Sublimit

11 months ago

Insurance Glossary Team

1 minute

Plain English Definition: A sublimit is a maximum payout for specific types of claims within a broader insurance policy limit.

What Sublimit really means for someone with an insurance policy

A sublimit restricts the maximum amount an insurer will pay for particular types of claims, even if the overall policy limit is higher. Policyholders need to understand these limits to avoid unexpected costs.

Sublimit Real World Examples

A health insurance policy with a $2,000 sublimit for mental health services within a $50,000 annual policy limit.
A homeowners policy with a $5,000 sublimit for jewelry theft, even if the total policy covers up to $100,000.
A travel insurance policy with a $1,000 sublimit for lost baggage reimbursement within a $10,000 total coverage limit.