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Definition

Blanket Insurance

What is Blanket Insurance?

A Blanket Insurance plan is a unique homeowner's insurance that protects several kinds of assets at the same site, much of the same properties at various places, or several assets held at different locations. It covers personal belongings and the actual home, "blanketing" all owners' belongings. 

Understanding Blanket Insurance

Blanket insurance is precious for a company with many sites because assets still are insured regardless of whether they have been relocated.

People who do not own several homes or have complex health coverage requirements are unlikely to require blanket insurance. For example, a landowner with many homes to be insured may opt for blanket coverage. This can be removed by a condominium building.

If you reside in a condo building, you will have an owner’s or condominium policy to protect your house and personal possessions; however, the Homeowners Association (HOA) will require a second plan to save the communal public spaces. Your extra 'blanket coverage' is included in the price of the regular maintenance fees. In this situation, blanket coverage is obtained from the different condo policy, rather than as a replacement for the landowner's insurance scheme.

Practical Example

Most owners will also have blanket insurance at a particular time in life. For example, one may opt to buy a condo with a pool, a gym, and basketball courts. To protect these shared facilities, each condo unit resident must pay a charge, maybe $50 monthly, to pay their half of the blanket insurance coverage. 

If a big storm hits and damages the pool to the extent of dollars, the HOA can file a claim with the insurance company, and the blanket insurance will cover to restore the devastation in such shared facilities.

In Sentences

  • Blanket insurance facilitates risk mitigation for an independent authority that will have to acquire a variety of distinct policies to receive the same protection.

 

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