What is a limitation of coverage?

In Arizona, a limitation of coverage is a type of provisions that can be included in an insurance policy. This type of provision limits the specific risks and damages that are covered by the policy. Depending on the policy, this limit may be applicable to a certain amount of money or to certain specific incidents. For instance, a limitation of coverage may limit the amount of money an insured may receive for a certain property damage incident. This means that, even if the insured has paid for the full coverage of the policy, they may only receive a certain amount of money for the incident in question. Limitations of coverage also may limit the amount of time in which the insurance company can bring about a claim. For instance, in some cases, the insurance company may only have a certain amount of time to bring a claim for a certain incident. If the claim is not brought within the limited time frame, the insurance company may not be able to bring the claim against the insured. Limitations of coverage can be very important when it comes to understanding and managing risk. By understanding the limits of the policy, the insured can be sure to understand the risks that they may face. Additionally, if the insured has any questions or doubts about the coverage, they can ask their insurance company or an attorney to make sure that they are fully protected.

Related FAQs

What is a claim form?
What is required for an insurance company to act in good faith?
What is a subrogation recovery?
Can an insurance company deny a claim?
What is an insurance policy endorsement?
What is an opportunity to repair a claim?
How do I file an insurance claim?
What documents do I need to submit with an insurance claim?
What are my rights when making an insurance claim?
What is an insurer's duty of good faith?

What is a limitation of coverage?

Related FAQs

Related Blog Posts