Guide 01
Understanding Coverage Limits
Coverage limits define the maximum amount an insurer will pay for a covered loss. In your matrix, limits appear as a row that must be matched across every policy column for a fair comparison.
- Liability limits are often split into per-person and per-accident amounts
- Property limits should reflect replacement cost, not market value
- Sub-limits may cap specific categories like jewelry or electronics
- Umbrella policies extend limits above base auto and home coverage