Claims & Insurance
Policy limits
The most a policy will pay for a covered loss. On a homeowners policy that is split into Coverage A for the dwelling, Coverage B for other structures, and Coverage C for contents. Limits apply per occurrence or per policy period depending on the form, so check the declarations page before assuming a scope fits.
More claims & insurance terms
- Policy
The insurance contract that spells out what is covered, the limits, and the deductible.
- Policy endorsement
A written change added to an insurance policy that alters its coverage, such as adding a water backup limit, changing the deductible, or scheduling a valuable item. Endorsements control over the base policy wording, so read them before promising that something is covered.
- Policyholder
The person or business that owns the insurance policy, and the party the claim is filed on behalf of, not the carrier.
- Pre-existing damage
Wear, rot, or failure that existed before the loss date and is not covered by the policy. Adjusters exclude it, so contractors should document the condition at the time of inspection with dated photos and note what the new damage added on top of it.
- Preferred vendor program
An arrangement where an insurer steers work to contractors who agree to its pricing and service standards. Contractors in these programs usually give up some price negotiation, so read the agreement and know what you can still supplement before signing.
- Premium
What the policyholder pays the insurer for coverage, usually monthly or annually. Contractors should not quote it or adjust a scope to fit it, because the premium reflects the policy's limits and deductible, and the loss is priced from the damage.
Common questions
What does "Policy limits" mean in Xactimate estimating?
The most a policy will pay for a covered loss. On a homeowners policy that is split into Coverage A for the dwelling, Coverage B for other structures, and Coverage C for contents. Limits apply per occurrence or per policy period depending on the form, so check the declarations page before assuming a scope fits.
Where does "Policy limits" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow. Browse the glossary for related terms.
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