Using a blanket limit policy on a real estate portfolio is ideal and has been readily available up until recently. In today’s hard market, a true blanket policy is difficult to place or even keep at renewal. Below are some of the changes we are seeing in today’s market, oftentimes without the insured or even the insurance broker noticing.
These policy endorsements can be dangerous:
- Blanket Policy with a margin clause.
- Blanket Policy with an Occurrence Limit of Liability Endorsement (OLL)
- Blanket Policy with a Building Replacement Cost Endorsement (BRC)
Think of these endorsements as your policies “fine print.” With them, it will appear that you have a blanket limit policy providing full coverage at the time of loss. However, each of the above endorsements reduce the loss payments to the reported values on your statement of values, converting this to a stated limit policy.
In other words, when you think you have more than enough coverage, you actually have an alarmingly low limit, well below your replacement cost, putting you at great financial risk.
At Commercial Coverage Insurance Agency, we know portfolio property insurance. Call us today for a fast and instant review on how we can improve your insurance coverage today.