What is a key characteristic of blanket insurance policies?

A key characteristic of blanket insurance policies is that they simplify multiple coverage under a single limit. This means that blanket insurance allows property owners to cover multiple properties or a group of items under one single policy rather than requiring individual policies for each property or item. This approach not only streamlines the insurance process but also provides flexibility in how the coverage is applied among the covered properties.

For instance, if the total insured value is exceeded by losses from multiple properties, the insurer can allocate the coverage as needed, potentially providing greater overall protection. This is especially beneficial for businesses or individuals with various properties, as it reduces administrative work and can often lead to cost savings on premiums.

In contrast, other characteristics such as only covering specific properties, being limited to named-perils, or excluding commercial properties do not align with the fundamental nature of blanket insurance policies, which are designed to provide broader and more flexible coverage across multiple locations or types of property.