Commercial Lines
A blanket property limit differs from a specific (scheduled) limit because a blanket limit:
Answer
Provides one limit covering the 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 one item at one location
- Is always smaller than a specific limit
- Eliminates coinsurance entirely
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