Amount of insurance

What does it mean when the policy wordings refer to the amount of insurance? It is a pretty straight-forward answer. The amount that is shown on the paperwork (schedule of insurance) is the total dollars that will be paid out if there is a claim under that specific category.

Remember, that there are rarely absolutes in insurance. Examples of when there are additional amounts available for pay out would include such as by-laws coverage on a homeowner policy or legal costs for defense in a liability claim.

As always, Turners Tips advises you to take control of your insurance. Ask questions of your agent or broker and be sure you understand what you have and why you have it.