Reaching the limit on a home insurance policy means that the policyholder has reached the maximum amount of coverage that the policy will pay out. Once the limit is reached, the policyholder is no longer allowed to file additional claims on that policy in Easton, PA. Continue reading to learn more from Northeast Insurance Advisors LLC about what happens when you reach the limit on your insurance policy and how umbrella coverage can help.
How can a home insurance policy be exhausted?
Home insurance coverage limits are the maximum amount an insurance company will pay for damages to your home or possessions. Your policy limit is determined by the amount of coverage you purchase. For example, if you have a 50% coverage policy with a $100,000 policy limit and your home is damaged by a fire that costs $50,000 to repair, the insurance company will pay $50,000. You will be responsible for the remaining $50,000. In some cases, you may be able to purchase additional coverage to protect yourself from situations in which you could reach your policy limit.
What happens if I still have outstanding expenses when my insurance is exhausted?
After the max amount is exhausted on your policy, you will be responsible for paying the outstanding expenses by yourself. Extra coverage, such as an umbrella policy, can help cover what your central policy does not.
How does umbrella insurance help?
An umbrella insurance policy is an insurance policy that provides additional coverage beyond the limits of the main home insurance policy. This additional coverage can help when the primary policy reaches its limit, and the homeowner is still responsible for damages.
Northeast Insurance Advisors LLC in Easton, PA offers umbrella insurance to protect you from unexpected costs. Reach out to us today to learn more!