Frequently Asked Questions

What are Policy Limits?

Policies specify the most that will be paid for any one claim, the "individual limit," and the most that will be paid in any policy year for all claims, the "aggregate limit." For example a policy with limits of $1,000,000/$3,000,000 will provide a maximum of $1M per claim and $3M for all claims during a policy term. The limits that are needed should be discussed with the insurer or your representative. In some states, insureds carry limits are low as $100,000/$300,000. The limits generally taken across the country are $1,000,000/$3,000,000.

As with any overview, this insurance information is general and intended to help you make informed decisions. The actual policies available in your state may contain features not discussed above. An insurance policy is a contract between you and an insurance company. You should read and understand any policy that you purchase. If you have any questions, have the company or insurance broker or agent take as much time as you need to explain policy terms to your satisfaction.

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