Blanket Insurance Policy

A blanket insurance policy is one that allows policy holders to take advantage of larger limits than they might have under a single insurance policy. For instance, if a property owner happens to have more than one item that is insured, they can take advantage of an overall insurance limit that applies to all of the properties. A person with two homes may have each of them insured for $1 million. Under a blanket insurance policy, the two properties would be insured for $2 million together. In this scenario, if the property owner wants to file a claim of more than $1 million on one of the properties, they can make that claim. Under a normal policy where the two properties were insured separately, the property owner would be limited to just $1 million in coverage for each of the properties.