Shared Aggregate versus Per Location Aggregate
What this clause says
The General Aggregate Limit shall apply separately to each location owned or leased by the Named Insured, per the Designated Location General Aggregate Limit endorsement.
What this actually means
A multi-building operator can carry one aggregate shared across the whole portfolio, or a separate aggregate for each location. The difference is what a bad year at one building does to every other building. With a shared aggregate, claims at one facility can exhaust the limits protecting all of them. With a per-location aggregate, each building carries its own annual ceiling.
What it means for an operator
This is the term most likely to be misunderstood at portfolio scale, and landlords are often the ones who catch it. A REIT or private landlord leasing you three buildings frequently requires that the aggregate apply per location, precisely so that a claim at a building it does not own cannot strip the coverage protecting the building it does. If your lease says per location and your policy carries a shared aggregate, you are in breach of the lease from day one of the term, usually without knowing it. Pull the designated location endorsement and confirm it is actually attached rather than merely quoted.
How this evaluates
The Policy Checker applies these rules in order; the first match wins.
aggregate basis equals per-location -> Compliant: A per-location aggregate keeps a bad year at one building from consuming the limits protecting the rest of the portfolio. aggregate basis equals shared -> Gap: One shared aggregate across all locations means claims at a single facility can exhaust the limits protecting every other facility. Most landlord and lender requirements ask for a per-location aggregate. aggregate basis equals per-resident -> Borderline: A per-resident aggregate is an unusual structure. Confirm precisely how it interacts with the per-occurrence limit before relying on it.
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Check this term against your own program.
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Common questions about this clause
- What is the difference between a shared aggregate and a per location aggregate?
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