Sub-limits: why the sum insured is not the sum for everything
Short answer
Besides an overall sum insured, home policies contain sub-limits per category — electronics, valuables, cash, bicycles — and compensation for those groups cannot exceed the relevant sub-limit.
Why they exist
Because the risk differs. A television and a jewellery collection can be worth the same, but the chance of them being stolen is not the same. Sub-limits keep the premium reasonable instead of everyone paying for the most expensive possible case.
Where they surprise people
Most often in theft: the overall sum looks adequate, but the valuables limit is used up by a single ring and the cash limit is often symbolic. Electronics sometimes also carry a requirement to prove ownership — an invoice or a photograph.
What to do with a valuable item
Expensive single items are declared separately and listed by name, usually with a valuation. That raises the premium, but it is the only way for that item to be covered at its real value rather than up to the general sub-limit.
Frequently asked questions
- How do I find out my sub-limits?
- They are in the policy and the terms, usually in a table by category. If the table is missing, ask for it in writing before signing.
- Is cash covered?
- Often yes, but up to a low limit and under specific storage conditions. The exact wording decides, not the general impression.
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