What is the main benefit of having a ‘blanket’ policy?

A blanket policy is designed to provide coverage for multiple categories of property under a single limit, simplifying the underwriting process and reducing the administrative burden for policyholders. This versatility is particularly beneficial for businesses or individuals who own various types of assets that need protection against risks across different categories, such as theft, fire, and natural disasters.

By having a blanket policy, the insured does not have to procure separate policies for each category or item, which can be cumbersome and expensive. Instead, they receive a more streamlined approach to coverage, allowing for easier management of their insurance needs.

While other options touch on aspects of insurance policies, none capture the fundamental advantage of a blanket policy as effectively as the simplification of coverage for multiple asset categories does. This ensures that all insured items are covered cohesively, without the complexity of keeping track of individual limits for diverse property types.