What must be obtained if Blanket Coverage is utilized?

When blanket coverage is utilized in property insurance, a statement of values is essential. This document provides a comprehensive overview of all the properties covered under the blanket policy, including their locations, descriptions, and values. It serves as a fundamental element for determining coverage limits and is necessary to ensure that the insured amounts accurately reflect the values at risk.

Having an updated statement of values allows both the policyholder and the insurer to assess and validate the appropriate coverage during the underwriting process and throughout the policy term. It also plays a key role in the event of a loss, as it helps in determining the actual values that need to be compensated.

While property appraisals, historical costs, and current market analysis can provide valuable information regarding property values, they do not serve the same purpose or provide the specific details required for blanket coverage as effectively as a statement of values does. A statement of values is tailored to the insurance policy and is designed to meet the requirements set forth by insurers, making it the necessary documentation in this context.