What does "blanket coverage" refer to in an insurance policy?

Blanket coverage in an insurance policy refers to a single limit of coverage that applies to multiple properties or risks. This type of coverage is beneficial as it streamlines the management of insurance for various properties, allowing a policyholder to have a comprehensive approach to risk management without needing separate policies for each individual property.

For example, a business that owns several buildings might prefer blanket coverage, giving them the flexibility to draw on the total coverage limit for whichever property suffers a loss, rather than being constrained by individual limits assigned to each property. This can simplify claims processes and provide more efficient protection tailored to the needs of the insured.

In contrast, other types of coverage, such as those covering a single property only or requiring separate policies for each property, would not provide the same efficiencies and could leave policyholders at risk if individual limits are insufficient for sudden or widespread losses.