Multiple assets, one policy. It’s almost as cozy at it sounds.
If you’ve heard the term but are not sure what it means or how it applies to you, you’re not alone. Most insurance jargon is confusing for those who don’t work in the field. But as a business owner or someone who owns multiple properties or valuable assets, understanding what blanket insurance is and all that it implies, including limits, is key to getting the right coverage to protect your investments. This quick guide will explain the term and the coverage it provides.
What is blanket insurance?
Before you can begin to understand blanket limits, it’s important to get a handle on what blanket insurance is. Basically, just like it sounds, blanket insurance provides a “blanket” of coverage over more than one property or asset. For example, if you own several smoothie shops in different locations, one blanket policy would cover all of your locations.
How does it work?
With a blanket policy, your coverage would pay out a certain amount for each of the properties or assets covered. So if you had a payout of $100,000 for two of your smoothie shops and only one was destroyed in a fire, your policy would pay out $50,000 (or however much you specified for that location).
What about those limits?
A blanket policy will cover many types of damage, loss or liability. It could be for your business or your personal property and will include events like fire, floods, earthquake and storm damage, theft, personal injuries, etc. When you have a scheduled limit policy, you are able to be very specific in how you want the coverage to be applied and your predetermined amount of coverage is set.
In the example above, if you have a blanket limit of $100,000 for your two properties, and one location is worth more than another, you can set the payouts to be $75,000 and $25,000 or whatever amounts are appropriate to equal the total amount of coverage. So whether you’re insuring artwork, a classic car collection, homes or your business, your limits can be customized to ensure that each asset is covered adequately.
What are the benefits of a blanket policy?
While this type of insurance is not for everyone, if you’re a business owner, you own several rental properties or you have valuable personal property, blanket Insurance does have its advantages. Some of the unique benefits it provides are:
- • Comprehensive coverage
- • Coverage in a single policy instead of multiple policies
- • Ability to customize coverage amounts
Although blanket insurance can be more expensive than individual polices, it offers advantages when it comes to getting coverage for an array of perils under a single policy. If you’re unsure if you would benefit from this type of insurance, talk to your insurance provider or give us a call at 305-648-7070 and we’d be happy to guide you in the right direction. Insuring your business and personal property provides you with an invaluable peace of mind that if an unexpected event occurs, you’ll have the funds you need to repair or replace your property. For more useful insurance tips and information, be sure to browse through the rest of our blog.