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Definition: Blanket Insurance
Blanket Insurance refers to the insurance coverage policy that covers more than one kind of property at multiple locations. Blanket insurance policy also covers non-real estate properties such as mortgage or personal property.
There are two kinds of property insurance policy. One is specific insurance policy and another one is blanket insurance policy. Specific insurance policy covers a single property for a designated purpose. But Blanket Insurance policy insures multiple properties for multiple purpose. It typically insures against all types of loss and liability regarding the insured property like fire, flood, earthquake damage etc.
If one company has two or more manufacturing plants at different locations blanket insurance policy is preferred. There may be a need to transfer heavy equipment from one plant to another plant. That is also protected under blanket insurance cover.
Mutual Fund managers can also use blanket insurance to insure a portfolio of securities from certain losses.