What is a liability limit?

A liability limit is the maximum amount of money an insurance company is responsible for paying out to an insured individual in the case of an insurance claim. In Florida, liability limits are set in accordance with the insurance contract and the laws of the state. A liability limit is a cap on the total amount of money an insurance company will pay out for a single claim. For example, if an individual has a homeowners insurance policy with a liability limit of $250,000, the insurance company would only be responsible for paying out up to $250,000 if the insured individual files an insurance claim relating to their home. Liability limits are important for both insured individuals and insurance companies because they provide a degree of protection to both parties for any potential losses or damages that may occur.

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