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Understanding Policy Limits

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Auto Insurance Policy

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Typically includes liability coverage limits per person, per accident for bodily injury, and property damage.

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Homeowners Insurance Policy

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Coverage usually has a maximum limit based on the dwelling's insured value, personal property, and liability.

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Health Insurance Policy

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Includes out-of-pocket maximums and sometimes has lifetime or annual limits for specific services or treatments.

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Life Insurance Policy

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Limit is the death benefit amount that the beneficiaries will receive upon the policyholder's death.

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Disability Insurance Policy

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Provides a percentage of the insured's income up to a specified limit if they are unable to work due to disability.

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Umbrella Insurance Policy

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Provides extra liability coverage that goes above and beyond the normal limits of auto or homeowners policies.

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Renters Insurance Policy

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Covers the tenant's personal property up to a certain limit and may include liability coverage.

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Professional Liability Insurance Policy

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Also known as errors and omissions insurance, it covers claims of professional negligence or failure to perform professional duties.

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Product Liability Insurance Policy

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Covers claims arising from harm caused by a company's products, with specific limits per occurrence and aggregate limits.

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Commercial Property Insurance Policy

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Protects a business's physical assets from fire, explosions, burst pipes, storms, theft, and vandalism.

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