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What do the limits of insurance mean?


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Wiki User
2004-11-19 18:34:59
2004-11-19 18:34:59

The limit is the maximum amount of $$ the company will pay for each component arising out of a claim.

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That usually means you have the state required liability limits and nothing more.

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This is a term used with respect to property insurance, such as homeowners policies. It refers to the maximum amount that the insurer will pay for the repair or rebuilding of the structure. The corollary is "contents limits" which refers to the maximum that the insurer will pay for the contents of the house or other structure. Sometimes, the contents limits have sub-limits such that only a stated amount will be paid for a stated category of items, such as electronics.

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Globe Life's insurance coverage limits depends on the type of policy you hold. Some life insurance, depending on the policy and person can cover upwards of $5 million!

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FDIC only insures bank deposits. Insurance company obligations are insured to certain limits by state insurance guarantee boards. If you contact your state insurance department, they can provide you with the limits of that state's coverage.

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Inheritance tax limits are basically limits of tax that the company has to pay from the inheritance of the dead. This would then regulate the inheritance rate from the life insurance.


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