When one limit isn’t the whole value.
Property coverage stacked in layers above a primary limit, for owners whose buildings, contents and business income add up to more than one policy is built to carry.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Limits stacked one above another
On a large schedule, the primary property policy often covers only the first part of the total. The Big “I” gives the example of a $100 million schedule where the primary policy provides only the first $10 million. Excess layers sit on top of it. Each layer pays only after a loss passes the limits below it, until the layers together reach the amount you decide to carry. IRMI calls this layering: a series of insurers writing coverage, each one in excess of lower limits written by other insurers.
Many large programs also share one limit across several properties, so a single occurrence limit has to be big enough for the worst loss at any one location. The work is in making the layers behave like one policy, with the same perils, definitions and deductibles from the bottom to the top, so a loss doesn’t fall between them. I build the tower around your statement of values, line up the wording and take each layer to market.
- Primary layerThe first policy, which pays from the deductible up to its own limit.
- Excess layersEach one pays only after losses use up the limits beneath it.
- Values vs. limitOn a value reporting form, premium is based on all the values you report, even above the limit.
- Lender reviewLenders may check that a shared limit covers the largest property’s total insurable value.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Statement of values: every location with construction, occupancy, year built, square footage and protection.
- Values: building, contents and business income for each location.
- Current program: declarations for each layer, with limits and attachment points.
- Loss runs: five years of claims history across the schedule.
- Lender terms: the insurance section of each loan agreement.
- Catastrophe exposure: which locations sit in earthquake, flood or wind zones.
Excess property insurance, answered
What is excess property insurance?
Property coverage that pays only after a loss exceeds the limit of the policy beneath it. Stacked together, primary and excess layers build a total limit higher than any one layer, the same layering approach used for umbrella liability programs.
Is excess property the same as a commercial umbrella?
No. A commercial umbrella covers the amount of loss above the limits of a basic liability policy: it’s liability coverage. Excess property sits above a property limit and pays for damage to your own buildings, contents and income.
Why would my limit be lower than my total values?
When values are spread across locations, one loss rarely reaches all of them, so owners may buy limits up to their probable maximum loss rather than the full schedule. Anything above the limit you carry is yours, plus any coinsurance penalty the policy applies, so I test the limit against the largest location before you decide.
What do lenders look for on a shared or blanket limit?
Fannie Mae’s multifamily guide is one example. It asks lenders to review the schedule of values and geographic concentration, confirm the coverage is as good as a single property policy, confirm the limit is enough for the largest total insurable value, and confirm limits reinstate after a casualty except for earthquake, flood and terrorism.
Can an excess layer be placed in the surplus lines market?
Yes. Surplus line companies, sometimes called the non-admitted market, offer insurance to businesses that can’t find it in the standard market. When a layer goes there, I explain what that means for you before you bind it.
Do you offer excess property insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 48 states and Washington, DC and places policies there directly. In Florida and Washington, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
- IRMI: Layering
- Independent Insurance Agents & Brokers of America, IA Magazine: Commercial property stated values, total limits and calculating premiums
- Fannie Mae Multifamily Guide 501.01C: Blanket and other policies covering multiple properties
- California Department of Insurance: Commercial insurance guide (Form 901)
Send the schedule. I’ll build the layers.
Your statement of values and current property declarations are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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