Definition of Blanket Insurance
Blanket insurance encompasses a wider range of risks than standard insurance coverage. When used to describe a type of homeowner's coverage, blanket insurance covers all buildings on a property and may include damage, such as from flooding, that is not routinely covered.
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Significance
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Homeowners generally have standard insurance, but can opt for riders or options to cover computer equipment, sewer or drain backups and a home business. Under a blanket insurance policy, everything is included.
Terms
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Specific coverage is outlined in the policy. This allows the homeowner to include or exclude items as needed.
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Conditions
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As with any insurance policy, conditions, including rules of conduct, duties and obligations, are spelled out.
Premiums
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Blanket insurance premiums are higher, because more conditions are included than with a standard policy. However, blanket insurance can prove to be more cost-effective than having two separate policies written.
Other Insurance
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Additional properties can be included in blanket insurance. Blanket insurance can be written to include other insurance coverage such as health care and business operations.
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References
Resources
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