Which type of insurance policy generally has the broadest coverage?

The blanket insurance policy is designed to provide coverage for multiple types of property or a variety of risks under a single policy limit, typically without specifying individual items or locations. This approach allows for greater flexibility and often broader coverage because it can cover a range of assets, regardless of their individual values.

For instance, if a business has a blanket policy that covers multiple buildings, furniture, equipment, and inventory, it can draw from the total coverage limit as needed across all covered items. In the event of a loss, the insured does not have to worry about whether they have allocated enough coverage for each specific item, which is often required in other policy types.

In contrast, specific and scheduled policies usually cover defined items or locations with specified limits, which could result in less overall coverage. Peril-specific policies only cover certain risks or causes of loss, which can leave other significant risks unprotected. This makes blanket policies advantageous for individuals or businesses that want comprehensive protection across several areas or types of property.