Which scenario would lead to payout without applying a special limit for loss or damage?

In the context of insurance policies, particularly those that cover property and liability, the application of special limits usually pertains to specific types of loss or damage that are considered higher risk or more susceptible to fraud and abuse. These special limits are often outlined in the policy and are designed to restrict the maximum payout for certain categories of property.

A scenario leading to a payout without applying a special limit typically involves losses covered under the broader terms of the policy, especially those resulting from a listed peril. If the loss is not resulting from a specifically covered event, as in the case of loss NOT from a listed peril, it tends to fall under general coverage policies without those restrictions. This means that the loss could be more comprehensively covered based on the nature of the incident rather than being constrained by the limitations of special coverage.

Thus, the situation that entails no application of special limits for loss or damage usually highlights the differences in coverage based on the events that lead to that loss. This reinforces the importance of understanding which types of losses are eligible for compensation under standard terms and which may face limitations.