Underwriting rules decide if a risk

qualifies for coverage

Underwriting

Process which determines whether to sell a policy and what premium to charge

The more coverage purchased,

The higher the premium

Investigating claim history

includes both the type and number of claims filed

As it pertains to construction, when are premiums lower?

When sturdier materials are used, such as brick.

What is considered in availability of local fire protection?

Quality community fire protection and nearby water sources.

Rating Territory

Different areas have different risks; area is factored into insurance premiums

What is considered when classifying a rating territory?

Higher crime rates, storm activity, claims history, flood risk

Why does the price of a home not equal the cost to rebuild?

Because the price of a home includes the price of the land (property)

Premium discounts are offered based on

factors likely to reduce losses or expenses

Paid in Full Discount

Discount for paying a year's worth of insurance premiums up front

Mature Homeowner Discount

Owners have reached a certain age (dependent on insurance company)

Claim Free Discount

Discount for having never made a claim

Non-Smoker Discount

You don't smoke!

New Home Discount

Encourages buyers to purchase new homes/first-time homes

Credit-based Discount

Determined from credit score

Multi Policy discount

Discount for having multiple policies

Protective Devices Discount

Discount for having extra security devices protecting the dwelling (smoke detectors, fire extinguishers, burglar alarms, deadbolts, etc)

Loss Step 1: Notification

Notify agent or insurance company immediately; report any losses due to crime to police

Loss Step 2: Review

Review your policy and ask the insurance company questions regarding coverage dollar limits

Loss Step 3: Forms

Ask what forms are needed. Be timely and accurate.

Loss Step 4: Details

Make a detailed list of all damages and photograph/tape all you can before repairs are made.

Loss Step 5: Temporary

Make temporary repairs to keep things livable. Save receipts for temporary repairs, submit claim to insurance so they can inspect before repairing permanently.

Loss Step 6: Contact

Tell agent/insurance company where they can reach you.

Loss Step 7: Log

Write down date, name, and title of person spoken with and log everything said during the conversation.

Always keep

Inventory, Receipts, Photos/Videos, Documents (second location), Appraisal

When is your actual premium price determined?

Determined after the company receives the application and underwriting process is completed

Is a premium quote binding?

No.