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🏢 '''Blanket insurance''' is a form of [[Definition:Property insurance | property insurance]] that covers multiple properties, locations, or categories of assets under a single [[Definition:Sum insured | sum insured]] rather than assigning individual limits to each item or site. In the insurance industry, this structure is commonly used in [[Definition:Commercial property insurance | commercial property]] programs where a business operates across numerous locations — such as a retail chain, a real estate portfolio, or a manufacturing company with several plants — and prefers the flexibility of one aggregate limit that can respond to a loss at any covered location without the constraint of per-site sub-limits.

🔄 Under a blanket policy, the [[Definition:Insurance carrier | insurer]] provides a single coverage limit that applies across all scheduled properties or asset classes. If a loss occurs at one location, the full blanket limit is available to cover it, up to the policy maximum — whereas under a specific or scheduled policy, recovery would be capped at the individual limit assigned to that particular property. This flexibility comes with underwriting considerations: the insurer must carefully evaluate the aggregate [[Definition:Total insurable value (TIV) | total insurable value]] across all locations and the risk of a single catastrophic event affecting multiple sites simultaneously, which is particularly relevant in regions exposed to [[Definition:Catastrophe risk | catastrophe perils]] like hurricanes, earthquakes, or floods. [[Definition:Coinsurance | Coinsurance]] provisions or [[Definition:Margin clause | margin clauses]] are frequently embedded in blanket policies to ensure that the policyholder maintains adequate coverage relative to the total values at risk; failure to meet these thresholds can result in penalty at the time of a claim.

🛡️ Blanket coverage simplifies administration for large or complex accounts and reduces the risk that a single property is inadvertently underinsured — a common problem when values fluctuate or new locations are added during the policy term. For [[Definition:Insurance broker | brokers]] structuring programs for multi-location clients, blanket insurance offers a cleaner approach than managing dozens of individual schedules, and many carriers in the U.S., UK, and Asian markets offer it as a standard option in their commercial property forms. However, the convenience of a blanket limit does not eliminate the need for rigorous [[Definition:Statement of values | statement of values]] reporting; insurers rely on accurate, up-to-date property valuations to price blanket coverage appropriately and to manage their [[Definition:Probable maximum loss (PML) | probable maximum loss]] accumulations across their portfolio.

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

Definition:Blanket insurance - Revision history

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