Blanket vs Specific Coverage
Blanket
– A SINGLE policy coverage MULTIPLE classes, for ONE price.
I think of a blanket as an actual blanket on the bed. You and your partner are different (Multiple classes) and you each have to fight for the blanket, it covers both of you even though you are separate people.
Example in real life: A $500,000 policy that covers the building and personal property for one premium.
Specific
– A policy that covers a specific unit.
I like to think of specific as a Sleep # bed, each person gets their own side of the bed and can change the mattress to be harder or softer. So you generally have one policy too, but it covers each person separately and each type of coverage has its own premium like a person can have their own sleep # even though they are on the same bed.
Example in real life: A $500,000 policy that covers the building for $300,000 and personal property for $200,000. (See how each thing gets it’s own amount of coverage?)
The company who sells the bond to the contractor, and who will pay out if the contractor fails is known as the Guarantor or surety.
The customer whose kitchen is being repaired and will be paid the bond in the event the contractor fails in is known as Obligee or insured.
Two Types of Bond
There are two types of bonds that are asked about the most:
- Surety bond that guarantees the performance of someone like the contractor.
- A Fidelity bond guarantees that a person is trustworthy.
Recommended: Gold
The GOLD Course is ALWAYS the recommended class series for all students as it teaches the material in more depth. Over 30 hours of the most in depth classes with a more intensive teaching of the topic. Learn more about P&C GOLD
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