What role does a blanket limit play in property insurance?

A blanket limit in property insurance is designed to provide coverage for multiple properties under one comprehensive total value. This approach allows a policyholder to insure various items or properties without the need to assign specific limits to each one. It simplifies coverage, as the total insured amount can be used to cover losses across different locations or types of property.

For example, if a business owns several buildings, equipment, and inventory spread across different locations, a blanket limit would enable the business to protect all these assets without assigning a distinct coverage limit to each individual item or location. In the case of a loss, the insured can claim against the overall blanket limit rather than having to navigate multiple policies or coverage limits.

This flexibility offered by a blanket limit is particularly beneficial for businesses with diverse assets or those undergoing changes in their property portfolio, as it streamlines the insurance process and ensures adequate protection across the board.