Coverage and Limits

Terms that define what a policy covers and how limits apply.

Coverage and limits pages explain what protection a policy actually grants, where the insurer’s obligation stops, and how limits, exclusions, and valuation rules affect the amount paid.

This section is where readers move from a general idea of “having insurance” to the actual payment logic. The main questions are usually: what kind of loss is insured, what wording structure applies, and what smaller caps or conditions still narrow the amount paid.

Start Here

Why This Section Matters

Readers often know they have “coverage” without understanding the limits, deductibles, valuation method, or wording conditions that decide whether a loss is fully paid, partly paid, or not covered at all.

Read This Section By Question

If the reader needs to know whether the cause of loss is even covered

Start with Peril, Named Perils, Specified Perils, and All Risks.

If the reader needs to know why the payout is still smaller than expected

Read Policy Limit, Sublimit, Deductible, and Coinsurance together.

If the reader needs the broad contract promise first

Use Coverage as the starting page, then move to the narrower peril and limit mechanics that shape the actual result.

Typical Reading Paths

If the issue is… Start here Then read
The insured wants to know whether a cause of loss is inside the policy structure Coverage Peril, Named Perils, All Risks
A property claim failed because the cause was not on the list Named Perils Specified Perils, Peril, Exclusion
The insured had a large overall limit but still hit a lower cap Sublimit Policy Limit, Declarations Page, Scheduled Property

In this section

  • Aggregate Limit
    Aggregate limit in Canada: how a total policy-period cap affects liability coverage.
  • All Risks
    All-risks coverage in Canada: how broad property wording still depends on exclusions and limits.
  • Coverage
    The policy's insuring promise after limits, exclusions, and conditions are applied.
  • Indemnity
    Indemnity in Canada: how insurance is meant to restore loss rather than create profit.
  • Liability Insurance
    Coverage for injury, damage, or loss the insured is legally responsible for.
  • Named Perils
    Named perils coverage in Canada: how listed causes of loss limit property protection.
  • Peril
    Cause of loss recognized by property wording before a claim can be paid.
  • Policy Limit
    Maximum amount the insurer agrees to pay under the applicable coverage.
  • Specified Perils
    Specified perils in Canadian insurance: how coverage is limited to a stated list of causes of loss.
  • Sublimit
    Sublimit in Canada: how a lower cap can apply inside broader insurance coverage.
Revised on Friday, April 24, 2026