What does "blanket coverage" refer to?

"Blanket coverage" refers to an insurance policy that provides protection for multiple locations or items under a single policy limit. This means that instead of needing separate policies for each location or item, an individual or business can consolidate their coverage, which simplifies management and may offer cost savings. For example, a business with several properties can have blanket coverage that protects all of these properties, allowing for flexibility in claims and making it easier to account for fluctuating values among different locations.

In contrast, coverage that applies to only one location is not blanket coverage, as it restricts the protection to a specific site. Coverage limited to specific high-value items is an entirely different type of policy, focusing only on certain valuable possessions rather than offering comprehensive coverage across multiple items or locations. Lastly, blanket coverage does not inherently exclude natural disasters; the scope of coverage will depend on the specific terms of the policy and any exclusions written into it.