What is Blanket insurance?
Does it insure afghans and snuggies? No of course not, but if you are not an insurance professional, what else would you think?
Blanket Insurance is used as an option on an insurance policy when you need to insure multiple locations with one limit.
simply, if you have 3 buildings that are separate, but have common ownership, or some other commonality, you can have one limit. For example, your 3 buildings are each insured for $100,000. You can blanket the properties and have one single limit of $300,000.
The entire limit can be used for one property, or all three properties.
The advantages are that it is simple, it gives you a higher value at any one location.
The disadvantage is that it is often times used to circumvent insuring all the buildings to their total replacement cost. This would be a bad idea, as the buildings still fall under the coinsurance clause.
If you have multiple locations it is a good idea to look into blanketing the property values. You would be required to do a statement of individual value for each building, and then you would aggregate the values.