Blanket insurance is described as a single insurance policy that covers multiple properties. It can cover one property at a particular location, the same type of properties at a single location, or various types of properties at multiple locations. Blanket insurance also covers personal possessions within the property.
Understanding blanket insurance
Blanket insurance generally provides a wide range of protections compared to traditional individual policies. While it is expensive, the variety of protections that it offers makes it a smart investment. However, one thing does not work for everybody. Hence, it is imperative to understand a blanket insurance policy before buying it. The difference between a blanket insurance policy and traditional single property insurance policies will help you understand what exactly you are gaining for the extra cost.
Blanket insurance is more common in everyday life than most people realize. For example, one type of blanket insurance is home insurance policies. They cover both the house and its contents against loss and unintentional damage. Blanket insurance can be highly beneficial for people owning multiple properties like landlords. The policy offers a single limit for all properties. The maximum amount that has to be paid is divided into parts for every property. Further, people that own multiple restaurants or fast food joints at multiple locations can purchase blanket insurance. They can cover all their outlets under a single policy.
In addition, you can purchase a blanket health insurance. However, everybody has different medical preferences and requirements. Hence, you might have to customize your policy as per your needs. If you have an older parent at home, you might not be able to place them as dependent on individual health insurance. However, blanket insurances allow you to place your parents on your health insurance.
Who does not need blanket insurance?
Blanket insurance is more expensive compared to traditional insurance policies. Hence, it is neither affordable nor necessary for everybody. Any individual that does not fit into the following categories does not need to purchase blanket insurance. These are people who do not have immediate health insurance needs or people who do not own more than one property. Blanket insurance is an ideal option for you if you want to protect multiple properties. These properties can be commercial, residential, or rental.
Blanket insurance policies need to be evaluated based on your needs. This is especially applicable to blanket medical insurances that need to be different for every individual. Hence, it is important that you consult a well-informed insurance agent. He/she can help you in designing a customized insurance package based on your needs.
Blanket insurance policies usually cost 10% higher than traditional policies. Hence, it is important that you do not buy them unless required. However, in some cases, combining existing insurance policies into single blanket insurance can save a lot of money. This proves that while it is not suited for everybody, blanket insurance can be highly beneficial.
