What is a statutory limit in an insurance policy?

A statutory limit in an insurance policy is the maximum amount of money that the policy can pay out for a specific type of claim. In Florida, the statutory limits are set by state law and must be followed by insurance companies and policyholders. For example, an insurance policy may have a statutory limit of $50,000 for any one accident or injury. This means that if a policyholder files a claim for more than $50,000, the insurance company will only pay out that amount. While these limits are set by law, some insurance companies may offer higher limits to policyholders. It is important for policyholders to understand the statutory limits for their insurance policy and to consider what their policy offers when deciding how much coverage they need. If a policyholder does not have enough coverage to cover their losses in the event of a claim, they may end up having to pay out-of-pocket for any additional costs. It’s always best to speak with an insurance representative and ask any questions about the coverage limits in order to make sure that the policyholder has the protection they need.

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What is a statutory limit in an insurance policy?

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