What is a limitation of coverage?

A limitation of coverage is a clause in an insurance policy that limits the amount of coverage a person is entitled to. This means that if a claim is greater than the limit listed in the policy, the insurance company may deny the claim or only pay a limited amount. This is often seen in the case of property damage, where the policy may only cover a certain amount of damage. In Washington, these limitations of coverage can vary depending on the type of insurance policy and the specific insurer, so it’s important to carefully read the fine print of any insurance policy before signing. Additionally, there may be other limitations listed in the policy such as restrictions on the types of claims that are covered or the types of claims that are excluded. Understanding these limitations is important so that consumers can make sure they are adequately covered in the case of a claim.

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