What type of policy is referred to as specific insurance?

Specific insurance refers to a policy that is designed to cover a particular item or piece of property. This type of coverage focuses on one designated asset, providing protection against losses related only to that specific item. For example, if you own a valuable piece of jewelry and purchase a specific insurance policy for it, the coverage will apply exclusively to that jewelry, including scenarios like theft or damage.

This contrasts with other types of policies, such as blanket insurance policies, which cover multiple assets under one sum of coverage without specifying individual items. Comprehensive liability insurance typically provides broader coverage related to liability claims but does not focus specifically on singular assets. Therefore, choosing a policy that clearly focuses on a specific item ensures that it is tailored for the unique value and risks associated with that property.