What is a statutory limit in an insurance policy?

A statutory limit in an insurance policy is a limit set by the North Carolina state law that determines how much money an insurance company must pay out for an insurance claim. This limit is based on the type of insurance policy and the coverage amount. The state of North Carolina requires insurance companies to provide certain statutory minimums for certain types of coverage, such as liability. Liability coverage is important because it provides financial protection if you are responsible for causing an accident that causes injury or property damage. The statutory minimum liability coverage for North Carolina is $25,000 per person and $50,000 per accident. Unfortunately, North Carolina does not have a universal statutory limit for all types of coverage, which means that the statutory limit on an insurance policy can vary widely depending on the type of coverage. For example, the statutory limit for fire insurance may be much different than the limit for auto insurance. It is important to read your policy carefully so that you know exactly what is covered under the policy and the amount of protection that you are receiving. Insurance companies in North Carolina may also provide additional coverage options for an additional charge, and these additional coverage options may have higher statutory limits. It is important to speak with your insurance company to discuss your coverage options. In conclusion, a statutory limit in an insurance policy is a limit set by the North Carolina state law that determines how much money an insurance company must pay out for an insurance claim. This limit is based on the type of insurance policy and the coverage amount and can vary depending on the type of coverage. It is important to read your policy carefully and discuss any additional coverage options with your insurance company.

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