Whether you’re a business owner or a landlord, proper insurance coverage will protect you and the property from financial liability. Under the parameters of your policy, you may need to select between a blanket limit and a specific limit. Here’s how to determine which type of business insurance is right for your needs.

Specific Limit

A policy with a specific limit applies only to a single piece of property at one location. If the insured property is damaged—and the cause is covered by the insurance policy—the insurer would pay only a set amount for the repair or replacement. 

In this situation, your policy would cover the property and the contents within it. For example, let's say the coverage is $500,000 for the building and $250,000 for the contents. If the cost to repair the damage to the building is over $600,000, the insurance won't cover the remaining $100,000. 

Blanket Limit 

By contrast, a blanket limit applies to multiple properties at one location, the same kinds of properties across several different locations, or all properties at any fully insured location. If you choose a blanket limit, you have a few different options:

•  Set one blanket limit to apply to all building properties and another limit to apply to all the contents of all locations.
• Bundle the limit for the building and its contents, but set up a limit for each individual property. 
• Bundle the limit for the building and its contents that covers all the properties.

This is a beneficial option for business owners whose property values may fluctuate during the insurance policy period. The limit is applicable across all locations, no matter where the damage may occur. For example, if you own condominiums with a couple of locations in the county, you could protect them both with the exact same policy under a blanket limit. If both properties were damaged in a fire, your policy would pay for the repair work until the limit was completely met.
 

Trust in the professionals at 1^st Insurance Group to help you find the perfect policy for your most valuable investments. Based in Tempe, AZ, they’ll work closely with you to select the right business insurance policy for your specific needs. They can also assist with your other important assets, including your home and car. Visit the website for more information, or call (480) 883-9977 to schedule an appointment.