In real estate, a blanket policy refers to an insurance policy that covers multiple properties under a single policy. Blanket policies are often used when a property owner or real estate investor owns multiple similar properties and can be insured under a single policy. Blanket policies can provide cost savings, simplify insurance management, and provide broader coverage than individual policies.

The primary reason blanket policies are so popular among property owners is their cost-saving benefits. Because a single policy covers multiple properties, the insurer may offer a lower premium than if each property were insured under a separate policy. This can be particularly beneficial for real estate investors who own multiple properties and want to keep insurance costs under control.

Another advantage of a blanket policy is that it can simplify insurance management. Rather than keeping track of separate policies for each property, the owner or investor can manage all insurance needs under a single policy, saving time while reducing administrative costs.

Blanket policies can also provide broader coverage than individual policies. For example, if one property suffers a loss that exceeds the coverage limit of its individual policy, the blanket policy may provide additional coverage to help cover the loss. This can provide greater peace of mind for property owners and investors.

It is important to note that while blanket policies can provide cost savings and simplify insurance management, there are also potential drawbacks to consider. For example, if one property experiences a loss, the insurer may reduce coverage for all properties covered under the blanket policy. Additionally, if a property owner or investor wants to sell a property that is covered under a blanket policy, they may need to obtain a release from the insurer to ensure that the property is no longer covered under the policy.

Despite these challenges, a blanket policy is a lucrative insurance option for real estate investors who own multiple properties.