Definition - What does Blanket Rate mean?
A blanket rate is a single rate that is applied to a number of different insurance products or offerings. For example, a property insurance company may offer a blanket rate to a chain restaurant for coverage of all of its properties in a certain area.
Offering a blanket rate can make the underwriting process simpler when multiple properties are involved.
Insuranceopedia explains Blanket Rate
Blanket rates are an alternative to individual pricing for every insurance product that is offered. Generating a price for each individual product can be a time consuming process, so blanket rates are extremely convenient for each party involved.
Whether or not an insurance company provides a blanket rate depends on whether it believes doing so is in its best interest.
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