Blanket Insurance

Blanket Insurance

Blanket insurance is a single property insurance policy that covers more than one type of property at the same location, the same kind of property at multiple locations, or multiple kinds or property at two or more locations. Blanket insurance is a single property insurance policy that covers more than one type of property at the same location, the same kind of property at multiple locations, or multiple kinds or property at two or more locations. Individuals who don't own multiple properties, and don't have complicated health insurance needs, probably don’t need a blanket insurance policy. That's why it's important for consumers to work with a knowledgeable insurance agent who can customize a package of coverages that fit unique needs a person might have. Since blanket insurance will typically cost about 10% more than conventional policies, it's important for someone to get it only if they need it. If someone has multiple properties that need to be insured — whether residential, rental, or commercial — a blanket property insurance policy may be ideal.

Blanket Insurance not only covers multiple properties in a single location or the same type of property at multiple locations, and in other situations.

What is Blanket Insurance?

Blanket insurance is a single property insurance policy that covers more than one type of property at the same location, the same kind of property at multiple locations, or multiple kinds or property at two or more locations. It covers personal possessions as well as the actual dwelling, "blanketing" all the homeowners' possessions.

Blanket Insurance not only covers multiple properties in a single location or the same type of property at multiple locations, and in other situations.
This type of insurance also covers personal possessions in a dwelling.
Consumers can purchase and customize blanket health insurance.
Businesses may purchase blanket insurance to cover multiple residential, rental, or commercial properties.
Individuals, unless they have complicated health insurance needs or own multiple homes, may find it less expensive to purchase individual policies and add riders to them.

How Blanket Insurance Works

Blanket insurance usually offers a broader set of protections than a typical individual policy. Although it's more expensive, the additional covered perils often make it worth the investment.

Blanket insurance is fairly common in everyday life. Homeowners insurance is a type of blanket insurance, as it covers both the structure and the contents of your house against loss. For landlords that own multiple apartment units, blanket policies can provide a single limit for all properties.

The maximum amount payable under the policy is divided among all the properties. Meanwhile, franchise owners that own several fast-food restaurants at different locations can buy a blanket policy to cover all their stores under one policy with a single limit.

Consumers can purchase blanket health insurance — although they might need to customize the policy to meet their unique needs. If someone has an adult parent living at home, they may not be considered a dependent under an individual health plan. However, purchasing blanket health coverage may allow someone to place their parent on their health insurance, regardless of tax designation.

It's important to examine a prospective blanket insurance policy closely and compare it to conventional policies to see what you would get for the extra cost.

Who Needs Blanket Insurance?

Individuals who don't own multiple properties, and don't have complicated health insurance needs, probably don’t need a blanket insurance policy. It will probably be more cost-effective to pursue individual policies and add riders as necessary. If someone has multiple properties that need to be insured — whether residential, rental, or commercial — a blanket property insurance policy may be ideal.

Any type of blanket policy, such as blanket medical insurance, needs to be evaluated on a case-by-case basis. That's why it's important for consumers to work with a knowledgeable insurance agent who can customize a package of coverages that fit unique needs a person might have.

Since blanket insurance will typically cost about 10% more than conventional policies, it's important for someone to get it only if they need it. However, for the right people, bundling insurance into a blanket policy can often save money.

Related terms:

All Risks

"All risks" refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. read more

Common Policy Declarations

Common policy declarations contain the basic information that defines an insurance policy, such as the amount of coverage, premium, and policy terms. read more

Homeowners Insurance

Homeowners insurance covers losses and damage to an owner's residence, furnishings, and other possessions, as well as providing liability protection.. read more

Landlord

A landlord is a person or entity who owns real estate for rent or lease to a tenant. Learn how landlords make money and what they can and cannot do. read more

Life Insurance Guide to Policies and Companies

Life insurance is a contract in which an insurer, in exchange for a premium, guarantees payment to an insured’s beneficiaries when the insured dies. read more

Personal Lines Insurance

Personal lines insurance includes property and casualty insurance products that protect individuals from losses they couldn’t cover on their own. read more

Personal Property

Personal property is a class of property that can include any type of asset other than real estate. read more

Property Insurance

Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft. read more