OT: Landlords Home Insurance

I wonder if that's just trying to make themselves look good rather than overproviding - it'll probably cost them the same to provide 20M as 0.5M, for the reasons you stated (ie the claims won't get as high as the lower figure) but the bigger numbers look better in the brochure.

Of course! Any excessively large figure you can ignore as they know it will never reach that so the risk of including it is small and it gives a wow factor. It's the comparison between the lower/lowest figures you should concentrate on as that's where they are limiting their liability, which means they expect claims to be in that region. Medical bills are effectively limited as you just die in the end so they can whack the cover up really high. Public liability claims are essentially limitless so that's where the real competition is (for example).