Property Insurance FundamentalsQuestion 236 of 474
Blanket insurance differs from specific insurance in that a blanket limit:
a.Applies a separate limit to each building
b.Applies only after specific limits are used
c.Covers several items under one shared limit
d.Covers one item at one described location
Explanation
A blanket limit is a single amount standing behind two or more buildings, locations or categories of property, so it can flow to wherever the loss happens. The descriptions naming one item at one location, or a separate limit for each building, both define specific insurance, the arrangement blanket coverage is contrasted with. Blanket is not an excess layer above other limits.
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Related questions on this topic
- Which of these people has an insurable interest in one particular house?
- Two partners each own an undivided one-half interest in a $300,000 rental building. One buys a policy in her own name with a $300,000 limit. Fire destroys the building. She may collect:
- The limit of insurance shown on the declarations page of a property policy represents:
- The practical effect of an agreed value provision on a property policy is that:
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