Blanket Insurance Options
Tracking individual borrower policies isn’t always practical—or necessary. TEJ Agency offers flexible blanket insurance programs that protect your portfolio without the need for insurance verification on every loan. Whether you’re managing real estate, titled vehicles, or equipment, our blanket solutions provide continuous, cost-effective coverage that minimizes administrative burden while maximizing peace of mind.
Flexible Blanket Programs Tailored to Your Portfolio
Our programs are designed to fit the way you lend—offering broad protection without the operational weight of tracking every borrower’s policy.
Blanket Mortgage Insurance
Provides coverage for your entire real estate loan portfolio, including residential and commercial properties. No borrower-level insurance verification is required, reducing administrative costs and the risk of uninsured gaps.
Condo Hazard Blanket Coverage
Protects condominium loans with “walls-in” and “walls-out” hazard coverage. A simple way to ensure condo collateral remains protected—especially when master policies are unclear or inconsistent.
Residential Deficiency Blanket
Fills in coverage gaps when a borrower’s policy doesn’t fully meet your credit or underwriting guidelines. This is ideal for lenders who require certain coverage standards but don’t want to reject loans based on minor deficiencies.
Blanket Equipment Insurance
Covers UCC items, titled equipment, and mixed-collateral portfolios under a single policy. Particularly useful for lenders managing business loans or commercial financing programs.
Blanket VSI/Auto Coverage
Vendor’s Single Interest (VSI) insurance protects against damage or loss to repossessed or uninsured vehicles in your portfolio—without tracking borrower auto insurance.
Why Blanket Insurance is a Smart Option for Many Lenders
Reduces Operational Complexity
Blanket programs eliminate the need for insurance tracking, freeing up your team and streamlining compliance.
Delivers Continuous Portfolio Protection
You’re covered at all times, regardless of borrower behavior or policy lapses.
Supports Flexibility in Lending Standards
Blanket options give you room to serve a wider range of borrowers without compromising asset protection.
Frequently Asked Questions
What is the main benefit of using blanket insurance instead of tracking borrower policies?
The primary benefit of blanket insurance is simplicity. Instead of verifying and tracking every borrower’s insurance policy, a blanket program covers the lender’s entire portfolio automatically. This reduces administrative workload and ensures your assets are continuously protected, even if borrower insurance lapses or is never provided. It also speeds up loan processing and eliminates common servicing delays related to documentation.
What types of loans or collateral can be covered under a blanket program?
Blanket insurance is available for a variety of loan types, including residential mortgages, commercial real estate, auto loans, and equipment financing. We offer specialized options like Blanket Mortgage, Blanket Equipment, and VSI coverage to suit different asset classes. Our team works with you to determine the most appropriate combination of blanket solutions for your specific lending portfolio.
Can we use blanket insurance for part of our portfolio and tracking for the rest?
Yes, many lenders choose a hybrid model—using Insurance Tracking for certain loan types while applying blanket coverage to others. For example, you might track insurance on higher-value commercial loans while using blanket protection for auto or equipment loans. TEJ can help structure your program based on risk tolerance, loan volume, and operational goals.
Does blanket insurance still meet regulatory requirements?
Blanket insurance is compliant when structured properly. We ensure all policies meet applicable lending and investor standards, and that your institution retains the documentation needed for audits and reviews. For federally regulated loan types—such as flood-prone properties—we’ll help you determine if blanket coverage alone is sufficient or if supplemental options are needed.
How are premiums handled for blanket coverage?
Blanket premiums are typically paid by the institution rather than passed along to the borrower. These costs are often more predictable than lender-placed premiums because they’re not tied to individual loan events. In some cases, lenders recover costs through loan pricing or servicing fees. Our team can explain your options and help align the program with your budget model.
