Blanket Coverage
Definition:
Insurance that provides a single limit of coverage across multiple properties or categories.
Explanation:
Instead of setting separate limits for each building or item, blanket coverage offers flexibility by combining them under one higher limit.
Example:
A landlord with several rental homes could use blanket coverage to insure all properties under one total coverage amount.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.