The maximum limit of coverage that an insurance company will cover depends on the type of policy you have. Generally, insurance plans have what is called a “policy limit” which is the maximum amount of coverage the insurance company will provide.
The specific policy limit of an insurance policy depends on the type of coverage and the amount of coverage purchased. For example, if you have auto insurance, the policy limit might be determined by the dollar amount of liability coverage you purchased. On the other hand, if you have health insurance, the policy limit could be determined by the type of plan you have (e.g., HMO, PPO, or Catastrophic) and the amount of coverage you purchased.
It’s important to note that many insurance policies also have sub-limits that are lower than the policy limits. For example, your auto insurance policy might have a $50,000 policy limit for liability coverage, but the policy might have a sub-limit for property damage of $25,000.
To see what type of coverage and what the policy limits are for your specific insurance policy, you should check your policy documents. If you have any questions about your policy, you should contact your insurance company.
