What Is Blanket Cover Home Insurance?

(Get answers from an expert.)
Written by Maggie Tiede
Written by Maggie Tiede

Maggie Tiede is a writer and blogger based in Saint Paul, Minnesota. Maggie has worked as a freelance writer since 2013, when she began reporting on politics, local events, health, and human interest for the Grand Rapids Herald-Review.

paul martin Reviewed by Paul Martin
paul martin
Reviewed by Paul Martin

Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.


Popular Questions

What is blanket cover home insurance?
What does blanket cover home insurance cover?
How much does blanket cover home insurance cost?
Do I need blanket cover home insurance?
Expert(s) Found on this Page

Q: What is Blanket Cover Home Insurance?

A: I keep seeing the term “blanket cover” while shopping for homeowners insurance. What does it mean? Can you explain what blanket cover home insurance is?

Blanket cover insurance simply means insurance that covers more than one type or location of property. All homeowners insurance is designed using the blanket cover insurance model. That means that all homeowners insurance is blanket cover home insurance.

Blanket cover home insurance can be designed to cover multiple types of property in your home (for example, the structure of your home and the belongings in it). It can also be designed to cover multiple homes or properties.

What Does Blanket Cover Home Insurance Cover?

Does blanket cover home insurance cover more stuff than homeowners insurance? Does it cover less? I’m not sure which I should get. Help!

First and foremost, blanket cover home insurance and homeowners insurance mean the same thing. All homeowners insurance is a type of blanket cover home insurance. So there’s no need to worry about making the wrong choice!

Now, let’s talk about what it can do. Blanket cover home insurance (a.k.a. all homeowners insurance) can:

  • Cover multiple types of property
  • Cover multiple property locations

Let’s break this down a little further.

The most common way blanket cover home insurance works is by covering two different types of property: the structure of your home and the belongings in your home. These types of property face different types of risk.

It’s not likely that someone could steal your entire home, but they might be able to steal your super-cool stamp collection. By the same token, that stamp collection isn’t likely to face the same wind and storm damage that your roof or siding does.

The risks may be different, but for convenience, insurance companies have bundled them together under one blanket cover. That’s what homeowners insurance is.

If you have two or more homes, then blanket cover home insurance can extend even further. If you insure all the homes under one home policy, all sorts of different types of property and risks are being covered. This is also blanket cover home insurance.

How Much Does Blanket Cover Home Insurance Cost?

What do I need to budget for blanket cover home insurance? Does it cost more than homeowners insurance?

Blanket cover home insurance costs the same as homeowners insurance, because they’re the same thing. Blanket cover home insurance doesn’t cost any more to get. Instead, the cost of your homeowners insurance will be based on the value of your property and the risks it faces.

For most people, homeowners insurance costs somewhere between hundreds of dollars to thousands of dollars per year. Homeowners insurance for multiple high-value homes could cost tens of thousands or even hundreds of thousands of dollars per year.

If you’re worried about the cost of homeowners insurance, be sure to talk to an independent insurance agent. They can help you find discounts. They can also help you understand the finer points of blanket cover home insurance and what it means for you.

Do I Need Blanket Cover Home Insurance?

Why is blanket cover home insurance important? I’m not sure if paying the premiums is worth the money. Do I really need blanket cover home insurance?

Paying premiums can be inconvenient, but yes, you almost certainly do need blanket cover home insurance. Buying a homeowners insurance policy is a smart financial decision. It can even be required in many cases.

First, unless you own your home (or homes) outright, most banks will require you to carry homeowners insurance. They want you to be able to make payments even if disaster strikes your home. Homeowners insurance helps you keep up with your mortgage while you rebuild.

Second, even if you do own everything outright, homeowners insurance still protects you from financial catastrophe. Few people have the cash on hand required to replace all their belongings and rebuild their home at a moment’s notice.

Unless you do have that kind of money (and good for you if you do!), blanket cover home insurance is there to keep you from being bankrupted in case of theft, natural disaster, fire or other devastating scenarios.

If you’re still unsure how blanket cover home insurance could affect your situation specifically, be sure to speak to an independent insurance agent. They’re experts who can help you bust through the red tape and jargon to find the answer that’s right for you. Good luck!

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