What Is Blanket Coverage Insurance?

Property insurance policies consist of many limits, and each of them is applied to each location. In lieu of scheduling each limit and location independently, a blanket property policy utilizes one limit for all coverages and locations.

Coverage Types

The building coverage on a property policy reimburses damages to or loss of the entire building. Personal property coverage pays for loss or damage to items within the building that are not permanently affixed. Business income coverage reimburses loss of income as a result of the loss.

Scheduled Limits

Each of the coverage sections has its own scheduled limit. If an insured party has multiple locations insured, the loss limits will also apply differently to each location.

Blanket Limits

Instead of scheduling each coverage for each location, the insured can arrange for coverage that will apply to all locations and to all coverage types, known as a blanket limit.

Common Use

Insureds that have multiple locations and personal property values that regularly change are well-suited for blanket property insurance. The blanket limit will eliminate the potential of a coverage gap due to wrongly scheduled property.

Cost Savings

Blanket property insurance can save the insured on premiums when efficiently calculating the total limit required compared with purchasing separate limits.

References

• International Risk Management Institute: Glossary
• Adjusting Today

Resources

• Rough Notes