Blanket Insurance: Single policy for more than one property

Blanket Mortgage Insurance Policy is a single insurance policy that insures more than one piece of property (which act as the collateral for a blanket mortgage loan) at a specific location. The blanket insurance policy includes one or more classes of persons or property without identifying each of the subjects that require the insurance coverage. Through this policy, no single item is assigned a certain amount of insurance. Rather, coverage under this policy includes the total amount of insurance for the entire quantity of land occupied by all the properties.

Example: John owns a property (that is purchased with a mortgage loan) in New Jersey along with a car, washing machine, television and refrigerator for his house. Then he purchased a blanket insurance policy that included all the items under a maximum allowable limit.

A blanket mortgage insurance policy offers coverage under a single limit for the following:

• Two or greater number of items (Building and/or contents)
  
  
• Two locations or more than that (Location X and/or Location Y)
  
  
• A combination of items as well as locations.

The properties eligible for blanket insurance policy are:

• Residential:
  These include 1-4 family dwellings, owner or tenant occupied dwellings, seasonal or vacant properties and mobile homes.
  
  
• Commercial:
  Such properties include occupied or vacant commercial buildings, residential dwellings with more than four families, apartments, office buildings and other commercial properties.

The policy however, does not include damages on the properties due to flood and earthquakes.

Policy Coverage:

• For residential properties:
  This kind of a policy provides the dwelling coverage for residential properties. There is also the Replacement or Repair Cost Loss Settlement Provision. The coverage is often written for the last known insured amount or the outstanding loan balance in case a blanket mortgage is involved here.
  
  
• For commercial properties:
  The coverage in this case includes the "Actual Cash Value" Loss Settlement Provisions Coverage which is written for the last known insured amount or the outstanding mortgage loan balance.

The coverage limit varies from one insurance company to other. However, limits higher than the allowable amount are available upon request. The coverage usually extends over a time period of 1 year.