Sub-Limit
Definition
A coverage limit within a policy that is lower than the overall policy limit for specific types of property or losses. Sub-limits apply to categories like jewelry, electronics, cash, firearms, and business property kept at home. If your possessions in a sub-limited category exceed the sub-limit, you need a scheduled endorsement.
When This Matters
Your homeowners policy has a $1,500 sub-limit on jewelry. Your engagement ring is worth $8,000. Without a scheduled jewelry endorsement, only $1,500 is covered if it is stolen.
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