Insurance limits are the maximum amount that your provider may pay out for claims in accordance with your policy. Most policies involve home and auto insurance with specified coverage limits, as explained by our agents here at AFI Insurance in Denver, CO.
Explaining Car insurance Limits
Auto insurance policies range in coverage limits depending on your policy type. It is possible to opt for higher liability limits to offer greater protection for your assets and any costs due to damages to another person’s property or an injury you’re found liable for. Typical liability coverage is $30,000 for property damage, $50,000 for bodily injuries per person, and $100,000 for bodily injuries per accident. You can choose a more comprehensive policy with extra coverage amounts.
Home Insurance Policy Limits
There are various components to home insurance policies, including the following:
Dwelling Limits
If you owe a mortgage on your home, financial lending companies will require you to have dwelling coverage in an amount that will cover the cost of rebuilding the home should it be severely damaged. The amount will depend on the replacement costs, which are determined by the age, size, and other features of the dwelling.
Personal Property Limits
The limits on personal property are generally 50% of your dwelling limits, but they can often be increased or decreased depending on your needs. If you want certain valuables covered up to full replacement costs, consider adding a rider or endorsement to insure them in addition to your primary policy.
Loss of Use and Personal Liability Limits
Insurance companies vary in how they set coverage limitations for loss of use for living expenses beyond your normal costs incurred when your house is being rebuilt or replaced due to covered losses. Some policies provide compensation for hotels, other lodgings, and meals for a set period. Owners with personal liability coverage if a household member is responsible for injury to other persons or their property.
Be Sure to Understand Your Policy’s Term Limits
Be sure to fully understand your policy to be prepared for certain home and auto incidents. For more information, feel free to contact us at AFI Insurance in Denver, CO.
