What is a policy limit?

A policy limit is the maximum amount of money that an insurance company will pay out to a policyholder during the duration of their insurance coverage. In the event that an insurance claim is made, the policy limit dictates the maximum amount of money the insurance company will pay out to the policyholder. In the state of Washington, the policy limit is typically determined when the policyholder purchases the insurance policy. It is important to note that the policy limit does not guarantee that the policyholder will receive the entire amount, and the amount paid out may be less depending on the amount of damage that has been done to the policyholder’s property. Additionally, the insurance company might also impose deductibles before paying out the policy limit.

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What is a policy limit?

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