Blanket insurance is a type of coverage that protects multiple properties, items or locations under one shared limit, rather than listing each one separately.
Instead of setting a specific coverage amount for each building or item, blanket insurance gives you one broad amount of protection across everything included in the policy.
It’s often used by businesses with multiple properties or homeowners with valuable belongings spread across different locations.
When you buy blanket insurance, your policy sets one overall coverage limit for all the assets you want protected. Insurance companies often require properties to be insured for a percentage of their total replacement cost.
If something happens like fire damage, theft or a major storm, the insurance company pulls from that overall limit to pay claims, no matter which specific location or item was affected. Some blanket policies also cover injuries that happen to your properties.
Example: If you have two rental properties insured under a $1 million blanket policy, you aren’t limited to $500,000 per building. You can use up to the full $1 million where it’s needed most, ensuring that each property is covered for its replacement cost.
Blanket insurance can be a smart choice for:
If you have multiple properties or lots of personal property in different places, blanket insurance can make managing your protection much simpler and more flexible.
Blanket insurance comes in different forms depending on what you’re covering:
Blanket insurance offers several important advantages:
Blanket insurance and scheduled insurance cover property differently:
| Feature | Blanket insurance | Scheduled Insurance |
| Coverage | Covers a group of properties/items under one shared limit | Covers each property/item with its own listed value |
| Flexibility | Very flexible after a loss; funds can go where they’re needed most | Pays only the exact value scheduled for each item |
| Best for | Groups of similar items, like rental units or personal belongings | High-value or one-of-a-kind assets like art or collectibles |
| Cost Efficiency | Can be more affordable than managing multiple policies | May cost more due to detailed itemization |
If you need to protect very specific items, or you want guaranteed payouts for certain losses—scheduled insurance might be a better fit. For broader, simpler coverage, blanket insurance often makes more sense.
Blanket insurance is often used for:
If you have multiple things to protect across locations, blanket coverage can help simplify your insurance.
When you're picking a blanket insurance policy, here’s what to think about:
Anyone listed as an insured party on the policy would be protected. In a business setting, that might include company owners, property managers or stakeholders. In personal situations, it could include homeowners, family members or co-owners of property.
The benefit of blanket insurance is that it offers broader coverage without the need to meticulously insure each individual item or property, providing peace of mind and potential cost savings through the bundling of multiple policies.
No. Homeowners insurance typically covers a single property at one address with a specific limit. It focuses on one home. In contrast, blanket insurance extends coverage across multiple properties under one unified limit, offering broader protection.
Blanket insurance covers multiple properties—or many items—under one shared coverage amount, effectively 'blanketing' the homeowners' coverage needs across different types of properties.
They serve different purposes, but you can sometimes add blanket-style endorsements onto a homeowners policy for extra protection.
Sometimes. Blanket policies can be slightly more expensive because they provide broader protection.
However, they can also be more cost-effective than buying several separate policies—especially if you have many properties or assets. Blanket insurance usually costs about 10% more than buying separate policies.
Yes. Coverage for multiple homes, buildings or even rental units under one blanket policy is one of the most common uses for this type of insurance.
Just make sure each property is properly listed and valued in your policy documents to make sure they meet the insure-to-value requirements.
References:
https://www.trustedchoice.com/business-insurance/coverage-types/blanket-policy/
