AD Banker Comprehensive Practice Exam

What type of coverage is typically provided by a blanket policy?

1. Specific event damage

2. General property insurance

3. All property under one limit

4. Individual itemized coverage

The correct answer is: All property under one limit

A blanket policy is designed to cover multiple types of property or locations under a single limit of insurance. This can include various structures, contents, or other forms of property, allowing for flexibility in coverage. The primary advantage is that it simplifies the insurance process since there’s no need to create separate policies for each individual item or category of property. This type of policy is particularly beneficial for businesses or individuals who have a diverse range of properties that they want to insure comprehensively without dealing with the complexities of itemizing each one. In contrast, specific event damage coverage is limited to damages incurred during a particular event, and general property insurance often does not encompass multiple items or locations under a single limit. Individual itemized coverage, on the other hand, requires each property or item to be separately listed and valued, potentially leading to greater administrative complexity and higher costs. Thus, the blanket policy's overarching coverage across various properties makes it a preferable choice for many who require broad and adaptable insurance protections.