Property Coverage

Insurance Coverage 5

Confirm with your insurance agent that you have an adequate amount of insurance to cover all your property.

  • Blanket vs. Specified coverage:
    • Blanket coverage bundles all of your property, or parts of your property into one coverage item, and one amount of insurance.
      • Some companies will provide blanket coverage for all of your buildings. If you have a $50,000 building, a $20,000 building and a $130,000 building they will provide you a total limit of $200,000 that covers all 3 buildings. If there is a claim, the $200,000 limit is shared by all 3 items.
      • Some companies will provide blanket coverage for all of your personal property (non-structures) like tractors, wagons, tools, implements, etc. You complete an inventory of your property and set a limit adequate to cover all of it in the event of a total loss.
        • Most farm/ranch policies separate personal property into farm personal property and household personal property.
          • Farm personal property covers items typically used in the farming operation like farm equipment, supplies, tools, etc.
          • Household personal property covers non-farming property used for personal use like household furniture, clothing, and home electronics.
        • Commercial policies only insure property used in the commercial operation (not household items) so there is no coverage distinction between items used for your farm and items used in your home.
      • All items included in blanket coverage will have the same perils (e.g. fire, wind, hail, lightening, etc.) and the same loss settlement option (replacement or actual cash value), with the exception of any limitations or exclusions written into the policy.
    • Specified coverage:
      • Some companies require you to list each building or piece of equipment individually; each with its own coverage limit; each may have different perils (e.g. fire, wind hail, collapse, lightening, etc.); and each may have different loss settlement options (replacement or actual cash value).
      • With specified coverage, a building or piece of equipment is only covered if it is specifically listed.
    • Some people may pull out specific pieces of high value equipment from their blanket coverage and insure them using specified coverage to obtain better coverage.