Resources & Insights

The Advantages of Family Blanket Property Insurance

March 1, 2016
Mike Rosser
By Mike Rosser, CCIG Insurance Advisor

Do your clients own multiple properties and ever-changing assets across the country?

Blanket property insurance is a traditional commercial program more and more often being adopted for families. It provides a broad solution for risk management challenges commonly faced by ultra-high-net-worth families.

Families and family offices often deal with family members who use different insurance agents and carriers for different properties across state lines. Their assets change constantly. They don’t consult each other about policies. That can create coverage gaps and policy cancellations.

A key advantage to blanket programs — and where they get their name — is the ability to set one coverage limit that “blankets” all properties to be insured. Individuals and families with multiple homes in multiple states with an aggregate replacement cost of $25 million (dwelling value) or more benefit the most from blanket property programs, according to Chubb.

Why pull the driver out on a Par 3, if you only need a 9-iron?

Unlike standard policies, blanket property programs aren’t limited to “off-the-shelf” coverages, deductibles and services. Policy language and services can be customized specifically for the needs of the family.

That flexibility means the pricing and terms of a blanket program can be based on the family’s unique risk profile. It is often more cost-effective because it eliminates overlapping coverages on multiple policies.

In a nutshell, blanket policies offer families (on a per-event basis):

  • Flexibility. Policy language and service standards can be customized specifically for the needs of the family.
  • Ease of Billing. It can be broken out by property, family member, or LLC/Trust owner.
  • Consolidation.  STOP filing in the insurance junk-drawer. Consolidate family portfolio’s into one clean program. This approach often reduces multi-generational family policies from 30+ (and more bills) to a simple 5-10 (and fewer bills).
  • Consistency. The ability to customize means that the insurance broker and the family can get greater consistency across state lines.
  • Account-based Underwriting. A blanket policy is based on the unique risk profile of the family’s homes, assets and lifestyle.
  • Intelligent Coverage.  New advancements in data analytics allow carriers to model which residence is most likely to experience the “Largest Loss” in a portfolio. Typically the highest probable loss will come from the largest home, or a home in a catastrophe-prone area (Florida coastal, California Earthquake or Brushfire).
  • Comprehensive and Clean LLC and Trust coverage to match your planning structure and goals.
    Retained Risk. With a blanket program, the broker and family can evaluate the potential savings associated with deductibles that are higher or aggregated among all properties.

Mike Rosser leads the Private Client practice at CCIG.

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