CANADIAN INSURANCE TERM
Sublimit
A lower limit that applies to a particular type of property, loss or expense within a broader insurance coverage limit.
Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
TermSublimit
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim
What does Sublimit mean?
A lower limit that applies to a particular type of property, loss or expense within a broader insurance coverage limit.
A policy's headline limit does not always apply equally to every category. Jewelry, collectibles, electronics or specific expenses can be subject to separate sublimits.
Sublimit in practice
A contents policy might have a broad total limit while applying a smaller sublimit to certain valuables unless extra coverage is arranged.