Blanket Insurance

What is Blanket Insurance?

A blanket insurance policy is a single property insurance policy that covers multiple types of property at the same location, the same type of property at multiple locations, or multiple types of property at two or more locations. It covers personal belongings as well as the actual home, "blanketing" all of the homeowners' belongings.

How Blanket Insurance Works

Blanket insurance typically provides a broader range of benefits than a typical individual policy. Although it is more expensive, the additional covered perils frequently make it worthwhile to invest.

In everyday life, blanket insurance is fairly common. Homeowners insurance is a type of blanket insurance that protects both the structure and contents of your home from loss. Blanket policies can provide a single limit for all properties for landlords who own multiple apartment units.

The policy's maximum payout is divided among all of the properties. Meanwhile, franchise owners with multiple fast-food restaurants in different locations can purchase a blanket policy that covers all of their locations under a single policy with a single limit.

Consumers can buy blanket health insurance, but they may need to customize the policy to meet their specific needs. If a person has a living adult parent, they may not be considered a dependent under an individual health plan. Purchase of blanket health coverage, on the other hand, may allow someone to include their parent on their health insurance regardless of tax designation.

Who Needs Blanket Insurance?

Individuals who do not own multiple properties or have complex health insurance needs are unlikely to require a blanket insurance policy. Individual policies, with riders added as needed, will most likely be more cost-effective. A blanket property insurance policy may be ideal for someone who has multiple properties that need to be insured, whether they are residential, rental, or commercial.

Any blanket policy, such as blanket medical insurance, must be evaluated on an individual basis. That is why it is critical for consumers to work with a knowledgeable insurance agent who can tailor a package of coverages to a person's specific needs.

Because blanket insurance is typically 10% more expensive than standard policies, it is critical that someone obtain it only if they require it. Bundling insurance into a blanket policy, on the other hand, can often save money for the right people.