Covering It All: What Is a Blanket Insurance Policy?

As the Texas weather starts to cool down, we’re all reaching for an extra blanket to stay warm. But there’s another kind of blanket that can bring comfort in a different way: blanket insurance. It helps keep your property and assets protected under one big, cozy layer of coverage.

At Rollo Insurance, we often recommend blanket coverage to Texans who want to simplify their insurance while maximizing protection when the unexpected happens.

What Is a Blanket Insurance Policy?

A blanket insurance policy is a single policy that covers multiple items, locations, or types of property under one combined limit.

The term “blanket” paints the right picture. It’s one big layer of coverage that protects everything underneath without assigning separate limits to each item or building.

How Blanket Limits Are Applied

• Multiple Locations: Covers the same type of property, such as several buildings or restaurants, at different addresses.
• Multiple Property Types at One Location: Covers both a building and the business personal property inside it under one total limit.
• Multiple Items or Equipment: Covers a group of similar assets, such as all farm equipment or a jewelry collection.

Blanket vs. Scheduled (Specific) Limits

The difference between blanket and scheduled coverage is an important one to understand.

A blanket limit combines all of your covered assets under one total limit. That means if one property or piece of equipment experiences a larger loss than expected, you can use funds from that same limit to cover it. It’s flexible and can help cushion unexpected losses.

A scheduled limit, on the other hand, assigns a specific amount of insurance to each individual asset or location. That means coverage is capped at that specific value. If one property is undervalued, you could face a shortfall, even if another property has plenty of unused coverage.

Blanket coverage is often best for people with multiple locations, inventory that moves between sites, or large collections of similar items. Scheduled coverage works well for single-location risks or one-of-a-kind, high-value items like fine art.

How Blanket Coverage Works in Real Life

Imagine you own three buildings, each valued at one million dollars.

Scenario 1: Scheduled Coverage

You insure each building for one million dollars. If a fire causes one and a half million dollars in damage to one building, the insurer pays one million, and you’re responsible for the remaining five hundred thousand.

Scenario 2: Blanket Coverage

You buy one policy for three million dollars covering all three buildings. If that same fire causes one and a half million in damage, the entire amount can be paid from your total blanket limit. The coverage “floats” to wherever it’s needed most.

Key Benefits of Blanket Coverage

• Flexibility and Shock Absorption: Your total limit can be applied where the biggest loss occurs, helping you recover faster.
• Simplified Management: One policy, one renewal, one total value to track. It’s much easier than juggling multiple policies.
• Coinsurance Cushion: Blanket coverage can help reduce the risk of coinsurance penalties if values shift.
• Coverage for Moving Assets: If your inventory or equipment moves between locations, blanket coverage moves with it.

Who Needs Blanket Insurance in Texas?

• Commercial Real Estate Owners with multiple buildings.
• Retail or Franchise Chains managing assets across several storefronts.
• Farmers and Ranchers with a mix of barns, machinery, and outbuildings.
• Car Dealerships with large inventories.
• Collectors with valuable items like jewelry, art, or antiques.

Is Blanket Insurance the Same as a BOP?

Not quite. Blanket insurance isn’t a separate type of policy. It’s a coverage option that you can add to your property insurance.

A Business Owner’s Policy, or BOP, combines general liability, commercial property, and business interruption coverage. Blanket limits apply to the property portion of that policy or to your commercial package policy.

The Cost and the Margin Clause

Blanket insurance can cost more than a scheduled policy because it offers greater flexibility. Many insurers include a Margin Clause, which limits payouts to a certain percentage of your declared values. This prevents major gaps between insured and actual values. Keeping your property values up to date ensures you’re always properly protected.

Secure Your Portfolio with Rollo Insurance

When the temperatures drop, you reach for a blanket to stay warm. When life brings uncertainty, blanket insurance can help keep your business covered.

At Rollo Insurance, we help Texas business owners and property managers find the right balance between simplicity and security. Contact us today to learn how blanket coverage can help protect everything you’ve built, all under one comforting layer of protection.