What are 'Scheduled Limits' in property insurance?

Scheduled limits in property insurance refer to the specified coverage amounts for different items that are explicitly designated in the policy. This means that when an insurance policy is issued, it identifies particular items or categories of property and assigns a distinct insurance limit to each of them. This approach allows for tailored coverage that can precisely match the value of the individual items insured, such as jewelry, art, or high-value equipment, which typically require specific attention due to their unique worth.

This method contrasts with broader coverage terms or aggregate limits that may encompass multiple items under a single coverage limit. Scheduled limits provide clarity and assurance that specific high-value items are adequately insured to their appraised values, avoiding the complexities that can come with blanket coverage where individual item values might be underestimated.

The other options do not accurately represent the concept of scheduled limits. Limits on the number of claims pertain to claims frequency rather than coverage amounts. Limits applying only to personal property are misleading since scheduled limits can apply across various property types, not just personal property. Lastly, the idea of unlimited coverage contradicts the basic principles of insurance, where all coverage types have defined limits to manage risk effectively.