Commercial Lines
A blanket property limit differs from a specific (scheduled) limit because a blanket limit:
Answer
Provides one limit covering combined insurable values of multiple buildings and contents
A blanket policy 'provides one limit covering the combined insurable values of all buildings and contents,' which simplifies claim settlement and 'eliminates the possibility of under insuring individual properties.' It removes the need to allocate a separate limit to each property.
Source: HUD Guidebook 7401.5G §2-5 (property insurance requirements)
Not the answer
- Applies only to a single item of property located at one single specified insured location
- Is always smaller in amount than a specific limit
- Eliminates coinsurance requirements entirely
Practice this
The Texas All-Lines Adjuster exam is 150 questions with a scaled passing score of 70, which is neither the number nor the percentage correct. This test uses 70% as a yardstick. The app’s page carries a free ten-question test drawn from the same bank, marked as you go.
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