flexible solutions but is geared towards larger business operations. The personal auto policy strictly covers vehicles and provides liability coverage related to driving but does not address property in the context of a residential structure.