What does Loss Limit mean? Read on to discover the definition & meaning of the term Loss Limit - to help you better understand the language used in insurance policies.
A property insurance limit that is less than the total property values at risk but high enough to cover the total property values actually exposed to damage in a single loss occurrence. This approach is usually used when the insurer is unable to provide a limit equal to the total property values at risk or when reinsurance costs for a full blanket limit are prohibitive.
We hope the you have a better understanding of the meaning of Loss Limit.