Auto and home · Limits
A limit is the most the policy pays, not the size of the loss
An insurance limit is the maximum the contract will pay for a covered loss. The loss can be larger. Liability limits pay other people when you are legally responsible. Property limits pay to repair or replace your own covered property. A deductible is what you pay first on a property claim. It is not the limit, and it usually does not apply to liability the way it applies to a roof or a car.
On a home, Coverage A is the dwelling rebuild limit, not the sale price. Many HO-3 forms pay replacement cost on that dwelling only if it is insured to about 80 percent of rebuild cost. A sublimit is a smaller cap inside the big one. Water backup is an endorsement with its own sublimit, not the dwelling limit. Jewelry, off-premises contents, and debris removal often work the same way. Off-premises contents are often capped at 10 percent of Coverage C. That is common, not universal.
Per occurrence means each event. An aggregate, more common on a business general-liability policy, is the total for the policy period. Homeowners liability is usually per occurrence. An umbrella pays only after the underlying limit is used up. Carriers commonly want about 250/500 on the auto and about $300,000 of homeowners liability underneath. That is an underwriting rule, not a statute.
How much, as a question rather than a floor: how much car insurance and how much home insurance. Liability at a gathering: party liability. Liability versus collision and comprehensive: liability versus full coverage in Texas. Above the house and the car: umbrella. Uninsured motorist, a limit that pays you: uninsured motorist. Floors by state: auto liability requirements. Texas auto: car insurance in Texas. Colorado options: Colorado car insurance options. A cheap liability quote is still just the floor: Missouri liability coverage.
