Blanket Policy

What Does Blanket Policy Mean?

A blanket policy is a type of property insurance that provides coverage for multiple types of property at a single location, the same type of property across multiple locations, or various types of property at multiple locations. This policy allows the policyholder to broaden the coverage provided by a standard homeowner’s policy.

Insuranceopedia Explains Blanket Policy

For example, blanket coverage may enable a homeowner to protect specific personal belongings or other items not covered by a standard homeowner’s policy. Personal property floaters work similarly but cover individual items at agreed values, while a blanket policy uses one combined limit. It may also extend coverage to particular types of property, such as furniture, located both within the home and in an off-site storage unit. Most standard policies cap how much they pay for property kept off-premises, so it helps to know whether homeowners insurance covers storage units before deciding how broad a blanket policy you need. Since a blanket policy provides supplementary coverage, it must be added to an existing homeowner’s policy. Insurers vary in how they price these endorsements, so the underlying carrier matters when shopping for the best homeowners insurance.