Decide which properties belong in one program
A portfolio program can coordinate coverage for several properties, but the proposed policies, named insureds, schedules, property uses, coverage lines, and lender terms decide what can share one policy. A carrier product page and a lender guide describe the edges of that decision; neither establishes that every location, entity, or coverage line can sit in one policy, so work from the actual proposal and the loan documents.[2][1]
If a property in the group secures a Fannie Mae multifamily mortgage loan, start with the lender's definition. Fannie Mae's multifamily guide treats a blanket policy as insurance covering multiple properties and/or perils, and for a property securing a covered mortgage loan it requires the property to appear in the policy or its schedules and requires the blanket coverage to be as good as or better than a single-property policy.[1]
What can actually share one program also comes from carrier appetite. Travelers' real-estate page markets coverage to owners and managers of office and industrial real-estate portfolios and lists property, general liability, business income rental value, equipment breakdown, commercial auto, umbrella, workers' compensation, and cyber among the available lines. That page describes one carrier's product. It does not establish that every listed line is included, that every property or occupancy qualifies, or that all locations, entities, and coverage lines belong in one policy.[2]
- Named insureds and ownership. Fannie Mae's blanket review asks whether the policy covers related or unrelated entities.[1]
- Property use. The Travelers page names office and industrial real-estate portfolios as the audience for that offering, which is narrower than the uses in many mixed portfolios.[2]
- Coverage lines. Property, general liability, business income rental value, equipment breakdown, commercial auto, umbrella, workers' compensation, and cyber appear as separate listed lines on that page, so ask an underwriter which lines a proposed program includes.[2]
- Lender terms. For a multifamily property securing a covered Fannie Mae mortgage loan, the property must be listed in the policy or schedules and the blanket coverage must be as good as or better than a single-property policy.[1]
Compare scheduled and blanket limits
A schedule identifies each covered location and the values behind it. Fannie Mae's guide directs review of the schedule of values on a blanket policy and requires each property securing a covered mortgage loan to appear in the policy or its schedules.[1]
A blanket limit is one limit that applies to more than one thing. The CP 00 10 09 25 building and personal property form posted by Missouri Farm Bureau shows a single limit applying to buildings and personal property at more than one location, and Fannie Mae's definition covers multiple properties and/or perils.[4][1]
| Structure | How the limit is stated | What the cited document shows |
|---|---|---|
| Limit stated for scheduled property | A stated limit of liability for the covered property, with a declared coinsurance percentage | The TWIA commercial windstorm and hail form runs its coinsurance calculation on the value, the declared coinsurance percentage, and the stated limit of liability, then applies the deductible |
| One limit across more than one location | A single limit covering buildings and personal property at more than one location | The posted CP 00 10 09 25 form tests coinsurance against the total value of all property covered by that limit, and its multi-location example shows a reduced payment when the shared limit falls short |
| Blanket policy under a covered Fannie Mae multifamily loan | Coverage for multiple properties and/or perils, with each property listed in the policy or its schedules | Fannie Mae requires the blanket coverage to be as good as or better than a single-property policy and directs review of shared per-occurrence limits, geographic concentration, aggregated values, stated catastrophe reinstatement exceptions, and the largest total insurable value |
Terms as captured in the cited forms and lender guide. The issued declarations, forms, and endorsements control your program.[3][4][1]
Work through the proposed forms with a fixed checklist so both structures are compared on the same points rather than on the summary page of a proposal.
- Identify which locations and which coverage categories share each proposed limit, then confirm that answer in the declarations, forms, and endorsements. The posted CP 00 10 09 25 form shows one limit applying to buildings and personal property at more than one location, so a shared limit can cross both addresses and property categories.[4]
- Ask whether a catastrophe sublimit applies to the program, which perils and which scheduled locations it reaches, and how it sits inside or beside the shared limit. Get the wording, not a summary.
- Compare deductibles alongside limits, forms, exclusions, and optional coverages, which is what Texas Department of Insurance guidance tells commercial buyers to compare.[6]
- Confirm the order the calculation runs. In the TWIA commercial windstorm and hail form, the coinsurance calculation comes first and the deductible is applied afterward.[3]
- Ask how a limit reinstates after a loss. Fannie Mae directs review of stated catastrophe reinstatement exceptions on blanket policies, together with shared per-occurrence limits, geographic concentration, aggregated values, and the largest total insurable value.[1]
- Read the loss-settlement wording and ask whether the proposal contains a margin clause or any other cap that limits what is payable at one location relative to the value reported for it.
- Ask about per-location restrictions inside a shared limit, such as a location-specific sublimit, a different deductible, or a peril excluded at one address only.
Coverage questions in this guide
A shared record keeps related coverage questions in one place.
- Limits stated for scheduled property
Each covered location is identified with its values. Fannie Mae requires a property securing a covered multifamily mortgage loan to appear in the policy or its schedules, and the TWIA commercial windstorm and hail form works from a stated limit of liability and a declared coinsurance percentage for the covered property.[1][3]
Review: Confirm every address, entity, and value appears on the schedule attached to the issued policy.
- Blanket limit shared across locations
Fannie Mae defines a blanket policy as insurance covering multiple properties and/or perils and directs review of shared per-occurrence limits. The posted CP 00 10 09 25 form shows one limit applying to buildings and personal property at more than one location.[1][4]
Review: Ask which properties and coverage categories share the limit, and what is left after one occurrence.
- Coinsurance across portfolio values
The TWIA form applies its coinsurance calculation to the value, declared coinsurance percentage, and stated limit of liability, then applies the deductible. The posted CP 00 10 09 25 form applies coinsurance to the total value of all property covered by a shared limit, with an example showing a reduced payment.[3][4]
Review: Check the declared coinsurance percentage and the values it is tested against at each location.
- Replacement cost or actual cash value
Texas Department of Insurance guidance distinguishes replacement cost from actual cash value for commercial property and tells buyers to compare deductibles, limits, forms, exclusions, and optional coverages.[6]
Review: Confirm the valuation basis shown on the declarations for each scheduled location, not only the basis discussed in the proposal call.
- Newly acquired or constructed property
The posted CP 00 10 09 25 form extends stated building and business-personal-property coverage to certain newly constructed buildings and newly acquired locations or property, subject to stated uses, per-building limits, the declarations, coinsurance or value-reporting conditions, and the extension's ending conditions.[5]
Review: Read the stated uses, per-building limits, and ending conditions in your own form, then report each acquisition in writing.
Set values before choosing limits
Limits argue from values, so build the values first. The Texas Department of Insurance's commercial property guide distinguishes replacement cost from actual cash value, so decide which basis you want quoted at each location and confirm what the declarations actually say.[6]
- A building value at each address and the valuation basis you want quoted there, replacement cost or actual cash value.[6]
- Business property values at each location, with the deductibles and limits you want compared against them.[6]
- Optional coverages you want priced, such as business interruption, extra expense, ordinance or law, and boiler and machinery.[6]
Coinsurance is where those values meet the limit. In the TWIA commercial windstorm and hail form, the calculation uses the value of the covered property, the declared coinsurance percentage, and the stated limit of liability, and its examples show that a limit below the required amount can reduce the covered payment.[3]
A shared limit changes what the calculation is measured against. In the posted CP 00 10 09 25 form, the coinsurance condition applies to the total value of all property covered by that limit, and its multi-location example shows a reduced payment when the shared limit is below the amount required by the stated coinsurance percentage.[4]
Separate risks that need different treatment
Underwriters read a portfolio address by address. Nationwide's middle-market commercial real-estate submission list asks for rent rolls or equivalent statement-of-values information, an ACORD application and a real-estate supplemental or equivalent underwriting information, executed third-party contracts and leases, and five years of currently valued loss runs. Those records carry the occupancy, rent, contract, and loss facts for each location in the schedule.[7]
Before you send the schedule, mark the facts that make one location different from the others. Describe each address the same way in every proposal so a difference in terms reflects the risk rather than a difference in what you told each market.
- Occupancy and tenant mix at each address, with the rent detail behind it. Nationwide's middle-market list asks for rent rolls or equivalent statement-of-values information.[7]
- Construction of each building, protection features such as sprinklers, alarms, and security, any vacant or partly vacant space, and any renovation or construction underway. Record these address by address, with dates for the work.
- Catastrophe concentration. Fannie Mae's blanket review looks at geographic concentration, aggregated values, shared per-occurrence limits, stated catastrophe reinstatement exceptions, and the largest total insurable value in the program.[1]
- Entity structure. That same review asks whether the policy covers related or unrelated entities.[1]
- Contracts, leases, and loss history. Nationwide's list asks for executed third-party contracts and leases and five years of currently valued loss runs.[7]
- Use and audience fit. Travelers markets that real-estate offering to owners and managers of office and industrial portfolios, and the page does not establish that every property or occupancy qualifies.[2]
- Account size. Nationwide's page sets a middle-market threshold of at least $100,000 in total account premium and at least $20 million in property value; a smaller portfolio or another carrier may be asked for fewer, different, or additional records.[7]
Report acquisitions and property changes promptly
A portfolio schedule moves during the term. An acquisition, disposition, renovation, occupancy change, entity change, or lender requirement can call for notice, scheduling, an endorsement, a new valuation, or a separate policy under the actual contract, so treat each change as a coverage question rather than a bookkeeping entry.[5]
If the new property secures a covered Fannie Mae multifamily mortgage loan, the guide requires it to appear in the policy or its schedules, so adding it to an existing blanket program still means getting it onto the schedule of values that the lender reviews.[1]
- Written confirmation that the address, entity, and value are on the schedule, and the effective date of the endorsement that put them there.[5][1]
- The limit applying to the new location, and whether it is stated for that location or shared with buildings and personal property elsewhere.[4]
- The valuation basis quoted for the new building, replacement cost or actual cash value.[6]
- Named insureds after an entity change and lender interests after a financing change, since a blanket review looks at whether related or unrelated entities are covered.[1]
- Whether an extension covered the property before the endorsement, under which stated uses and limits, and when that extension ended.[5]
Give each carrier the same portfolio records
Send every market the same file. When the addresses, values, and loss data are identical across submissions, the terms that come back can be compared line by line instead of reconciled.
- Legal entities and ownership for each property, because a blanket review asks whether the policy covers related or unrelated entities.[1]
- Property addresses, uses, and a schedule of values; a property securing a covered Fannie Mae multifamily loan has to appear in the policy or its schedules.[1]
- Unit counts, tenant information, and rent detail for each property. Nationwide's middle-market list asks for rent rolls or equivalent statement-of-values information.[7]
- An ACORD application and a real-estate supplemental or equivalent underwriting information, which that same list requests.[7]
- Building and business-property values at each address, with the valuation basis you want quoted there; Texas Department of Insurance guidance distinguishes replacement cost from actual cash value.[6]
- Business income or rental value figures for any location where you want business interruption or extra expense quoted; the Texas guide lists both among optional coverages to compare.[6]
- Construction of each building, renovations or construction underway with their dates, protection features, and any vacant or partly vacant space.
- Catastrophe exposures and how values group geographically. A Fannie Mae blanket review examines geographic concentration, aggregated values, and the largest total insurable value alongside shared per-occurrence limits and stated catastrophe reinstatement exceptions.[1]
- Your current policies with their limits, deductibles, forms, exclusions, and valuation basis, since Texas guidance tells commercial buyers to compare exactly those terms along with optional coverages.[6]
- Executed third-party contracts and leases.[7]
- Each lender and the insurance terms in its loan documents. For a multifamily property securing a covered Fannie Mae mortgage loan, the property must be listed in the policy or its schedules and blanket coverage must be as good as or better than a single-property policy.[1]
- Acquisitions and dispositions since the last renewal, with the dates each property came onto or left the schedule.
- Five years of currently valued loss runs.[7]
Property Covered is a property insurance marketplace operated by Switchboard Risk Technologies Inc., a licensed insurance producer, with access to more than 400 carriers and market options. That count describes the marketplace, not the number of carriers that will look at one portfolio. Owners, landlords, lessors, portfolio operators, and property managers can use it, and licensed support is available by phone at (888) 693-8980. Carriers make the final eligibility, pricing, binding, policy, and claims decisions.
Related: How Property Covered works, Commercial property insurance guide
A quote request is free, carries no purchase obligation, and records your portfolio details for licensed follow-up.
Related: Quote route
Sources
- 1.Fannie Mae, Multifamily Selling and Servicing Guide: Property and Liability Insurance, Section 501.01C
- 2.Travelers, Real Estate Owners Insurance Coverages
- 3.Texas Windstorm Insurance Association, T.W.I.A. Commercial Policy: Windstorm and Hail, form prescribed by the Texas Department of Insurance
- 4.Missouri Farm Bureau Insurance and ISO Properties, Inc., Building and Personal Property Coverage Form CP 00 10 09 25
- 5.Missouri Farm Bureau Insurance and ISO Properties, Inc., Building and Personal Property Coverage Form CP 00 10 09 25, Coverage Extensions
- 6.Texas Department of Insurance, Commercial property insurance guide
- 7.Nationwide, CustomSolutions for real estate
Common questions
It is a way of arranging coverage for several properties through one program, though the proposed policies, named insureds, schedules, property uses, coverage lines, and lender terms decide what can share one policy. Fannie Mae's multifamily guide defines a blanket policy as insurance covering multiple properties and/or perils, and for a property securing a covered mortgage loan it requires each property to appear in the policy or its schedules and requires the blanket coverage to be as good as or better than a single-property policy. A commercial building and personal property form shows the mechanics on the limit side: one limit can apply to buildings and personal property at more than one location. A carrier's product page, such as the Travelers real-estate page written for office and industrial portfolios, does not establish that every listed coverage line is included or that every property or occupancy qualifies. [1][4][2]
A scheduled structure states a limit for the covered property at an identified location. The TWIA commercial windstorm and hail form runs its coinsurance calculation on the value, the declared coinsurance percentage, and that stated limit of liability, then applies the deductible. A blanket limit applies to more than one thing at once: the posted CP 00 10 09 25 form shows a single limit covering buildings and personal property at more than one location, with coinsurance tested against the total value of all property covered by that limit. [3][4]
No. Fannie Mae's blanket review examines the schedule of values, aggregated values, geographic concentration, and the largest total insurable value, and requires each property securing a covered loan to be listed in the policy or its schedules. Under the posted CP 00 10 09 25 form, the coinsurance condition is measured against the total value of all property covered by the shared limit, and its example shows a reduced payment when that limit falls below the required amount. [1][4]
Report it and get the endorsement in writing. The posted CP 00 10 09 25 form extends coverage to certain newly acquired or constructed property, but only for stated uses and per-building limits and subject to the declarations, coinsurance or value-reporting conditions, and the extension's ending conditions; one carrier-hosted form does not prove automatic coverage under another policy. If the property secures a covered Fannie Mae multifamily mortgage loan, it also has to appear in the policy or its schedules. [5][1]
Nationwide's middle-market commercial real-estate submission list asks for rent rolls or equivalent statement-of-values information, an ACORD application and a real-estate supplemental or equivalent underwriting information, executed third-party contracts and leases, and five years of currently valued loss runs. That page describes a program for accounts with at least $100,000 in total account premium and at least $20 million in property value, and a smaller portfolio or another carrier may request fewer, different, or additional records. [7]
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