Standard Limit
Updated: 11 March 2024
What Does Standard Limit Mean?
A standard limit is the maximum amount of coverage that a policyholder insured by a standard policy can get reimbursed in a policy period. The policyholder will be responsible for any amount that is greater than the amount covered by the standard limit.
Insuranceopedia Explains Standard Limit
Insurers have standard limits so that they know the exact amount of risk that they are liable for. This is important for calculating their profitability. An insurance purchaser can often get coverage beyond the standard limit but they will typically have to buy a non-standard policy. A policy with more coverage generally has higher premiums, so higher limits come at a price.
Related Definitions
Related Terms
Related Articles
Important Insurance Coverage for Seniors
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree