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What are deductibles and policy limits?

A deductible is the amount of a covered claim that is your responsibility. And a policy limit (or “limit of liability”) is the maximum amount your insurance company will pay for a covered claim.

Some homeowners opt for higher deductibles in favor of a lower premium. But if the unexpected happens, you need to make sure the amount you choose as a deductible is one you can afford to pay out of pocket.

Updated on September 16, 2022
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