If you have property insurance, you already know that your protection is limited to the property covered by the policy, such as with homeowners insurance or dwelling insurance. With blanket insurance, you can establish a maximum amount of coverage for multiple buildings as well as personal belongings, all covered by one policy.
If you only own one building or structure, you can opt for a blanket insurance policy. Your blanket insurance covers different types of property within one location. For instance, you may want blanket coverage to protect an office building from damage or complete loss, as well as coverage for the furniture, equipment and electronics inside the building. The maximum payout on your blanket policy can be applied to damage of either type of property.
If you own several buildings or properties, you may choose a blanket insurance policy because it gives you more flexibility in coverage. With blanket insurance, all of your property structures, and your personal property, if you choose, are covered. This way, you can apply the necessary amount of coverage to any damaged or destroyed property, not simply the coverage allotted to a building in particular, and you’re more likely to recover 100 percent of your losses.
If you’re looking to save money on a blanket insurance policy, you may want to look into coinsurance requirements. Since the blanket amount of your insurance can be applied to any of your properties, you will likely never need to pay the actual coinsurance. For instance, if you own four buildings that are all worth $500,000, you need a blanket policy covering $2 million. If you agree to pay 10-percent coinsurance, you’ll only need $1.8 million in coverage. Chances are, you won’t lose all four buildings at once, so you’ll likely always be covered by your $1.8 million maximum.
Some homeowners insurance policies also offer “blanket coverage.” This coverage works the same as other blanket policies, but it only insures structures and personal property associated with your primary residence. This may include your home as well as other structures on the property, such as sheds, detached garages, swimming pools or gazebos. A blanket homeowners policy also covers your personal belongings.
Kristen Radford Price began writing in 2005 for her campus newspaper. She has served as a feature writer for the life-and-style section of the "Daily Herald," a contributor to "Utah Valley Weekly," an editor for a small publishing house and now as director of communications for an Internet company. Radford has a Bachelor of Arts in journalism from Brigham Young University.