Policy Terms
Policy Limit
Definition
The maximum amount an insurance company will pay under a policy for a covered loss. Limits can be per-occurrence, per-person, aggregate (total for the policy period), or a combination.
In Zach’s Words
“Your policy limit is the ceiling on what insurance will pay. If you have a $300K dwelling limit and your house costs $400K to rebuild, you're $100K short. That's why getting the right limits is so important — saving $50 a year on premium doesn't help when you're underinsured by six figures.”
— Zach Nadler, CIO