A blanket insurance policy refers to insurance plans for two or multiple buildings, people, vehicles and more, which are done within a single agreement.
This means one insurance policy that has coverage for two or multiple properties at the same locations or the same type of property at various locations, or multiple property types at two or multiple locations. It also offers coverage for personal belongings and the actual residence. These plans have wider protection clauses as compared to conventional and individual insurance policies. Sometimes, individuals may find it more affordable to buy a blanket policy instead of buying multiple policies for multiple reasons and adding more riders. Businesses and companies may purchase blanket insurance for covering multiple commercial, residential, or rental properties that they own. The maximum payable amount for these policies will be divided amongst all the property units. Brands/franchisees can also opt for blanket insurance policies to cover all their franchises and store locations.
Sometimes home owners’ associations or societies take blanket insurance policies for covering things like theft, damages, natural calamities, etc. The premiums are divided amongst all home owners or residents in the area or building complex.
