Blanket Coverage

Blanket coverage or a blanket policy usually refers to amount of insurance specified to apply to a number of items under one all-inclusive amount of insurance.

An example is 10 farm buildings, valued at $10,000 each, could be insured as 10 separate items or possibly $100,000 blanket on the 10 items. The concern is that the blanket amount is set yet the buildings could appreciate in value. If there is a claim that included all the buildings, would there be enough insurance fund to pay out the claim?

The rate is usually lower with the blanket form but the coverage can be limited to Actual Cash Value. To gain Replacement Cost you would likely have to schedule the items and be sure to insure each building for reconstruction cost.

Discuss options available to you with your agent, broker or risk manager. Turners Tips recommends that you take control of your insurance.