What type of policy covers a specific kind of property for a specified amount?

Prepare for the Kentucky Property and Casualty License Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Get ready for success!

The correct choice is specific insurance, as this type of policy is designed to cover a particular type of property for a predetermined amount. This means that it provides targeted coverage, focusing on specific assets and their associated risks.

In specific insurance, the insurance contract outlines the exact property or set of properties that are included in the coverage, along with the maximum amount that the insurer will pay in the event of a loss. This makes it an ideal option for individuals or businesses that want to ensure they are adequately protected for specific, high-value property items.

In contrast, blanket insurance provides coverage for a group of properties or multiple locations under a single limit, which is different from targeting a specific asset. Comprehensive insurance typically encompasses a broad range of risks and perils rather than focusing on a specific type of property. General liability insurance, on the other hand, does not cover property at all; it offers protection against claims involving bodily injury and property damage caused by the insured's operations or actions. Thus, specific insurance is the most precise option for covering a defined property type for an exact amount.

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