Each insurance plan comes with limits, which are the maximum amounts the insurance company will pay a policyholder for each area of coverage, such as contents coverage (your stuff) and electronics protection. Proper limits ensure that you are neither ‘underinsured’ (and underprotected if something happens) nor ‘overinsured’ (and overpaying in premiums). Think Goldilocks…you should buy not too much, not too little, but just the right amount of insurance to cover what you own.

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