Specific Rate

What Does Specific Rate Mean?

A specific rate is an insurance rate or premium applicable to a single, specific risk. These rates are commonly used in property insurance because generating generic rates for properties is challenging due to the significant variations between different properties.

Insuranceopedia Explains Specific Rate

Property insurance companies often benefit from using specific rates as it helps them avoid setting rates that are either too low or too high for individual properties. Typically, a physical inspection of the property is required to determine a specific rate. As with other assets, the higher the risk of loss to the insurance company, the higher the specific rate is likely to be.