Understanding Your Insurance Coverage Limits

Understanding the limits of your insurance coverage is an essential part of being properly protected. Insurance is designed to provide financial protection in the event of a loss, but it’s important to know what is and isn’t covered by your policy. By understanding your coverage limits, you can make sure you have the protection you need when you need it. Read on to learn more.


Understand Your Policy

A key factor in determining your coverage limits is the amount of insurance you have. Many policies have limits on the amount of coverage they provide, and it’s important to make sure that you have enough coverage to protect your assets. For example, if you have a commercial property policy with a $1 million limit, that means that the policy will pay out up to $1 million in the event of a loss. It’s important to note that if the damage from the loss exceeds $1 million, you will be responsible for paying the difference.

Policy Exclusions

Be aware of any policy exclusions. Insurance exclusions are specific events or circumstances that are not covered by your policy. For example, a standard property insurance policy may exclude coverage for flood damage, so it’s important to understand what type of natural disasters are covered by your policy.

Insurance Deductibles

In addition, it is also important to remember that insurance policies have deductibles. A deductible is an amount you are responsible for paying before your insurance coverage kicks in. For example, if you have a $1,000 deductible, you will have to pay the first $1,000 of any loss before your insurance policy covers the rest of the damage.


Understanding the limits of your insurance coverage is an important step in ensuring you have the protection you need. If you have any questions or concerns about your insurance coverage, call Leigh Agency to talk to an experienced independent agent.