If an insured owns several buildings insured by separate policies, what type of coverage does this indicate?

The correct choice relates to a situation where an insured owns multiple buildings, each covered by separate insurance policies. This scenario indicates a "specific" type of coverage, which is designed to cover individual properties or assets distinctly. Under specific coverage, each building would have a separate limit of insurance and individual terms outlined in its policy. This means that the insurer assesses and underwrites each property based on its unique characteristics and risk factors.

In contrast, other forms of coverage handle multiple properties differently. For example, blanket coverage would combine the values of multiple properties into a single limit, offering more flexibility but less specificity regarding individual property values. Schedule coverage, while similar to specific in that it covers multiple properties, would typically involve listing each property specifically in the policy, often with detailed valuations per property, which is different from simply having separate policies. Lastly, special coverage usually indicates a type of insurance that covers a wide range of risks and may not pertain specifically to the ownership of multiple policies for different properties. Thus, the choice of specific coverage aligns perfectly with the scenario of each building being insured by its own policy.