Blanket Insurance Policy Vs. Umbrella Liability Coverage

Both personal umbrella liability coverage and blanket insurance policy provide a lot of benefits to the insured especially when used at the right time. While blanket policy covers one or more broad classes of people or property, personal umbrella policy is only for liability.

What is Blanket Insurance Policy?
Blanket coverage is a property insurance that covers multiple properties at multiple locations in one policy for a single amount of insurance. Blanket insurance covers one or more broad classes of person or property, without identifying the specific subjects of insurance in the contract. With property, blanket coverage may be an individual home insurance covering both the contents and the actual structures that are found on the property. Blanket insurance is also available for neighborhoods where the coverage extends to any property that is jointly held by the community, through a homeowner’s association. With blanket health insurance, the contract will usually cover classes of people that are not specifically addressed in the terms of the contract.

What is Umbrella Liability Coverage?
Personal umbrella policy coverage is a liability insurance that protects the personal assets and future income of the insured in addition to his or her primary policies. Umbrella liability policy coverage serves as an extra layer of insurance that can pay for medical, court, or other personal expenses, acting as excess coverage over the limits. Therefore, a personal liability umbrella can become the primary policy “on the risk” in certain situations. The term “umbrella” is used because it supplements basic liability coverage from all policies underneath it, such as auto insurance and homeowner’s insurance policies.

Basically, blanket policy pays for the insured while umbrella policy coverage does not do so and instead pays a third party. Also, blanket policy is used for businesses having more than one location, referring to a whole category of things. Personal liability umbrella is particularly useful when the assets you own require protection at a time when someone sues you. It may also provide coverage for claims that may be excluded by the primary policies.

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