Blanket vs. Scheduled Coverage for Personal Property

Submitted by Pike Mutual on Mon, 02/08/2021 - 8:00am
signing insurance papers

Insurance is similar to other specialized industries in that it makes use of terminology that might not convey its actual meaning upon first hearing it. “Blanket coverage” and “scheduled coverage” are two such examples of these terms. It might seem upon first hearing that one is taking out a policy on their grandma’s quilt, or that they are only insuring themselves for certain hours of the day. Thankfully, the actual definitions are a little different than that, though not too difficult to understand by any means. Blanket coverage is when a broad range of items is covered, or “blanketed” under the terms of the policy. Scheduled Coverage allows you to insure specific items for a specific amount.

Highlights of Blanket Coverage

One of the major benefits of blanket coverage is that unlisted assets can still be covered in the event of a claim. For instance, if a farmer has a blanket policy on their farm, it covers the farmer’s entire inventory as a whole. If they recently purchased a tractor, but did not call the insurance company to add it to their policy, that is not a problem under a blanket policy. However, the limit of coverage must be adequate to satisfy any co-insurance provisions in the policy. Keeping this limit updated on an annual basis will solve this issue.

Highlights of Scheduled Coverage

Scheduled coverage lets you choose only specific items that you want to cover and choose a specific amount of insurance for each. For this reason, it can be less expensive than blanket insurance. Scheduled coverage is ideal for insuring newer, high-value equipment to satisfy a lender’s need to have clarity of intended coverage.

Wading through the options of your insurance policy shouldn’t be a chore. Contact one of our independent agents today to learn more about your coverage options and how they can benefit you.