I sat at my kitchen table with a highlighter and a 40-page spreadsheet, trying to explain to the adjuster that, yes, I really did own 45 different specific drill bits that were stolen. He sighed and pointed to my policy: “You have a Scheduled Policy, but these items weren’t on the schedule. We can’t pay for them.” Because I hadn’t updated my list in six months, my $3,000 loss was being adjusted down to $0.
Key Takeaways
- The “Schedule” Trap: Scheduled coverage requires you to list every single item and its value. If you buy a new tool and forget to add it, it is not covered.
- Blanket is Better for Small Tools: “Blanket” coverage gives you a lump sum (e.g., $25,000) for all tools, without needing a list. It usually has a “per item” cap (e.g., max $1,000 per tool).
- The 80% Coinsurance Rule: With Blanket coverage, you must insure the total value of your tools. If you own $50k of tools but only insure for $25k to save money, they will penalize your payout by 50%.
- Hybrid Strategy: The best setup in 2026 is to “Schedule” big items (lasers, generators over $1k) and use a “Blanket” for everything else (hand tools, batteries).
The “Why” (The Trap): The Coinsurance Penalty
Insurers love “Scheduled” policies because the risk is defined. They hate “Blanket” policies because they don’t know exactly what they are insuring.
To protect themselves on Blanket policies, they use a Coinsurance Clause.
- The Trap: You have $50,000 worth of tools. You only buy $25,000 of Blanket coverage because you think, “I won’t lose everything at once.”
- The Penalty: If you lose $10,000 of tools, the insurer says: “You only insured 50% of your total inventory. Therefore, we only pay 50% of your claim.” You get a check for $5,000 minus your deductible.
The Investigation: “I Called Them”
I compared how three carriers handle the “List vs. Lump Sum” dilemma.
1. The Low-Cost Carrier (Next Insurance)
- The Offer: Mostly Blanket coverage.
- The Pros: Very easy. I selected “$10,000 in tools.”
- The Catch: The “Per Item Limit” was $500. If my $2,000 press tool was stolen, I’d only get $500 because I didn’t schedule it separately.
2. The Legacy Carrier (Travelers)
- The Offer: Strict Schedule for anything over $1,000.
- The Pros: Guaranteed replacement cost for high-value items.
- The Cons: Administrative nightmare. Every time I bought a new saw, I had to email my agent to add it.
3. The Specialist (Inland Marine)
- The Offer: “Unscheduled Tools” rider.
- The Pros: Allows a bucket of $5,000 for “miscellaneous tools” (hand tools, accessories) without a list, while scheduling the big iron. This is the sweet spot.
Comparison Table: Schedule vs. Blanket
| Feature | Scheduled Coverage | Blanket Coverage | Hybrid (Best) |
| Admin Work | High (Must list everything) | Low (Lump sum) | Medium |
| Premium Cost | Lower (Exact risk) | Higher (Unknown risk) | Moderate |
| New Purchases | Not covered until listed | Automatically covered | Covered (Small items) |
| Payout Limit | 100% of listed value | Capped per item (e.g., $1k) | 100% Big / Capped Small |
Step-by-Step Action Plan
- Audit Your Van: Take everything out. Separate items worth >
1,000fromitemsworth<1,000fromitemsworth<1,000. - Schedule the Big Stuff: Send a list of the >$1,000 items (make, model, serial) to your agent. Insure them for Replacement Cost.
- Blanket the Small Stuff: Estimate the total value of the small pile. Add 10% for inflation. Buy a Blanket policy for that amount.
- Check the “Per Item” Cap: Read your Blanket policy. If the cap is $500, make sure nothing in your “Small Stuff” pile is worth $600. If it is, move it to the Schedule.
FAQ
Q: Do I need receipts for Blanket coverage?
A: Yes. “Blanket” means you don’t have to list them before the loss, but you still have to prove you owned them after the loss (receipts/photos) to get paid.
Q: What about consumables like screws/glue?
A: Usually excluded. Insurance covers “equipment,” not “materials” (unless you have an Installation Floater).
[IMAGE: A photo of a spreadsheet column labeled “Scheduled Items” next to a pile of unlisted hand tools labeled “Blanket”.]