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🏢 '''Blanket coverage''' is a type of [[Definition:Insurance policy | insurance policy]] structure that protects multiple properties, asset categories, or locations under a single aggregate [[Definition:Sum insured | sum insured]], rather than assigning a separate limit to each individual item. In [[Definition:Commercial insurance | commercial insurance]], this approach is especially common for businesses that own or operate across numerous sites — such as retail chains, warehousing operations, or manufacturers with dispersed facilities — where itemizing every location would be administratively burdensome and could leave gaps if values shift between sites over time.

⚙️ Rather than scheduling each building or asset with its own coverage limit, a blanket policy pools the total insurable value and applies one overarching limit across all covered items. If a [[Definition:Loss | loss]] occurs at any single location, the [[Definition:Insured | insured]] can draw on the full blanket limit, provided the total claim does not exceed it. [[Definition:Underwriting | Underwriters]] typically require a [[Definition:Statement of values (SOV) | statement of values]] that details the locations and their estimated replacement costs, and the [[Definition:Premium | premium]] is calculated against the combined total. Some blanket policies include an [[Definition:Agreed value | agreed value]] or [[Definition:Coinsurance | coinsurance]] clause to ensure the policyholder maintains adequate coverage relative to total asset value, penalizing underreporting at claim time.

💡 For policyholders managing large or fluctuating property portfolios, blanket coverage eliminates the risk that a single location's limit proves insufficient while surplus capacity sits unused elsewhere. It simplifies the renewal process and reduces the administrative overhead of tracking individual limits as assets are acquired, sold, or revalued. From the [[Definition:Insurance carrier | carrier's]] perspective, blanket structures demand rigorous [[Definition:Exposure analysis | exposure analysis]] and robust [[Definition:Aggregation risk | aggregation risk]] controls, particularly when covered locations cluster in [[Definition:Catastrophe zone | catastrophe-prone zones]] where a single event could trigger losses across multiple sites simultaneously.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Scheduled coverage]]
* [[Definition:Statement of values (SOV)]]
* [[Definition:Commercial property insurance]]
* [[Definition:Coinsurance]]
* [[Definition:Sum insured]]
* [[Definition:Aggregation risk]]
{{Div col end}}

Definition:Blanket coverage - Revision history

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