Blanket insurance is an insurance policy which covers more than one property on the same location or same kind of property at different locations or multiple kinds of property at different locations. This insurance also covers personal possessions, the dwelling, and the home owner’s possessions. What is property insurance? Property insurance is divided into two categories blanket and specific. In blanket insurance, the maximum amount that is payable is divided among the damaged properties. If four buildings covered by insurance are destroyed, the insurance pays an amount until the policy is exhausted. If the property is insured under specific insurance, then it is for a single property. For instance, if a property is insured for flooding and if it burns down, then the policy does not cover the damages. The ‘blanket’ insurance offers protection which is very broad and is more than the usual insurance offered to the owner. It is expensive and covers more perils, making it a worthy investment. You need to examine the blanket insurance minutely and also compare it to conventional policies for extra costs. It is a common type of insurance, and a good example of blanket insurance is home insurance which covers the structure of the house and also its contents against loss. For a landlord, a single blanket policy provides a single limit to many apartments with the amount payable being divided among the number of properties. Another good example is a franchise owner who can buy a blanket policy which covers all the stores in a single limit. Benefits of blanket insurance A blanket health policy can also be purchased and the consumer can customize it to meet their needs. For instance, an adult parent staying with you may not be considered a dependent but can be placed on your insurance policy regardless of tax designation. Blanket insurance is just right for those who have many properties including residential, commercial and rental, a blanket policy. Each policy, including blanket policy, is evaluated on a case-to-case basis. You need a knowledgeable agent to customize the package and also explain to him the importance of bundling the insurance into the blanket. Blanket insurance costs 10% more than other policies, and it is given to a person who really needs it. For the right person, it may help him/her save money. Blanket coverage is a term used for business insurance policies; it covers multiple properties which are similar but not located in the same location, for example, a restaurant owner having many franchises in a city. It is purchased to insure and protect non-real estate property like art, personal property, and mortgage investments. In multiple property payouts, the policy can be equal among all or can be set on different limits. Say if three paintings are insured for $300,000, then the limit for each is $100,000. The amount paid is set according to the rate for each property like $75,000 for 3 buildings — $250,000 for the smaller building, while $500,000 for the bigger building. It covers all types of properties and liabilities like fires, loss, theft, floods, and earthquakes damage.
