How Much Will Renters Insurance Cover? 
An insurance policy covers up to the limits . If the policy provides for $ 100,000 of personal property coverage that merely establishes the maximum amount that the company will pay . If the loss is less they will adjust the claim based upon the value of the property lost . If the policy has replacement cost coverage the adjustment will be based upon the amount necessary to replace the damaged items . In the event of a law suit , the limit of the policy is the maximum amount that the company will pay to defend you and pay any judgment against you for bodily injury or property damage . 