VELARIS
Sign In
Glossary

Aggregate limit

The aggregate limit is the maximum total an insurance policy will pay across all claims during the policy period, usually one year. Once the aggregate is exhausted, further claims are not covered until the policy renews.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated

Why this matters for property managers

A single per-occurrence limit can look adequate while the aggregate is quietly too small for a portfolio. A manager with 100 homes and a $1M aggregate has, in effect, $10,000 of annual liability capacity per home. Portfolio programs are sized on the aggregate, not just the per-claim number.

Related terms

Per-occurrence limit
The per-occurrence limit is the maximum a policy pays for a single claim or incident. With a $1,000,000 per-occurrence limit, no single claim can exceed $1,000,000 even if the aggregate limit is higher.
Umbrella policy
An umbrella policy adds a layer of liability coverage above underlying policies. If general liability pays its $1,000,000 limit and a lawsuit demands $1,500,000, the umbrella covers the remaining $500,000.
General liability
General liability covers third-party bodily injury and property damage claims. If a guest trips on a loose step and breaks an arm, general liability pays the medical bills and defends any lawsuit.
Occurrence-based policy
An occurrence-based policy covers any incident that happens during the policy period, regardless of when the claim is filed. Damage in January that is claimed in June — even after the policy expires — is still covered.

Browse every term in the insurance glossary for property managers.

Aggregate limit: common questions

What aggregate limit do property managers need?

It depends on portfolio size and the limits owners and jurisdictions require. Many programs carry $2M aggregate against $1M per occurrence, with an umbrella above for larger operators.

Does the aggregate reset mid-year?

No. It resets at renewal. Some programs allow the aggregate to be reinstated for an additional premium after a large loss.

Related guides

General liability for property managers
Read the full Velaris guide.
Insurance for vacation rental property managers
Read the full Velaris guide.
Certificates of insurance
Read the full Velaris guide.

Want this explained for your portfolio?

Our team speaks plain English and knows property management. Ask us how this applies to the homes you manage.

Get a Quote