Understanding Blanket Insurance: Comprehensive Protection for Your Valuables

Protecting your valuable belongings is a top priority. Whether it’s your jewelry collection, fine arts, or vast sports collectibles, you want assurance that these items are adequately covered. That’s where blanket insurance comes in. This guide will break down what blanket insurance is, how it works, and why it might be the right choice for you.

What is Blanket Insurance?

Blanket insurance, also known as unscheduled personal property coverage, is a type of insurance policy or coverage endorsement that provides coverage for a collection of items under a single limit, rather than listing each item individually. Instead of specifying the value for each piece of jewelry, for example, you have a total coverage limit for your entire collection. This offers a simpler and often more flexible way to insure high-value personal property.

How Does Blanket Insurance Work?

With blanket coverage, you and your insurance agent agree on a total coverage limit for your designated collection of items. This limit represents the maximum amount the insurance company will pay in the event of a covered loss, regardless of the individual value of any single item within the collection.

For instance, you might have a blanket policy with a $50,000 limit for your jewelry. If a theft occurs and some pieces are stolen, the insurance company will reimburse you for the appraised value of the stolen items, up to the $50,000 limit. This is different from scheduled insurance, where each item is listed with a specific insured value.

What Does Blanket Insurance Cover?

Blanket insurance typically covers a wide range of valuable personal property, including:

• Jewelry: Rings, necklaces, bracelets, and watches.
• Fine Art: Paintings, sculptures, antiques, and other art.
• Collectibles: Stamps, coins, sports memorabilia, and other valuable collections.
• Furs: Coats, stoles, and other fur garments.
• Other Valuable Items: Rare musical instruments, designer handbags, and other unique possessions.

It’s important to note that some items may have limitations or require separate appraisals. High-value individual pieces within a collection might need to be specifically scheduled, even within a blanket policy, to ensure adequate coverage.

Benefits of Blanket Insurance:

• Simplicity: Managing one overall limit is easier than scheduling each item individually.
• Flexibility: If one item in your collection appreciates in value, you don’t need to immediately update your policy as long as the total value remains within your coverage limit.
• Comprehensive Coverage: Blanket policies may cover a wider range of perils than a standard homeowners policy which include renters and condo policies. (Forms included HO3-HO4-HO5-HO6)
• Potential Cost Savings: In some cases, blanket coverage can be more cost-effective than scheduling each item separately.

Key Considerations:

• Appraisals: You’ll likely need professional appraisals to determine the value of your collection and establish an appropriate coverage limit. Regularly updating these appraisals is crucial.
• Deductibles: Blanket policies typically have deductibles, just like other types of insurance.
• Limitations: Some items may have specific limitations or require separate scheduling.
• Policy Exclusions: Carefully review the policy to understand what is and isn’t covered.

Working with Hitchings Insurance:

Blanket insurance offers a simplified and flexible way to protect your valuable collections. By understanding how it works and working with a trusted insurance provider like Hitchings Insurance, you can ensure your prized possessions are adequately covered. Contact us today for a consultation, and let us help you find the right blanket insurance policy that fits your needs.