policy limits

**Policy Limits**

Policy limits refer to the maximum amount an insurance company will pay for a covered loss under an insurance policy. These limits set a cap on the coverage provided and can apply to various types of insurance, including auto, home, health, and liability policies. Understanding policy limits is essential for ensuring adequate coverage and avoiding unexpected out-of-pocket expenses. When selecting a policy, it’s important to evaluate your needs and risks to choose appropriate limits that offer sufficient financial protection.