How are personal inland marine coverages typically rated?

Personal inland marine coverages are typically rated based on a premium calculation system that takes into consideration the value of the property being insured. Rating "per 100 dollars" is standard in this classification because it provides a clear and manageable way to assess premiums based on the insured amount.

This method of rating allows for straightforward and proportional calculations. For example, if an individual insures $1,000 worth of property, the premium would simply be 10 times the rate charged per $100. This aligns well with the valuation typically associated with personal inland marine policies, as they often insure high-value items or goods in transit.

The choice of rating per 100 dollars helps maintain consistency in the marketplace and allows agents and underwriters to easily communicate and calculate premiums as the value of the insured items changes. Such a structure supports not only the understanding of costs by policyholders but also the underwriting process wherein the risk can be structured into fixed premiums based on this standardized rating point.