If you are looking for broad coverage, buy a blanket insurance policy as individual policies are not often customizable. If you do customize, you will have to add a lot of riders and conditions, which will add to the overall cost. Blanket insurance will provide comprehensive coverage, which may not be given by individual policies. As a result, there is no need to buy multiple individual policies. Also, it saves time and is completely easier to manage than multiple individual policies. Despite its advantages, blanket insurance might not be for everyone.
Who needs blanket insurance? Blanket insurance is useful for you if you have multiple properties that require insurance. These can be commercial, residential, or rental properties or a combination of these. Also, if your health insurance requirements are complicated, a blanket policy will be perfect for you. On the other hand, if you don’t have such specific requirements, a blanket insurance policy is unnecessary as it will only be more expensive.
Generally, a case-by-case evaluation is required before a decision to get a blanket policy is made. You can consult an agent, and the agent can help you to customize the coverage based on your requirements. You will also get help in comparing individual policies included in blanket coverage before you choose a plan that’s right for you.
Which are the areas where blanket insurance is used? Blanket insurance is available across multiple insurance areas. These include home and personal property, business, and health.
- Blanket health insurance: These insurance plans are useful when you need to customizations in your health insurance plan. For example, if you have an elderly parent or parents living with you, they are generally not considered as dependents by an individual health plan. In such cases, you can buy a blanket health insurance. These let you include your parents in your health insurance plans. Insurance providers usually have general blanket health insurance policies that you can purchase. With a blanket health policy, you can tailor the insurance plan according to your requirements.
- Blanket business insurance: These insurance policies are usually useful for commercial enterprises, condo homeowner’s associations, restaurant owners, and landlords. For commercial enterprises, it is not feasible to insure each building under an individual policy plan; it is not only costly but also time-consuming. Blanket insurance can cover multiple warehouses and office buildings. Condo homeowners’ associations can use blanket business insurance to cover multiple shared spaces and unit structures. The benefit of using blanket insurance in such cases is that the cost of coverage will remain the same even if the overall value of the property fluctuates. The same advantage is applicable for landlords as well. They can have single-limit blanket insurance for all the individual properties they own. For restaurant owners, blanket insurance can be useful to insure specialty equipment that has to be frequently transported between different locations.
- Blanket homeowners’ insurance: This is one of the most common types of blanket insurance. It offers coverage for your house as well as other detached external structures. Additionally, you get insurance for your personal possessions, which can include collectibles, antiques, and artwork.
What is the cost of blanket insurance? Blanket insurance policies cost more than individual policies, but the extra cost comes with extended coverage. In most cases, blanket insurance costs 10 percent more than an average individual policy. On the other hand, if you want the same coverage from individual insurance that blanket insurance gives, you will have to buy two policies. With blanket insurance, you will be bundling your policies and saving quite a bit.
