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The definition of blanket cover insurance

You might assume that blanket cover insurance simply means insurance that will shield you in case of the loss of your possessions. To an extent that's correct, but whether that's wholly right depends on the details -- so it's best to look carefully to make sure you're protected if the worst comes to the worst and you have to make a claim.


Blanket cover insurance is a catch-all term insurers use to mean a policy that covers you for up to a specified amount of money for each and every instance of the loss or theft of a type of item. It could be anything from the whole contents of your house or flat, two houses in different locations, or your classic vinyl record collection. Specified insurance, by contrast, is insurance for a number of items such as each in a collection of six valuable watches -- each item is insured separately and often has to be independently valued. You may have a standard home contents policy that has some cover for your jewellery, musical instruments, antiques or wine collection but not enough to replace it. Blanket coverage is a simple way to solve that problem because it gives you an overall limit and usually a per-item sublimit with no need to have each item independently valued. So if you want to cover your jewellery you could look to buy a simple £50,000 jewellery policy with a limit on any one item of no more than £5,000. Also, because a blanket cover insurance policy is more general from the insurer's point of view, the policy could cost less than a comparable specified one.

Cover amount

Know how much your valuables are worth to ensure you're happy you've got enough cover, or aren't paying out more than you need -- there's little sense in having a blanket cover insurance policy that insures a collection of racing bicycles for £20,000 if they cost £10,000 to buy. On the other hand, if your hi-fi system is only insured for £1,500 but will cost £4,000 to replace you could be in for a nasty shock. Some items, such as jewellery and antiques, may have gone up in value since you bought them so consider having them professionally valued from time to time.

Cover types

Many blanket cover insurance policies will replace an item that is lost, stolen or damaged with a new one, even if it's old. If you want to cut the cost of your premium as much as possible, you could take out indemnity cover where wear and tear is factored in and you only get part of the replacement cost. Some insurers let you take the cash rather than replacing a loss, whereas others won't. If you opt to pay a higher excess if you do make a claim, you should save money on the policy. Also consider cover away from home for jewellery or a laptop, but this is less important for a collection of fine art paintings which you never move. There are many options and it all depends what you want to pay for peace of mind. An insurance broker will be happy to talk through the options if you are in doubt.


Insurance is an annoying expense until you need to make a claim and you want to be sure it will pay out in that event. Insurers can be victims of fraud so they might ask to see receipts or bank statement proof that you owned valuable items, especially items like high-value watches. They might send an assessor to your house to see whether you were likely to have owned the things for which you've claimed. Keep your receipts together for purchases worth £1,500 or more so you can readily show your claim is valid and get the payment you are due.