How does a ‘schedules’ policy differ from a ‘blanket’ policy?

A 'schedules' policy differs from a 'blanket' policy primarily in that it outlines specific covered items. This kind of policy clearly identifies and details each item that is insured, offering precise coverage for those selected items. This allows both the insurer and the insured to have a clear understanding of exactly what is covered under the policy, which can enhance protection for high-value items or specialized assets.

On the other hand, a 'blanket' policy provides coverage for a group of items under a single limit, without specifying each item individually. This approach is more flexible, as it allows for coverage across various assets without the need for itemization, but may not offer the same level of clarity regarding which specific items are covered.

By clearly listing covered items, a schedules policy helps mitigate potential disputes regarding coverage, as each item is documented and explicitly acknowledged in the policy terms.