Understanding Sub-limits on your Insurance Policy

To untrained eyes, when you are in the process of planning out insurance coverages on your policy, it usually looks and sounds pretty comprehensive. Often enough we find that there can be some important areas of coverage that are listed as much less than what the policyholder was expecting. For example, let’s say you have a jewelry collection that includes a few personal pieces and some family heirlooms. You may assume all of your jewelry is covered under your insurance policy, but did you know that an average policy only covers up to a limit of $1,500?


We can assure you that this is one surprise no one wants to have immediately after a disaster strikes. Here is where sub-limits come in: how they impact your coverage and what you can do to maximize your settlement.

Now, you might be thinking, what is a sub-limit?

A sub-limit of an insurance policy is a limitation of liability to cover a specific type of loss. It places a maximum on the amount that can be paid out from a specific loss to the policyholder. These are a part of the overall limit that applies to the loss, rather than in addition to. So for example, let’s say that the jewelry collection we mentioned is worth a total of $20,000. If you have a sub-limit of $2,000 for jewelry in your policy, the maximum amount you can be paid will only be up to that $2,000 sub-limit.

That can be a big hit that you weren’t expecting.

These policy limitations can greatly restrict the amount of indemnity you receive overall from your insurance claim. In a claim, indemnity is the payment that the insurance company pays out to you, the policyholder, for a loss. It’s completely understandable for policyholders not to realize these sub-limits are a part of their policy coverages but it’s important to do your due diligence and make sure your coverages account for the worth of all your assets.

You can take some simple steps to prevent this from happening to you: thoroughly review of your insurance policy and get a second set of eyes to look into your assets, policy sub-limits, and overall coverages. Public adjusters are trained professionals who understand these policy limitations and can give you advice on what changes or additions to your policy you can make to ensure you are fully covered in the case of a disaster.

Remember, not all surprises in life are always welcomed. Give Brandon Lewis and our team at Strategic Claim Consultants a call at (844) 701-9995 today for a free consultation on your insurance policy or insurance claim. We’ve got you covered!

You can only receive what is in your policy. Get a FREE policy review BEFORE a catastrophy.