Property insurance policies consist of many limits, and each of them is applied to each location. In lieu of scheduling each limit and location independently, a blanket property policy utilizes one limit for all coverages and locations.
The building coverage on a property policy reimburses damages to or loss of the entire building. Personal property coverage pays for loss or damage to items within the building that are not permanently affixed. Business income coverage reimburses loss of income as a result of the loss.
Each of the coverage sections has its own scheduled limit. If an insured party has multiple locations insured, the loss limits will also apply differently to each location.
Instead of scheduling each coverage for each location, the insured can arrange for coverage that will apply to all locations and to all coverage types, known as a blanket limit.
Insureds that have multiple locations and personal property values that regularly change are well-suited for blanket property insurance. The blanket limit will eliminate the potential of a coverage gap due to wrongly scheduled property.
Blanket property insurance can save the insured on premiums when efficiently calculating the total limit required compared with purchasing separate limits.
Living in Southern California, Tom Zuo is a risk-management professional with decades of experience. He has been writing since 1985, specializing in topics related to insurance and risk management. Zuo holds a Bachelor of Arts in English and mass communication.