Definition
Blanket Coverage is an insurance arrangement that provides protection for multiple items under a single aggregate limit, rather than listing and valuing each item separately. This approach simplifies coverage administration but may provide less certainty about recovery for individual high-value items.
Significance in Alternative Asset Valuation
Blanket coverage can be appropriate for certain alternative asset situations:
Advantages:
- Administrative simplicity: No need to schedule every item individually
- Flexibility: Coverage automatically includes new acquisitions up to the limit
- Cost efficiency: Often lower premiums than scheduling comparable values
- Privacy: Detailed inventories may not be required
Limitations:
- Per-item sublimits: Many blanket policies cap individual item recovery
- Proof burden: Must demonstrate value at time of loss
- Potential disputes: Disagreements over value without pre-agreed amounts
- Underinsurance risk: Total losses may exceed aggregate limits
For serious collectors, blanket coverage often supplements rather than replaces scheduled coverage—protecting lower-value items while high-value pieces receive individual scheduling with agreed values.
How Impossival Approaches This
We help identify which items warrant individual scheduling versus blanket coverage by analyzing values and collection composition. Our valuations support both coverage approaches as appropriate.
Related Concepts
• Scheduled Personal Property - Individual item coverage alternative • Insurance Rider - Policy additions for specific items • Agreed Value Policy - Pre-agreed coverage amounts • Replacement Cost - Coverage basis for replacing items