You may already know all of the important details of your insurance policy, but have you considered that there might be sub-limits that you missed in the fine print? You may know you have X amount of dollars for your policy limit, but are you aware that amount of coverage may not be available to you when you have a claim? Many policyholders in Florida don’t realize that their coverage is more restricted than they thought, leaving them with extra out-of-pocket expenses that they don’t see coming until it’s too late. This guide will prepare you for your next property insurance claim by familiarizing you with your policy’s sub-limits and it should spur thoughts to review your current policy NOW, before you have a claim, to discuss with your agent any shortfalls of dollars that could be coming your way.

Get to know your insurance policy on a deeper level when you meet with Altieri Insurance Consultants Orlando for a policy review!

What Is a Policy Sub-Limit?

Your insurance policy has coverage limits, and those coverage limits can be split into separate, smaller limits for each type of expense or situation. This is what’s known as a sub-limit.

One of the most common sublimit is related to water damage and it is buried in policies. Imagine you have a pipe break in your house. Water can migrate everywhere very quickly.  Your policy structure limits might be $200,000, and your personal property limit is $100,000.  But you are told that your sublimit for water damage is $10,000. This means you will only receive $10,000 to pay for water extraction, tear out, rebuilding, and replacement, even if the work to restore everything is tens of thousands more.

This is why it’s crucial to gain an understanding of what your policy covers at your renewal.  People rely on their agent, but many times the agent is just turning over coverage from last year and these types of coverage shortages can get overlooked. Read our guide on how to document damage (before the adjuster arrives) for a better chance at fair coverage for your personal property in Orlando.

The Main Types of Sub-Limits In Property Insurance

There are three types of sub-limits that you might encounter in Orlando:

Category limits are dependent on the type of item that was damaged. For instance, electronics may have a different sub-limit than art pieces or collectible items.

Peril-specific sub-limits are determined by the source of the damage. In this case, damage caused by water may have a different coverage limit than damage caused by a fire.

Sub-limits for structures detached from the main property are often calculated at a different percentage rate or flat coverage amount.

What Should I Do If My Insurance Policy Has Sub-Limits?

1. Know exactly what your sub-limits are ahead of time and prepare accordingly. Get a policy review from a trusted Altieri public adjuster in Orlando.

This chart offers an example of what sub-limits could look like for Orlando property owners:

Schedule a policy review with Altieri Insurance Consultants, and we’ll help you find out exactly what your sub-limits are!

2. Get additional coverage to take care of any gaps left behind by your sub-limits. This is a good idea if you have many high-value items and belongings.

3. Review and adjust your insurance policy on a yearly basis. Personal needs and rising expenses can fluctuate greatly in just a few months.

Get to Know Your Insurance Policy Better. Meet With Your Reputable Public Adjusters at Altieri Insurance Consultants Orlando!

Reputable public adjusters near you are ready to help you better understand your coverage limits and sub-limits. Call Altieri Insurance Consultants Orlando today at (813) 247-4757 for policy reviews, pre-loss plans, and claims handling from trusted insurance experts in Florida.