What type of insurance covers both personal real estate and legal liabilities for individuals and families?

The correct answer is B, personal lines. This type of insurance encompasses policies designed specifically for individuals and families. Personal lines insurance typically includes coverage for personal real estate, such as homeowners insurance, which protects against losses to the structure and personal property within, as well as providing liability coverage for accidents that might occur on the property or due to the policyholder's actions.

This type of insurance contrasts with commercial lines, which are tailored for businesses and organizations, addressing their unique risks and liabilities. Inland marine insurance primarily covers property in transit or certain types of specialized property, but does not extend to general personal liabilities. Bonding and crime insurance focuses on protecting businesses against losses due to theft or fraud, rather than the personal real estate and liabilities associated with individual homeowners. Thus, personal lines effectively meet the needs of families and individuals by providing comprehensive coverage for their personal assets and associated risks.