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Glossary

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.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated

Why this matters for property managers

This is the number permit offices and owner contracts specify. Chicago, Nashville, and New Orleans require $1,000,000 per occurrence for short-term rentals; Palm Springs requires $500,000. Certificates that show a lower figure are rejected.

Related terms

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.
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.
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.
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.

Per-occurrence limit: common questions

What per-occurrence limit should a vacation rental carry?

$1M is the practical standard for professionally managed homes and satisfies most municipal requirements.

Can I raise the per-occurrence limit for one property?

Yes. Programs allow limits to vary by property to match local requirements or owner contracts.

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.

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