What I\u2019m talking about is insurance on your business personal property, structures, and buildings\u2026. And even loss of business income if those things become damaged.<\/p>\n
There are basically two ways to insure things:<\/b><\/p>\n Insuring something individually goes like this: you own three buildings, each one with a reconstruction cost of $1,000,000.\u00a0 You have one policy that insures each of those three buildings.\u00a0 Each building is listed (or scheduled) on the policy each with a limit of $1,000,000.\u00a0 If a fire burns down one (or all) of your building(s), your policy will pay up to a $1,000,000 for each buildings.<\/p>\n Blanketing goes like this: you own three buildings, each one with a reconstruction cost of $1,000,000.\u00a0 You have one policy that insures each of those three buildings.\u00a0 Each building is listed on the policy but there is no individual limit for each building. \u00a0There is, however, later on down the page, a total reconstruction limit of $3,000,000 that covers all buildings listed.<\/p>\n What\u2019s the difference?<\/b><\/p>\n The difference is that in the first example, each building was subject to a limit of $1,000,000.\u00a0 In the second example, the building was not subject to an individual limit, but rather all three buildings were subject to a total of $3,000,000.\u00a0 Envision it this way.\u00a0 Individual: three pots of money, each worth $1,000,000 available if needed.\u00a0 Blanket: one big pot of money worth $3,000,000 available if needed.<\/p>\n Why does it matter?<\/b><\/p>\n Simply put, because determining the reconstruction cost of anything is difficult and conditions change.\u00a0 Yes, you just had the buildings built and are certain that it would cost $1,000,000 each to rebuild.\u00a0 But what if you add an elevator, a fountain, and marble flooring in the lobby, and for $100,000 and forget to tell your insurance agent? \u00a0(Yes, it happens: people forget to tell their insurance agent these kinds of things). \u00a0Or, what if the cost of construction materials increases? \u00a0So let\u2019s say one of the buildings burns down, and the actual cost to rebuild it $1,200,000. \u00a0If you insured the buildings individually, you would have to come up with $200,000 out of your own pocket to make up the difference.\u00a0 If you blanketed the buildings, you would be covered because you have the full $3,000,000 at your disposal.<\/p>\n Advantage: blanket!<\/b><\/p>\n That\u2019s how it works. \u00a0It\u2019s that simple!\u00a0 Well, almost that simple.\u00a0 There are other factors at play, such as deductibles and \u00a0co-insurance that could\/would affect the total payout, but as far as blanketing goes, that\u2019s how it works.\u00a0 And again it doesn\u2019t have to be buildings.\u00a0 You can blanket, equipment, structures, business personal property, inventory, and more.\u00a0 In fact, you may have a policy right now that blankets items and you didn\u2019t realize it! \u00a0Most policies have some sort of blanket coverage on certain items.<\/p>\n Has anyone experienced an insurance loss that utilized a blanket in order to get the full replacement value?<\/p>\n \n","protected":false},"excerpt":{"rendered":" First, when I say blanket insurance, I\u2019m not talking […]<\/p>\n","protected":false},"author":3,"featured_media":625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[2,5],"class_list":["post-624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-insurance","category-property-insurance","tag-business-insurance","tag-property-insurance"],"_links":{"self":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/posts\/624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/comments?post=624"}],"version-history":[{"count":0,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/posts\/624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/media?parent=624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/categories?post=624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finfrockweb.com\/gis\/wp-json\/wp\/v2\/tags?post=624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n