Blanket Insurance: Everything You Need to Know

Summary: Insuring property under a blanket limit as opposed to a specific limit of insurance can be a good decision for many insureds. There are several options for insuring commercial property, including specific or blanket limit, replacement cost, functional replacement cost, and agreed value. An insured can even choose to have part of their property included in a blanket limit while other property can be insured under a specific limit of insurance. They can choose to have their buildings insured under a specific limit while business personal property is insured under a blanket limit, or vice versa; or a blanket limit could even apply to a single location covering both the building and business personal property under one limit. 

Replacement cost and agreed value options can be combined under a blanket or specific limit of insurance. With so many choices it can be difficult for an insured to choose the best approach, and an agent can be most helpful in this situation. In this discussion, we will look at some of the questions we’ve received from subscribers who had their properties under a blanket limit of insurance and explain how the combined options work in real-life examples.