Definition - What does Specific Rate mean?
A specific rate is an insurance rate or price that is only applicable to one specific risk. Specific rates are commonly used in property insurance. This is because it can be very difficult for property insurers to generate generic rates for properties, since there can be so much variation from property to property.
Insuranceopedia explains Specific Rate
It is often beneficial for property insurance companies to use specific rates because it helps them to avoid setting rates too low or too high for properties. It is common for a physical inspection of the property to be required for an insurance company to generate a specific rate for the property. As with many other assets, the higher the risk of loss for the insurance company, the higher that the specific rate is likely to be.
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