Which basis applies one limit to both building and contents?

The blanket basis is used in insurance to provide a single limit of coverage that applies to multiple types of property, such as both building and contents. This approach simplifies coverage by consolidating protection into one comprehensive limit, allowing for flexibility if either the building or the contents sustain a loss.

For example, if a policy covers both the physical building and any personal property inside, having a blanket limit allows for easier management of claims, as the insured does not need to worry about separate limits for each category. If a loss occurs, the total limit can be utilized to cover the damage to either part, depending on the extent of the loss.

In contrast, other options like specific basis, reporting basis, or per item basis do not provide this combined coverage level. Specific basis refers to coverage assigned to individual items with separate limits, reporting basis typically involves adjusting coverage based on reported values over time, and per item basis allocates a limit for each item separately. Thus, these approaches do not offer the broad, single-limit protection that blanket basis provides, making blanket basis the correct choice for this question.