What Does “Single Limit” Mean in Home Insurance?


A home insurance policy consists of four main coverages: dwelling, personal property (contents), detached private structures and additional living expenses.

The Single Limit clause is an option you can add to your home insurance policy which allows you to combine (or shift) the limits of each of those four coverages mentioned above.

Lets create a sample home insurance policy.

Coverage A Dwelling: $150,000

Coverage B Detached Structures: $50,000

Coverage C Personal Property: $ $50,000

Coverage D Additional Living Expenses: $20,000

Using the figures above, lets assume you are sent out to a hotel for several months and the additional living expenses coverage limit of $20,000 is exceeded by $10,000. This is where your single limit endorsement will allow you to shift the $10,000 from one of the other coverages which weren’t exhausted to cover the shortfall.

Be sure to check your home insurance policy and ensure you have the Single Limit endorsement added. It’s very inexpensive and can save you from a big headache.

Have a question or would like to speak with an insurance broker? Call Filip Ambroziak at (416) 803-2113 or email filipa@pbnet.ca.

Picture of Filip Ambroziak

Filip Ambroziak

Need a quote for your home, auto or business? Call Filip Ambroziak at (416) 803 2113 or email him at filipa@pbnet.ca.

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