Which limitation is associated with the use of Blanket Coverage?

The correct choice highlights a key aspect of blanket coverage, which indeed involves a limitation on the duration of the coverage. Blanket coverage typically insures multiple properties or a group of related properties under a single policy. Such policies often have a coverage term of one year, which means they provide protection for that specific timeframe before renewal becomes necessary.

This characteristic is significant in commercial property insurance because it implies that policyholders must be vigilant about renewal to ensure ongoing protection. If coverage lapses without renewal, the properties could be left unprotected or underprotected.

In understanding why the other choices are less applicable: Blanket coverage does not inherently require complete coverage for all property. While blanket policies can cover many properties, it does not mean every piece of property must be fully covered under that policy.

The idea that high deductibles are required is not a standard limitation of blanket coverage specifically; deductible amounts can vary widely across various types of policies. Lastly, not allowing flexibility in claims is not a defining characteristic of blanket coverage. Blanket policies can indeed provide flexibility based on the insured properties, allowing for a fluid approach to managing risks across different locations or types of properties.

Thus, the limitation associated with blanket coverage truly centers on the one-year duration of coverage, which necess