NYC Insurance Blog

Understanding Blanket Insurance Policy

A blanket insurance policy provides coverage to more than one location, type of property, or both. Therefore, instead of buying multiple policies for each item or property, you can buy a single policy to protect your property up to your coverage limit. One example of a blanket insurance policy is a home insurance policy (HO3) because it covers your home and personal property up to a maximum value.

What Does Blank Insurance Cover?

Although blanket insurance policies differ, each policy clearly outlines the things that fall under the blanket policy. Your blanket policy might cover the following:

• Personal property like clothes and business equipment
• Building, for example, a home and the items inside, e.g., electronics and furniture
• Several properties owned by the same company or person
• Personal property in a similar category, for example, jewelry or electronics
• Common areas shared in a homeowners association or condo association 

Who Benefits from a Blanket Insurance?

Blanket insurance benefits homeowners, especially if they are a part of a homeowner’s association (HOA) due to shared spaces. If you live in a condor townhome, the HOA usually includes a portion of blanket insurance fees in your member’s fees to improve your coverage in the event of a loss. For example, if your neighborhood has a playground, tennis court, community center, clubhouse, or park, the HOA blanket would help pay for any repairs.Call our office today for a free quote

Also, businesses operating in multiple locations, for instance, a restaurant franchise, benefit from this policy to protect their business and property against potential financial losses. Typically, the blanket insurance policy provides similar coverage while requiring less time and effort to purchase and manage, unlike individual insurance policies. 

Differentiating Blanket Coverage from Scheduled Personal Property Coverage

Although scheduled personal property increases your personal property limit, it applies to a specific item in a category. For example, if your engagement ring exceeds your policy’s jewelry limit, you can schedule it on your insurance to increase its coverage. However, if you own several expensive pieces of jewelry, it is prudent to purchase blanket jewelry coverage because it is pocket friendly. 

Since blanket insurance provides more coverage, it costs about 10% more than standard homeowners insurance. Consider bundling insurance policies to get a discount from your insurance agent for a cheap deal, Give us a call to help lower your insurance costs!

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