Blanket Insurance

What Does Blanket Insurance Mean?
A single policy on an insured property that covers more than one type of property at the same location, the same kind of property at more than one location, or two or more kinds or property at two or more locations. Homeowner's insurance that covers personal possessions as well as the actual dwelling "blankets" all the homeowners' goods..

Investopedia explains Blanket Insurance
Borrowers are required by lenders to have and maintain homeowner's insurance in order to protect the lender from destruction of or damage to the home. The borrowers demand this because they want the home protected, as it is the collateral backing for the mortgage.