What is Blanket Insurance? What does the policy cover? This is a policy that offers additional coverage for varieties of assets and locations that might interest you. If you need an insurance policy that offers a wide range of protection then you should consider blanket coverage.
As you read through this article, you will know more about this insurance, its coverage span, and other terms related to it.
What is Blanket Insurance
Blanket insurance coverage is a single insurance policy that covers varieties of properties. Similar to its name, it covers several properties and locations. This includes residential and commercial properties.
Additionally, the blanket policy offers coverage for personal possessions in your properties. All this coverage is provided within one limit of an insurance policy.
Blanket Insurance Example
If a company owns multiple assets that are all under the blanket limit of coverage. Then it happens that one of the properties suffers a loss that is above its net worth. The loss will be covered by the policy. This is because the “blanket” will spread to cover the loss of that asset.
The policy covers residential buildings. It also ensures the personal belongings that are found in them. This might include furniture and pieces of jewellery.
In the case of peril such as a flood or attack by burglars, the whole cost of everything lost will be compensated. This includes the building itself and the properties inside under the blanket.
How Does Blanket Insurance Work?
As earlier explained, when you purchase a policy like this, for your property such as your residence, it covers the building. In addition, the policy also protects certain personal belongings.
Unlike other individual insurance policies, this policy offers a wider range of protection. It allows both homeowners and owners of multiple business properties to bundle all their locations and properties under a single coverage limit. This makes it easier for them to manage risks. Interestingly, it covers all the fixed and current assets under the same premium.
Although it is more expensive than most individual policies, you might want to consider it because of its additional coverage benefits.
Who Needs Blanket Insurance?
The insurance policy can be a good option for homeowners and people who have multiple related business properties. It helps them bundle all their properties into one limit. It is more convenient to cover all the risk that threatens properties without stress. It might also save money for this set of people.
However, blanket insurance is not needed by everyone. Individuals who do not own multiple properties do not necessarily need to purchase the policy. They might find it less costly to purchase individual policies. This is because blanket coverage is more expensive than most individual policies.
What is Blanket Amount?
The blanket Amount is the total of properties that an insured person has agreed to be covered by the blanket policy. This includes fixed and current properties. However, you will have to get detailed information about the policy before applying for coverage.
What is Blanket Jewelry Coverage?
Blanket jewellery coverage for renters is the coverage blanket insurance policy offers renters. It allows you coverage for jewellery separately from personal properties. Although other homeowners’ insurance policy offers jewellery coverage, this one is very considerable.
It is an insurance policy that offers high coverage limit. Therefore, it covers a lot of perils, that several other policies do not. It also offers a high endorsement in the event of a loss.
What is Blanket Insurance Condo?
It is an insurance policy that covers several areas in a condominium. In a neighbourhood, there are certain areas that some insurance policies do not protect. However, blanket insurance condo covers those areas from theft damages and other perils.
Therefore, the homeowners’ association takes this coverage policy and all homeowners pay their premiums when due. The policy is designed to enhance personal insurance policies. It aims to protect the areas where you have a financial interest.
What is Blanket Insurance Limit?
A blanket limit is a single insurance limit that allows all varieties of properties to be bundled into one category. It also groups together different locations into a single category. This allows the person taking the insurance policy to easily manage risks and costs.
What is Scheduled Coverage?
A scheduled coverage is provided by an insurance policy to cover different properties. However, this coverage is limited to the items specifically included in the policy. When an item is excluded from the list, it does not cover it when there is a loss.
Blanket Coverage vs Scheduled Coverage
When you purchase blanket insurance coverage let’s say for your residence, it covers the building and personal possessions in it. It also offers a limit per item. However, its coverage is high.
You do not need to seek appraisals for each item. It also reduces the amount you are supposed when a risk occurs as its “blankets” losses in perils.
However, scheduling insurance coverage is quite different. When you want to schedule coverage with an insurer, you will be required to provide a list of the valuables.
Also, the values of each property are provided. It requires assessment. Additionally, each item is insured separately with their values stated. When there is a loss under a peril that is protected, you will only be compensated according to the agreed value on the policy.
Is Blanket Insurance the same as Umbrella Insurance?
These two insurance policies are different. An umbrella is a form of liability insurance that protects personal liability issues. It offers a wider coverage span than some other policies do. Also, it provides coverage for injuries and properties in case of a risk.
In addition, umbrella coverage may provide coverage when your other policies’ limits are exceeded. Also, claims excluded from other liability policies may be approved.
However, an umbrella cannot cover items outside all general liability policies. Hence, blanket coverage is for properties and umbrella insurance, for liabilities.
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