In the context of property insurance, what does the term "per occurrence" refer to?

The term "per occurrence" in property insurance specifically refers to the limit of coverage applicable to a single claim or incident. This means that in the event of a loss, the insurance policy will pay up to a specified dollar amount for each individual claim, regardless of the number of related claims or the total claims made during a policy period.

This concept is crucial for policyholders as it defines the maximum financial protection available for each separate incident. For instance, if a homeowner suffers multiple claims within the same policy period due to different events—like a fire and a water leak—the limit per occurrence indicates the maximum payout for each event independently, rather than aggregating all claims under a single maximum limit.

Understanding this term helps both adjusters and policyholders in assessing the adequacy of coverage for various risks and ensuring that all potential claims fall within the specified limits of the insurance policy.