If the sum insured under a caravan policy is £10,000, what is the maximum single article limit?

Study for the CII Certificate in Insurance - Household insurance products (IF6) Test. Prepare with multiple choice questions and comprehensive materials to enhance your understanding of household insurance.

In a caravan insurance policy, the maximum single article limit is typically set as a percentage of the total sum insured. When the sum insured is £10,000, the maximum single article limit is often established at around 25% of that amount. This calculation leads to a limit of £2,500 for any single item.

Therefore, selecting £2,500 as the maximum single article limit is appropriate, as it aligns with common underwriting practices in household and specific insurance policies. This limit is in place to ensure that while individual articles can be covered, there is also a cap to prevent excessive claims on high-value items, maintaining the policy's balance and sustainability.

Other limits do not correspond to standard practices, making £2,500 the reasonable choice based on the information provided.

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