Combined Single Limit

What Does Combined Single Limit Mean?

A combined single limit is a clause in an insurance property that states that coverage for all aspects of a claim is limited to a single amount. Whether there is property damage, injury to other persons, and so on, the single limit applies to the entire claim payout. This is commonly seen in property insurance.

Insuranceopedia Explains Combined Single Limit

In contract, split limit coverage specifies different maximum amounts awarded to different components of an insurance claim. For example, a combined single limit policy might have a limit of $300,000 per claim, but a split limit policy might max out at $80,000 per person for bodily injuries, $50,000 for property damage, and a maximum of $300,000 per claim. This means an insured individual who files a claim for $200,000 in damages due to injuries would receive $200,000 from the combined limit policy, but only $80,000 from the split limit policy. Therefore, the former provides more coverage overall and therefore tends to cost more. To supplement a split or combined limit policy, an umbrella policy may be a wise choice to protect against costly risks.