A property policy is designed to insure all buildings, contents and other property for the amount of coverage. It's important how policy limits are expressed:
- A blanket limit represents the total value of all structures and their contents. The entire amount of coverage is available in the event of loss to any location under the policy.
- Specific limits itemize the value of specific buildings and their contents. Recovery is limited to stated values.
Tip: To maximize coverage available for any loss, arrange a blanket property limit whenever it is available.
Sublimits or caps may be placed on some perils, such as protection against flood and earthquake. Many commercial carriers limit coverage for fine arts to a specific dollar threshold.
Floater endorsements may "carve out" special types of property, such as individual works of fine art or audiovisual equipment, for coverage based on declared value supported by appraisals.