Policy Limit
Also called: coverage limit, sum insured, sub-limit
A policy limit is the most an insurer will pay, per claim or per year. Sub-limits sit inside it for specific categories — jewellery, cash, water damage — and are where underinsurance usually hides. Liability limits are the ones worth stress-testing: a serious injury judgment can far exceed a standard auto policy's limit, and the excess comes from your own assets.