Blanket insurance is any type of insurance coverage in which a wider range of items or situations is covered under the terms of the policy. Single policy coverage like this can be found with different options for health insurance, homeowner’s insurance and even with some types of business insurance. While costing more than other types of coverage, a blanket insurance policy ultimately makes it possible to be prepared for more situations, without the need to set up multiple policies.
With property, blanket insurance may come in the form of individual home insurance. When this is the case, the terms of the policy tend to cover both the contents and the actual structures that are found on the property. This often includes both items that are specifically named in the provisions of the contract, as well as any other items that are housed in the main structure or any ancillary structure on the property, such as a garage or storage building. Many policies of this type will also cover fixtures like wiring and plumbing, as well as provide protection in a wide range of natural disasters, like flooding or wind damage form hurricanes or tornadoes.
Blanket insurance is also available for neighborhoods. Here, the insurance coverage extends to any property that is jointly held by the community, via a homeowner’s association or a similar co-operative group. With this type of coverage, the homes owned by the people who live in the neighborhood are usually not included; only the areas considered to be owned in common are protected.
With blanket health insurance, the contract will usually cover classes of people that are not specifically addressed in the terms of the contract. While not readily available in every country around the world, this approach to health coverage makes it easier for policyholders to cover individuals living within their home for a period of time. This would include relatives who would be considered residents of the home but not dependants of the primary policyholder. In nations where adult children are increasingly becoming the primary caregivers to parents and other older relatives, this type of coverage can be extremely beneficial.
In all forms, blanket insurance is about providing a broader scope of coverage than is found with other types of insurance coverage. While the terms and conditions may vary somewhat, the degree of coverage found with these blanket policies would often require two or more other policies in order to obtain the same level of protection. When this factor is considered, the higher premium paid for the single policy tends to appear much more cost-effective.