What Is a Blanket Insurance Policy?
When it comes to protecting your business, property, and assets, one thing is crystal clear – you need the right insurance coverage. One option that’s often considered is a blanket insurance policy. Sounds simple enough, but many people who end up buying one of these policies don’t get how it all works – or how it can come back to haunt you down the line after an accident, loss, or injury. That’s why the Kansas personal injury attorneys at Patterson Legal Group are here with the info you need on what a blanket insurance policy is.
What Is a Blanket Insurance Policy?
A blanket insurance policy is a type of insurance deal that’s good for covering multiple properties, property locations, and other types of assets all together—rather than assigning separate coverage limits to each individual item.
So instead of having an insurance policy that says one piece of your personal property is covered for $500,000 and another for $750,000, a blanket policy might cover you for a total of $1.25 million, which you can use wherever you need it.
This way of doing things gives you a lot more flexibility and can also help prevent you from being underinsured if one location or asset gets hit by something significant.
How Does This Policy Work?
Under a blanket insurance policy:
- All the covered items are thrown in together and share one combined coverage limit
- You don’t need to go to the trouble of allocating an exact value to each individual property (although that might be worth looking into)
- You can use the full limit if you need to cover property damage or a loss involving any of the insured properties or assets
What Types of Coverage Use Blanket Policies?
A blanket insurance policy is often used for:
- Homeowners
- Commercial property insurance
- Personal business property coverage
- Inland marine insurance
- Business interruption coverage
- Liability coverage for multiple locations
It’s particularly popular among businesses with multiple locations or who are always buying and selling assets and therefore changing their total asset value.
Why a Blanket Insurance Policy Might Be the Right Choice
1. Better Protection Against Underinsurance
If the value of one of your buildings or personal structures suddenly skyrockets or one of your assets gets hit by a really big loss, the blanket policy will make sure you have enough coverage to deal with it.
2. Easier Management
With one policy to deal with rather than a bunch of separate ones, blanket coverage can simplify your life and get rid of a lot of unnecessary paperwork.
3. Flexibility for Growing Businesses
As a business expands and buys up new assets or moves to new locations, a blanket policy usually adapts a lot more easily than a scheduled one.
4. Potential Savings
Insurers tend to see blanket policies as lower risk for underinsurance disputes, so the premiums might be lower than if you had separate policies for each item.
Potential Drawbacks to Consider
While a blanket insurance policy can be a great choice, it’s not perfect for every situation.
Higher Initial Coverage Limits
To make sure you’re properly protected, you’ll probably need to have a pretty high total coverage limit—which can be a bit pricey.
Co-Insurance Requirements
A lot of blanket policies come with co-insurance clauses, which can be a hassle if you get the total insured value wrong. If that happens, the insurer might cut your payout after a claim.
Not Ideal For Single Assets
If you own just one major property or asset, a blanket policy probably won’t give you much more protection than traditional coverage.
We’re Here With The Info You Need on a Blanket Insurance Policy
Here at Patterson Legal Group, we’re here to give you the information you need on what a blanket insurance policy is. We’re also here for you if you’re dealing with the claims process after a loss. Our dedicated team of litigators and trial lawyers has a proven track record of success in securing compensation for those in Kansas, as well as in Missouri, Oklahoma, and Colorado. We will fight for you every step of the way.
Get started today with a free consultation by calling us at 888-687-2400 or going online through our secure contact form. You can also connect with our LiveChat representatives. We work under a “No Win, No Fee” promise, so you won’t pay anything unless we win. Reach out today and take the first step towards the money you deserve.
