What is a blanket coverage in commercial property insurance?

Complete Guide to Blanket Coverage in Commercial Property Insurance

Why This Question Matters for Colorado and Utah Residents

Understanding blanket coverage is crucial for business owners with multiple properties or varied asset types in Colorado and Utah. Regional challenges such as severe hail in Northern Colorado, wildfire risk, and fast growth in both states mean many businesses expand to multiple sites or manage diverse inventory—making flexible coverage essential.

• Severe Weather and Growth: Local hazards, like Colorado's #2 national ranking for hail claims and Utah's rapid business expansion, make property protection across multiple sites critical.
• Efficiency for Multi-Property Owners: Blanket coverage streamlines insurance by combining all covered properties/assets under a single policy limit, reducing administrative hassle and gaps in coverage.
• Cost-Effectiveness: For businesses in high-risk or growing areas (e.g., Denver Tech Center, and Salt Lake's expanding tech corridor), combining locations can lead to better value versus separate scheduled policies.

What Most People Get Wrong

Many assume each property or asset must be listed and insured separately, which can leave coverage gaps or lead to costly oversights, especially if property is moved between locations or temporarily stored offsite.

Another common misconception is that blanket coverage is always more expensive. In fact, for businesses with multiple sites, it can be more affordable and provide more comprehensive protection against regional risks such as hail, wildfire, and theft.

The Complete Picture

A blanket coverage policy sets a single overall insurance limit that applies to a group of properties, locations, or asset types you own or lease. For example, a restaurant group in Fort Collins and Boulder might have a $2 million limit that flexibly covers both buildings and inventory across all sites. During a claim, you’re not constrained by site-specific caps, so you have the flexibility to address even large losses at one location without being underinsured.

Blanket coverage is especially valuable in Colorado and Utah, where severe weather or wildfires can cause unexpected, concentrated losses at one property. Locally, 78% of businesses prefer working with independent agents (like FoCoIns) for this kind of tailored protection. Key takeaways: assess your aggregate risk, ensure your policy includes all properties/asset types you need to protect, and work with a knowledgeable regional expert to avoid hidden exclusions—such as for floods or offsite property—which are especially important after wildfires or in flood-prone regions.

Making the Right Decision for Colorado and Utah Residents

Question 1: Do I have multiple properties or assets in different locations?

If you own or lease several buildings, have inventory stored in multiple cities, or move equipment between sites, blanket coverage may prevent gaps and make loss recovery smoother. Ask yourself:

• Are my buildings or contents in different Colorado or Utah counties?
• Could a single incident (like a hailstorm or fire) impact more than one location at once?

Question 2: How do I value my total risk exposure?

Look beyond individual locations. Add up rebuilding costs, inventory value, and critical equipment across all properties. Ensure your blanket policy limit is high enough to realistically cover a major loss at any one site in today's market—replacement costs in CO and UT can be 20-30% higher than national averages due to regional construction booms and disaster repair surges.

Question 3: Am I accounting for regional weather and regulatory risks?

Colorado's peak hail season (June), wildfire vulnerability, and Utah's flood risks mean your policy should reflect all likely loss scenarios—especially for businesses that grow or change location. Make sure your policy’s wording aligns with regional definitions of “location” and “property type,” and consider endorsements for offsite assets or green rebuilds if sustainability is a priority for your business.