What does blanket coverage provide?

Blanket coverage is designed to afford protection for more than one type of property or for various categories of coverage, all under a single limit. This means that rather than having distinct limits for individual properties or types of coverage, the insured can benefit from a collective limit that applies to multiple properties or coverage types. This approach offers flexibility, as the insured has the ability to allocate the total coverage limit among various properties or risks as needed.

For example, in a situation where an individual has multiple rental properties, a blanket coverage policy would allow them to combine the coverage for all those properties under one unified limit, rather than setting individual limits that could be restrictive. This can be particularly advantageous during claims, as it simplifies the process and may allow for better coverage placement.

In contrast to the other answer choices, blanket coverage specifically does not only pertain to a single property or provide separate limits for multiple properties, nor does it offer universal coverage for all hazards, which would imply a level of coverage that blanket policies do not typically encompass.