Which term describes a single limit of insurance that applies to all of that property type?

The term "blanket" refers to a single limit of insurance that applies to a group of properties, typically of the same type, rather than individual limits for each property within that group. This coverage provides flexibility and simplifies underwriting, as the insured doesn’t need to assign a separate limit for each individual item of property. Instead, the blanket limit can be used to cover losses across all covered properties, making it beneficial for businesses or individuals with multiple locations or a varied inventory of similar assets.

In essence, a blanket policy offers broader protection and can help ensure that the insured has adequate coverage without needing to monitor specific limits for each piece of property. This can be particularly useful in situations where property values fluctuate or new assets are acquired, as the blanket limit adjusts to protect the entire set of covered properties under one overarching limit.