Sub-Limit
Definition:
A smaller coverage limit within the overall policy limit for certain items or perils.
Explanation:
Sub-limits apply to categories like jewelry, electronics, firearms, or mold. They cap payouts regardless of the total policy limit.
Example:
If your policy has a $1,500 sub-limit for jewelry and a $5,000 ring is stolen, you’ll only receive $1,500 unless it’s scheduled.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.