What happens if my loss exceeds the policy limit?

You bear the cost above the limit yourself. This is called being 'exposed above the limit'. For large losses — major liability claims, catastrophic property damage — the gap between a policy limit and the actual loss can be very significant. If you have liability exposure above your standard policy limit, an umbrella or excess liability policy can extend cover above it. See our liability and umbrella insurance overview.

Why is my jewellery claim lower than my contents policy limit?

Most contents policies include a sub-limit for 'valuables' or 'single articles' — typically £1,000–£2,500 per item — regardless of the overall policy limit. An item worth £5,000 is only paid up to the sub-limit unless it was specifically scheduled (named and valued) on the policy. Always check sub-limits for high-value items and schedule them individually if needed.

What is the difference between a per-occurrence limit and an aggregate limit?

A per-occurrence limit caps what the insurer pays for any single incident. An aggregate limit caps the total paid across all claims within the policy period (usually one year). Once the aggregate is exhausted, no further claims are paid — even if individual claims are within the per-occurrence limit. This distinction is particularly important in liability and professional indemnity policies.

How do I know what sub-limits apply to my policy?

Sub-limits appear in the policy schedule (the declarations page) and in the insuring agreement. They may be listed separately under a 'schedule of benefits' or 'summary of cover'. Reading the five parts of every policy shows exactly where to look for limits in a standard policy document.

Basics Intermediate 7 min read Updated 2026-10-16

Understanding Policy Limits, Sub-Limits and Aggregate Caps

Insurance limits set the maximum your insurer will pay — but a single policy can contain several different types of limit working together. This guide explains per-occurrence limits, aggregate limits, sub-limits, and how gaps in coverage appear.

The four types of limit

Per-occurrence limit

The maximum paid for any single claim or incident. If a claim exceeds this, you bear the excess above the limit personally.

Example: £500,000 per liability claim.

Aggregate limit

The total the insurer will pay across all claims in the policy period. Once exhausted, no further claims are covered until renewal.

Example: £1,000,000 aggregate across all claims in the year.

Sub-limit

A lower limit applying to a specific category of loss within the overall policy limit. Common for valuables, bicycles, electronics, and business equipment.

Example: £1,500 per single article within a £50,000 contents policy.

Per-person limit

Used in liability policies to cap the amount paid to any one injured party, even if the overall limit is higher.

Example: £100,000 per person in a £500,000 liability policy.

How limits interact in a claim

Multiple limits can apply to the same claim, with each one potentially reducing the payout. The order of application is typically: sub-limit first, then per-occurrence limit, then aggregate.

Example: Contents policy claim

Overall contents limit: £40,000
Single article sub-limit: £1,500
Camera equipment lost in burglary (replacement value): £3,200
Claim paid: £1,500 (sub-limit applies; overall limit is not reached)
Gap you bear: £1,700

The fix for this particular gap is to schedule high-value items individually on the policy. A scheduled item is listed by name, description, and agreed value — and is paid at that agreed value rather than the sub-limit. This typically adds a small amount to the premium.

Where to find limits in your policy

Limits appear in two places in a standard policy document:

The declarations page (schedule) — the one-page summary at the front of the policy showing your overall sum insured and premium. This is where headline limits appear.
The insuring agreement and conditions — where sub-limits and per-category limits are typically buried in the body of the policy. These require a careful read to find.

For a full guide to where each type of information sits in a policy document, see the five parts of every policy. The limit glossary entry covers the key terminology used in policy documents.

Checking whether your limits are adequate

The test for adequacy is whether the limit covers your realistic worst-case loss for each category that matters to you — not just the total. Work through each sub-limit against the value of items you own in that category:

Single-article sub-limit vs the value of your most expensive item (jewellery, camera, bicycle, watch)
Liability limit vs the potential size of a claim from your specific activity or property
Business interruption limit vs your actual monthly revenue and fixed costs
Medical limit in travel insurance vs the cost of emergency repatriation from your destination

Use the policy comparison tool to place two policies side by side and see where the limits diverge. For the relationship between limits and under-insurance in home cover specifically, see our news article on home rebuild costs and the average clause.

Policy limits FAQ

Frequently asked questions

: You bear the cost above the limit yourself. This is called being 'exposed above the limit'. For large losses — major liability claims, catastrophic property damage — the gap between a policy limit and the actual loss can be very significant. If you have liability exposure above your standard policy limit, an umbrella or excess liability policy can extend cover above it. See our liability and umbrella insurance overview.
: Most contents policies include a sub-limit for 'valuables' or 'single articles' — typically £1,000–£2,500 per item — regardless of the overall policy limit. An item worth £5,000 is only paid up to the sub-limit unless it was specifically scheduled (named and valued) on the policy. Always check sub-limits for high-value items and schedule them individually if needed.
: A per-occurrence limit caps what the insurer pays for any single incident. An aggregate limit caps the total paid across all claims within the policy period (usually one year). Once the aggregate is exhausted, no further claims are paid — even if individual claims are within the per-occurrence limit. This distinction is particularly important in liability and professional indemnity policies.
: Sub-limits appear in the policy schedule (the declarations page) and in the insuring agreement. They may be listed separately under a 'schedule of benefits' or 'summary of cover'. Reading the five parts of every policy shows exactly where to look for limits in a standard policy document.