Policy Limit

Plain English Definition: The maximum amount an insurance company will pay under a policy.

What Policy Limit really means for someone with an insurance policy

The policy limit caps how much your insurer pays for a claim or policy term.

Policy Limit Real World Examples

• Your auto policy has a $50,000 liability limit per accident.
• A life insurance policy with a $250,000 limit pays that amount upon the insured’s death.
• Your homeowners policy might have a $300,000 coverage limit for property damage.