With our switch over to our new underwriters, RLI, we’ve eliminated the Continuing Care sublimit for RLI policies (to see which states have moved to RLI, check out the Embrace Pet Insurance Underwriting page on our website.)
Previously, a chronic condition was only payable up to 25% of the policy's annual maximum. For example, if a pet tore a cruciate ligament in term 1 and needed it surgically repaired in term 2, the claim would be subject the sublimit of $2,500 paid from a $10,000 annual maximum policy because the claim is a continuation of a condition that started in a previous policy term. That could leave a lot of out of pocket on a large claim - and they do happen.
Now with the RLI policies, that claim would be paid up to the full $10,000 maximum. Instead of restricting chronic conditions with continuing care sublimit, we now offer a lifetime maximum of $50,000 payout over the course of a pet’s policy life.
You might be thinking, well, that’s still a limit. But, let’s look at how it works for our most popular policy for an example: $10,000 maximum, $200 deductible, 20% co-pay.
In order to hit $10,000 in payout in a given policy year, a pet would need to have $12,700 in covered expenses.
$12,700 in total claims
-$200 deductible
-20% co-pay
$10,000 payout
If a pet had $12,700 in claims five times, then they’d hit the lifetime maximum payout, and we’d no longer insure that pet.
Could $63,500 of claims happen for one dog or cat in a lifetime? Yes. Is it likely? Not at all!
Recently, Lea wondered if one of her dogs might need a major surgery for a long-time condition, and was feeling anxious about the fact that the costs might exceed her continuing care maximum. Then, she realized she no longer have such a limit and was very much relieved. We all are!
P.S. The lifetime maximum is only met with RLI claims. So if you switched from Lloyd's to RLI, old claims paid under your Lloyd’s coverage won’t count toward that maximum. Isn’t that cool?
